Answer:
having lower overhead costs.
Explanation:
Robert started his company in his mother's garage so he did not have to pay rent or lease at the initial stage of his business. This gave him the opportunity to put his finances in essential aspects of his business.
Therefore he had an opportunity to reduce his overhead cost.
Answer: Differential cost is $5 per unit
Explanation:
Differential cost is the extra cost that the company would incur if they made the product themselves versus if they bought it from an outside supplier.
Differential cost is therefore:
= Cost to produce internally - Cost from supplier
= 23 - 18
= $5
<em>likely</em>
Answer:
$214,000
Explanation:
Total Revenues ($740,000 + $103,000) =$843,000
−Total Operating costs ($570,000 + $59,000)
=$629,000
= Total operating profit = $214,000
Therefore Assuming that there are no changes to the existing body shop business, operating profits would be expected to increase during 2021 by $214,000
Answer:
1- Industrial distributors
Explanation:
1- They are independent wholesalers that often have a sales force they call on purchasing agents, they also make deliveries, extend credit and provide valuable information. This kind of distributors are used in different industries such as manufacturing, mining, etc.
2- Marketing concept: It is a Philosophy that establish a Company should analyze which are their client´s need and after that, make decisions to satisfy those need, better than anyone else. This concept is adopted by most of the firms nowadays.
Answer: cost
Explanation: In simple words, cost refers to the total amount of resources used by an organisation for preparing its relative commodity to sell it to the ultimate customer. It is the sum of expenses incurred for the generation of revenue.
It is the total outflow of resources,therefore , the producers often use it for setting prices so that they can generate the amount of profit they are targeting for.
Hence we can conclude that the correct answer is cost.
