Based on the given scenario above, what Sal's reduction of effort represents DEFENSIVE STRATEGY. Defensive strategies are techniques that are utilized in order to combat an attack for possible competitors. In Sal's situation, since she is approaching retirement, her back up plan to decrease the possibility of having problems in the business is to reduce the number of locations.
<span>Ball bearings can face both fixed and variable costs of production. If we take a look at the fixed costs these would be: the cost of the factory, the cost of the machine, the maintenance of the machine which are needed to create the ball bearings etc. The variable costs are: the wages of the employee, the cost of the raw materials, and utilities required to create the ball bearings.</span>
Answer: Logistics
Explanation: Logistics refers to the group of complex operation that are to be performed within an organisation by different individuals under the guidance of various different experts of such tasks. These operations are dependent on each other for their effective performance.
Thus, we can conclude that the combination of Rinker's manufacturing, distribution and purchasing activities will collectively be called as logistics.
Answer:
a. ZTech will have a higher operating leverage because it has a higher fixed cost.
b. ZTech will have a higher profit since it has a higher operating leverage if the economy strengthens.
Explanation:
Operating leverage measures the the extent to which a firm uses fixed cost to finance its operations. The higher the fixed cost, the higher the degree of operating leverage
If the economy strengthens, the firm with a higher degree of operating leverage earns a higher profit.
Answer: Option (a) is correct.
Explanation:
Cheizza, a pizza vendor knows that the fresh cheese is the unique selling point for him. And because of this fresh cheese, the demand for his pizza is drastically increases. So, for meeting this demand, he have to purchase more cheese.
We know that cheese is made up from milk and milk is used as an input for the production of cheese. But milk is a raw material and limited in quantity to meet this demand.
Cheizza also knows that cheese is used in the pizzas, hence, if there is any changes in the supply of cheese, as a result it directly affects the demand for pizzas.
Therefore, there is a scarcity of resources in the form of milk.
