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podryga [215]
3 years ago
8

Potential advantages to initiating, continuing, or expanding international operations is that foreign operations can absorb exce

ss capacity, reduce unit costs, and spread economic risks over a wider number of markets.
Business
1 answer:
Daniel [21]3 years ago
4 0

Answer:

<em>True:)</em>

Explanation:

<em>The given statement is very</em> TRUE.

Yes, as we know that in international operations the companies are given the freedom to find new consumers for their goods and as well as products. And foreign operations have the power to absorb as the demand is less than the stock, and also reduces the unit cost as their is no more production because of the less demand.

You might be interested in
Maxim manufactures a hamster food product called Green Health. Maxim currently has 15,500 bags of Green Health on hand. The vari
zaharov [31]

Answer:

b. $13,200.

Explanation:

Revenue from the sale of Green Health bags = Number of bags * Selling price

Revenue from the sale of Green Health bags = 15,500 bags * $10

Revenue from the sale of Green Health bags = $155,000

Revenue from Premium Green = Number of bags * Selling price

Revenue from Premium Green = 15,500 bags * $9

Revenue from Premium Green = $139,500

Revenue from Green Deluxe = Number of bags * Selling price

Revenue from Green Deluxe = 4,100 bags * $7

Revenue from Green Deluxe = $28,700

Incremental revenue = Revenue from Premium Green + Revenue from Green Deluxe - Revenue from Green Health\

Incremental revenue = $139,500 + $28,700 - $155,000

Incremental revenue = $13,200

So, the incremental revenue of processing Green Health further into Premium Green and Green Deluxe would be $13,200.

6 0
3 years ago
Ric wants to invest in government securities that promise to pay $1,000 at maturity. The opportunity cost (interest rate) of hol
lutik1710 [3]

Answer: An investment that matures in five years

Explanation:

Both investments may be of equal risks, but by virtue of having different maturity dates, they will not be priced the same.

This is because the discount rate (opportunity cost) will discount the maturity value more the longer the investment is such that the present value is lower.

4 year investment

= 1,000 / (1.068)^4

= $768.63

5 year investment

= 1,000 / (1.068)^5

= $719.69

The 5 year investment will have a lower present value and will be charged lower.

4 0
3 years ago
Calculate the inventory-to-sale conversion period based on the following information: average inventories = $110,000; average re
Slav-nsk [51]

Answer:

232.08 days

Explanation:

<em>Inventory to sales conversion period is the average length of time it will take a business to sell its stock items and then replace them. It give s an indication of patronage from customers and the shorter the better.</em>

It is determined as follows:

Average inventory period

= (Average inventory/cost of goods sold) × 365 days

= (110,000/173,000) × 365 days

= 232.08 days

<em>It takes on the average 232.08 days to sell and replace stock</em>

4 0
3 years ago
The production possibilities curve illustrates the basic principle that
krok68 [10]

Answer:

If all the resources of an economy are fully used, more of one item could be produced only if less of another item is produced

Explanation:

The concept of production possibility curve shows the different commodities that can be produced in a given economy, given the prevailing level of technology, if all available resources are efficiently utilized.  The idea behind production possibility curve is that in other for in order to produce a particular commodity, the production of another commodity has to be scarified provided that i.e if all the resources of an economy are fully used, more of one item could be produced only if less of another item is produced  

6 0
3 years ago
Cost of goods sold is budgeted at 40% of sales, and the inventory at the end of February was $34,000. Desired inventory levels a
maksim [4K]

Answer:

$9,920

Explanation:

The computation of the desired beginning inventory as on June 1 is shown below:

Inventory as on June 1 = Given percentage of the cost of goods sold in the month of June

= 10% ×  (40% × $248,000)

= 0.10 × $99,200

= $9,920

As the cost of goods sold is 40% of sales so we considered this thing and according to it we find out the beginning inventory

5 0
3 years ago
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