1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
icang [17]
3 years ago
10

Auto Parts, Inc. is medium-sized company that manufactures auto parts in Buffalo, New York. The company currently loses $40,000

per month. The owner of the company is evaluating whether she should shut down the factory. She thinks that the factory should continue to operate until the economic environment improves and buyer for the factory can be identified. The logic of the owner is that her company has already invested millions of dollars in the factory over the years. The monthly fixed costs for the factory are $30,000. The CEO of Auto Parts, Inc. thinks the factory should be shut down because most the monthly fixed costs ($30,000/month) are sunk costs.
Do you agree with the owner or the CEO?
Business
1 answer:
Firlakuza [10]3 years ago
7 0

Answer:

I agree with the owner of the company

Explanation:

The overall losses are $40,000 per month and the fixed costs are $30,000 per month.

The company should stop production because the losses are over fixed cost and this tells us that the company is not even able to recover the variable costs and because the variable costs are not at least recovered, there would be no point for the company to continue in the business as it would keep on making a loss and the logic might be wrong regarding sunk costs but the decision must be taken in favour where production should be stopped.

You might be interested in
(1 point)
Elan Coil [88]

Answer:

Explanation: do you have the answer now?

6 0
3 years ago
How can the local, state and federal government do to help workers who have lost wages or business owners dealing with losses?
Natalka [10]
The government can support those people.
3 0
3 years ago
How has Internet of Things impacted business?
dalvyx [7]

Answer: D. Business equipment can be continually adjusted based on analysis of data.

Explanation: Apex Learning - Computer Applications 5.4.3 Test (CST)

This was the answer given in the lesson, as well as during the quiz. (I am not giving sass, just hoping this answer doesn't get removed like all the other apex answers I have shared.)

8 0
3 years ago
Read 2 more answers
There is an emerging trend in retail that favors Asian products, so Kroger partners with Alibaba, an Asian e-commerce corporate.
Crazy boy [7]

Answer: E. Coping with changes in demand.

Explanation: The partnership of Kruger Co. with Alibaba is a direct consequence of the emerging trend in retail markets that favors Asian products. By this partnership, Alibaba Group's massive customer base (mostly online) is open to Kruger wherein it could scale and test the sale of its own brand groceries. The e-commerce plan is strategic, to redefine the grocery customer experience, creating customer value and driving top-line growth via alternative revenue streams.

4 0
3 years ago
When the activity level declines within the relevant range, what should happen with respect to the fixed cost per unit and varia
viktelen [127]

Answer:

The correct answer is option C.

Explanation:

The fixed costs are the cost that does not vary with the level of output. It does not vary with the level of activity. The total fixed cost remains constant in the entire production process.

The fixed cost per unit is the ratio of total fixed cost and level of output. It decreases as the output level increases and rises with a decline in activity.

The variable cost is the cost that is incurred on the variable inputs used in the production process. It directly varies with the volume of activity. The total variable cost will increase with the increase of output as more variable inputs are employed.

The variable cost per unit is the cost incurred on each unit of output. It does not change with the level of activity unless there is a change in input prices.

8 0
3 years ago
Other questions:
  • Which of the following communication network structures has the highest centralization?
    6·1 answer
  • On January 15, 2019, Dillon purchased the rights to a mineral interest for $3,500,000. At that time, it was estimated that the r
    11·1 answer
  • Accounting Rate of Return Each of the following scenarios is independent. Assume that all cash flows are after-tax cash flows. C
    13·1 answer
  • If a stock with a beta of 1.4 is expected to return 18% when Treasury bills yield 6%, what is the expected return on the market
    8·1 answer
  • The data show the percentage of households that composted kitchen waste and those that composted yard waste in 26 regions of a c
    7·1 answer
  • A company purchased a new delivery van at a cost of $61,000 on July 1. The delivery van is estimated to have a useful life of 5
    13·1 answer
  • On 1/1/27, Frankfort Company sold 100 components at $700 each. All sales were cash sales. Estimated total cost servicing the com
    12·1 answer
  • Sherry is known for being very task oriented in her approach to manage subordinates. Which at the following statement is noot li
    10·1 answer
  • Kirk Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint pr
    15·1 answer
  • Can someone give me an overview of Apple Inc. their success and best management practices?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!