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2 years ago

Which of the following BEST describes a distinctive competency of a firm?

Business

1 answer:

arlik [135]2 years ago

5 0

Answer:

C. A capability that is superior to the competition

Explanation:

Distinctive competency of a firm simply refers to a firm’s unique capability which makes the firm stand out in an area (areas such as marketing activities, technology etc) among their competitors. Distinctive competence makes a firm have an advantage over others, as well as perform better than other competitors.

For example, the distinctive competency of Apple is their ability to create well-designed products that are customer-centric and friendly to use.

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You work for a pharmaceutical company that has developed a new drug. The patent on the drug will last 1717 years. You expect tha

Svetlanka [38]

Answer: The present value of the new drug is $19.33 million

We follow these steps to arrive at the answer:

Expected Revenues from the drug in year 1(P) $2 million

Growth Rate (g) 2% p.a.

No. of years (n) 17 years

Discount rate (r) 9% p.a.

Since the revenues are expected to grow at a constant rate of 2% p.a, we can treat this series of cash flows as a growing annuity.

We calculate the Present Value of a growing annuity with the following formula:

$PV = \frac{P}{r-g}*\left [ 1- \left (\frac{1+g}{1+r}\right)^{n}\right]$

Substituting the values we get,

$PV = \frac{2}{0.09-0.02}*\left [ 1- \left (\frac{1+0.02}{1+0.09}\right)^{17}\right]$

$PV = \frac{2}{0.07}*\left [1- 0.323558233\right]$

$PV = 28.57142857 * 0.676441767$

$PV = 19.32690763$

8 0

2 years ago

If a firm's marginal costs _____ then its _____. Group of answer choices rise; output increases fall; best-response curve shifts

ziro4ka [17]

If a firm's marginal costs fall, then its price falls.

This is based on the principle that if the marginal cost of a product or firm rises, that implies that the firm is operating at a high fixed cost, thereby leading to an increase in the cost of production, which generally equates to products having a high price.

On the other hand, where there is low marginal cost, production costs reduce because the products are being produced at a lower fixed cost. Thereby leading to lower prices.

Hence, in this case, it is concluded that "If a firm's marginal costs fall, then its price falls."

Learn more here: brainly.com/question/10474336

7 0

2 years ago

The basic source of state government's revenue is the property tax. a. True b. False

just olya [345]

True. Property taxes are local government largest source of tax revenue.

8 0

2 years ago

Budget Performance Reports for Cost Centers Partially completed budget performance reports for Delmar Company, a manufacturer of

julia-pushkina [17]

Answer:

Delmar Company

Budget Performance Report—Vice President, Production

For the Month Ended June 30

Plant Actual Budget Over Budget (Under) Budget

Eastern Region $4,200,000 $4,250,000 $(50,000)

Central Region 6,175,000 6,200,000 (25,000)

Western Region 8,515,000 8,200,000 $375,000

$18,890,000 $18,650,000 $375,000 $(75,000)

Delmar Company

Budget Performance Report—Manager, Western Region Plant

For the Month Ended June 30

Department Actual Budget Over Budget (Under) Budget

Chip Fabrication $4,300,000 $4,000,000 $300,000

Electronic Assembly 2,575,000 2,500,000 75,000

Final Assembly 1,640,000 1,700,000 $(60,000)

$8,515,000 $8,200,000 $375,000 $(60,000)

b. Memo to Randi Wilkes, Vice President

To: Vice President, Production

From: FC

Subject: Budget Performance Report—For the Month Ended June 30

Date: July 3, 2021

The above-mentioned subject refers.

The production division incurred $315,000 more costs than budgeted. The extra costs are reflected in the increasing cost of producing light duty motors in the Western Region. The overall increase is caused by the regional differences in Chip fabrication and Electronic Assembly.

There is a need to review production activities with these two production processes with a view to reducing costs.

Regards,

Explanation:

a) Data and Calculations:

Delmar Company

Budget Performance Report—Vice President, Production

For the Month Ended June 30

Plant Actual Budget Over Budget (Under) Budget

Eastern Region $4,200,000 $4,250,000 $(50,000)

Central Region 6,175,000 6,200,000 (25,000)

Western Region (g) (h) $(i)

$(j) $(k) $(l) $(75,000)

Delmar Company

Budget Performance Report—Manager, Western Region Plant

For the Month Ended June 30

Department Actual Budget Over Budget (Under) Budget

Chip Fabrication $(a) $(b) $(c)

Electronic Assembly 2,575,000 2,500,000 75,000

Final Assembly 1,640,000 1,700,000 $(60,000)

$(d) $(e) $(f) $(60,000)

Delmar Company

Budget Performance Report—Supervisor, Chip Fabrication

For the Month Ended June 30

Cost Actual Budget Over Budget (Under) Budget

Factory wages $1,450,000 $1,200,000 $250,000

Materials 1,575,000 1,600,000 $(25,000)

Power and light 945,000 900,000 45,000

Maintenance 330,000 300,000 30,000

$4,300,000 $4,000,000 $325,000 $(25,000)

a. = $4,300,000

b. = $4,000,000

c. = $300,000 ($325,000 - $25,000)

d. = $8,515,000 ($4,300,000 + 2,575,000 + 1,640,000)

e. = $8,200,000 ($4,000,000 + 2,500,000 + 1,700,000)

f. = $375,000 ($300,000 + 75,000)

g. = $8,515,000

h. = $8,200,000

i. = $375,000

j. = $18,890,000 ($4,200,000 + 6,175,000 + 8,515,000)

k. = $18,650,000 ($4,250,000 + 6,200,000 + 8,200,000)

l. = $375,000

8 0

2 years ago

ohnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently.

Vesnalui [34]

Answer:

Johnstone should value the equipment at $40,326.29.

Explanation:

To determine this, the present value of the five annual installments of $8,000 is first calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV = Present value of the five annual installments =?

P = Annual payment = $8,000

r = interest rate = 10%, or 0.10

n = number of years = 5

Substitute the values into equation (1) to have:

PV = $8,000 * ((1 - (1 / (1 + 0.10))^5) / 0.10)

PV = $8,000 * 3.79078676940845

PV = $30,326.29

Therefore, the present value of the five annual installments of $8,000 is approximately $30,326.29.

As result of this:

Value the equipment = Payment on the purchase day + present value of the five annual installments = $10,000 + $30,326.29 = $40,326.29

Therefore, Johnstone should value the equipment at $40,326.29.

7 0

2 years ago

Which of the following BEST describes a distinctive competency of a​ firm?

Which of the following BEST describes a distinctive competency of a firm?