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abruzzese [7]
3 years ago
7

The supply chain includes a. suppliers and suppliers' suppliers. b. all entities that facilitate product distribution. c. suppli

ers, producers, intermediaries, and customers. d. buyers, sellers, marketing intermediaries, and agents.
Business
1 answer:
aliya0001 [1]3 years ago
7 0

Answer:

The correct answer is option b. all entities that facilitate product distribution.

Explanation:

A supply chain is an integrated network between the company and its back end distributors. It is their responsibility to supply the manufactured product to the end customer.

This closely knitted network consists of different people, activities, entities, information systems, resources and channels.

For example an example of supply chain activity would be farming. From crops to the end customer.

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Explanation: A quick definition of both concepts would be of help. A price floor is usually fixed by government legislation and it ensures that the price of a commodity or service does not fall below a certain minimum. In the case of farm crops, a floor price makes sure that the farmers are guaranteed a level of profit in case there is poor harvest for any reason whatsoever. The price floor must be fixed above the equilibrium price for this to be effective.

A target price is an expectation of the future price of commodities or services, and hence prices are fixed ahead of the harvest in the case of farm crops. This is so because as explained earlier, future conditions might change and become unfavorable, therefore making the current market price unprofitable for farmers. If for example, a sack of potatoes currently sells for $30, the government may fix the price floor ahead of the harvest season at $45 per sack. This implies that after harvesting farmers can still sell at $30. However if the harvest turns out to be bad perhaps due to natural disasters, pests or fungal attacks, etc, then the farmers can go ahead and sell at $45 and possibly higher. No farmer is allowed to sell below $45 (since that is the ‘floor’). That way, farmers would still have some profit guaranteed and would be encouraged to remain in the farming business.

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Answer:

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Direct material cost  ($9,000 x 500 units)              4,500,000                              

Direct labour cost (300 hrs x $15 x 500 units )       2,250,000

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