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2 years ago

The term economies of scale refers to the fact that as the:

Business

1 answer:

frutty [35]2 years ago

7 0

Answer:

quantity of product produced in a given period increases, the cost of manufacturing each unit decreases

Explanation:

Economies of scale happens when the average total cost (variable + fixed production costs per unit) decreases as total output increases. This generally takes place because fixed costs are the same for a small number of units produced or a large number of units produced, so the average fixed cost per unit tend to decrease as more units are produced (at least up to certain point). Variable production costs per unit can also decrease as total output increases since materials might be purchased in larger quantities resulting in higher discounts or labor productivity increases.

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Production equipment costing $500,000 has been purchased by a contract manufacturing company to meet the specific needs of a cus

irina1246 [14]

Answer:

Short-cut IRR = 18.75%

The company has not reached their rate of return goal on this contract and investment.

Explanation:

a) Data and Calculations:

Cost of production equipment = $500,000

Qualified investment tax credit (ITC) = 10% = $50,000 ($500,000 * 10%)

Contract period = 4 years with 4 years extension on renewal

Income tax rate for the company = 40%

Expected after-tax rate of return = 12%

Expected before-tax rate of return = 30% (12%/40%)

Annual income generated by the equipment = $150,000 for 4 years

Salvage value at the end of 4 years = $200,000

Short-cut IRR = 100%, divided by the number of years * about 75-80%

= 100%/4 * 75%

= 18.75%

8 0

2 years ago

True or false: Without knowing the future, it is best to have a cost structure with high variable costs.

konstantin123 [22]

Answer:False

Explanation:It is not obvious which cost structure is better, both have advantages and disadvantages

7 0

2 years ago

Do you consider it morally and ethical wrong to pay bribes through an agent entering an international market faster, receiving n

Ghella [55]

Answer:

yes I do believe it is ethically and morally wrong to pay bribes

3 0

1 year ago

Read 2 more answers

Macroeconomic forces contribute to an industry's ability to be profitable. Which of the following examples shows how a company m

Elis [28]

Answer:

A home mortgage company creates a sales promotion with incentives for potential home buyers to take advantage of a particularly favourable interest rate.

Explanation:

Companies usually give numerous promotions to their valuable customers to increase the overall sales revenue. In the above scenario, if a home mortgage company creates a sales promotion which attracts customers to buy their product and take advantage of the favourable interest rate is an example of companies focusing on macroeconomic factors. Macroeconomic forces are important for any company to improve profits.

6 0

2 years ago

During business cycle expansions when income and wealth are rising, the demand for bonds ________ and the demand curve shifts to

insens350 [35]

During business-cycle expansions when income and wealth are rising, the demand for bonds rises and the demand curve shifts to the right, everything else held constant.

A business is an activity that makes a living or makes money by manufacturing or buying and selling products (such as goods or services).

The existence of a company name does not separate the entity from its owner. In other words, the company owner is responsible and liable for the debt incurred by the company. Creditors can trace owner's personal property Corporate structure does not allow corporate tax rate Owners are personally taxed on all income from the business.

Learn more about business here:brainly.com/question/24553900

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5 0

4 months ago