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musickatia [10]
3 years ago
11

Sunland Company manufactures and sells high-priced motorcycles. The Engine Division produces and sells engines to other motorcyc

le companies and internally to the Production Division. It has been decided that the Engine Division will sell 26000 units to the Production Division at 1050 a unit. The Engine Division, currently operating at capacity, has a unit sales price of $3150 and unit variable costs and fixed costs of $1050 and $2100, respectively. The Production Division is currently paying $3000 per unit to an outside supplier. $90 per unit can be saved on internal sales from reduced selling expenses. What is the increase/decrease in overall company profits if this transfer takes place?
a. Decrease $1,200,000

b. Increase $2,520,000

c. Decrease $3,000,000

d. Increase $27,000,000
Business
1 answer:
Andreyy893 years ago
8 0

Important dsiclamer: there was a type in the question you enter 26,000 while in the textbook is for 20,000

Answer:

a. Decrease $1,200,000

Explanation:

Income before internal transfer:

revenue 3150

cost        1050

gross     2100

fixed      (2100)

operating     0

external engine purchase (3000)

net (3000)

After internal change:

revenue 1050

cost       (960)

gross profit  90

fixed     (2100)

operating (2010)

internal engine purchase (1,050)

net    (3,060)

difference -3060--3000 = 60

20,000 units x 60 = 1,200,000

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MaRussiya [10]

Answer:

The correct answer is letter "A": number of firms in an industry.

Explanation:

A concentration ratio measures the number of competitors within the same industry. The lowest concentration ratio of a firm, it represents there are more market rivals. The highest the concentration ratio, the lower the number of competitors of the firm. The ratio is expressed in percentage terms. A firm having a 100% concentration ratio is a monopoly.

8 0
3 years ago
Before Sandra opened her florist shop she read all she could about the floral industry. She also consulted several published res
Rom4ik [11]

Answer: Secondary data

       

Explanation: In simple words, the data that is collected by someone and is used by someone else is called secondary data. Government reports and surveys by other such organisation are two of the many examples of secondary data.

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Hence, from the above we can conclude that the correct option is B.

5 0
3 years ago
when managers become personally involved in developing public policy, the firm is at what level of business political involvemen
Bumek [7]

Aggressive organizational involvement is business political involvement when managers become personally involved in developing public policy

What is Aggressive organizational involvement ?

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Given the large number of aggression-related constructs in the industrial/organizational psychology, human resource management, and organizational behavior literature, the definition and measurement of workplace aggressiveness have been the subject of significant debate.

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3 0
1 year ago
A company pursuing a focus strategy a. attempts to serve all market segments. b. concentrates on building market share in one ma
Reika [66]

Answer:

<h2>In Economics and Business, a focus strategy implies concentration of particular market segment and enhance market share by satisfying the needs and demands of consumers in that particular segment.Hence,the correct answer in this case is option a.</h2>

Explanation:

In business,focus strategy is often employed to gain or enhance market share and exercise market leadership.A focus strategy by any business involves the process of focusing or concentrating on any one particular segment of the market and establish a strong and sustainable consumer base in the particular segment to enhance market share.In order to successfully execute the focus strategy,a company or business organisation has to be confident that it can considerably fulfill the market demand in that particular segment and has enough productive resources to do so.There are commonly two types of focus strategy in business:1) Focused cost leadership strategy,which basically aims at improving the regular lifestyle of people by offering affordable products and services and 2) Focused differentiation strategy,which concentrates on providing differentiated or variety of products or services according to the customer needs and preferences within a particular market segment.

6 0
3 years ago
________ is the task of developing and maintaining an overall company strategy for long-run survival and growth. short-term plan
mr Goodwill [35]
Strategic planning is the task of developing and maintaining an overall company strategy for long-run survival and growth. 

In business, strategic planning is a vital step to succeed long-term. The steps involved in strategic planning define the companies overall goal/mission, direction for the company and how they are going to get there. 
8 0
3 years ago
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