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Tomtit [17]
3 years ago
7

An increase in the selling price per unit will decrease an organization's operating leverage, assuming sales unit volume doesn't

change and there are no other changes in its cost structure.a) trueb) false
Business
1 answer:
xenn [34]3 years ago
7 0

Answer:

a) true

Explanation:

This is true because, increasing the price of the product sold by an organisation directly lead to the reduction of the operating cost of the said organization, all other things being equal. <em>For example, a glass manufacturing company increasing the selling price per unit glass from $40 to $90 will definitely lead to operating cost reduction.</em>

You might be interested in
Briefly explain the differences between functional, matrix, and project organizations. Describe how each structure affects the m
denis-greek [22]

Answer

The classic function organisation, is a pecking order where every worker has one clearsuperior. Staff individuals are gathered by specialities, for example, generation, promoting, building, and accountingat the top level. Specialties might be additionally subdivided into centered useful units, for example, mechanical and electrical designing. Every department as an utilitarian association will do its venture work autonomously of different offices

Matrix organisation, mirror a mix of practical and projectized characteristics. Matrix organisation can be named feeble, adjusted, or solid relying upon the overall degree of intensity and impact among utilitarian and undertaking chiefs. Powerless framework associations keep up huge numbers of the qualities of a practical association, and the job of the venture director is even more an organizer or expediter.A venture expediter fills in as staff collaborator and correspondences facilitator. The expediter can't settle on or implement choices. Task facilitators have capacity to settle on certain choices, have some position, and report to a more elevated level supervisor. Solid framework associations have a large number of the attributes of the projectized association, and have full-time venture supervisors with extensive position and full-time venture regulatory staff. While the reasonable framework association perceives the requirement for a task supervisor, it doesn't give the venture administrator the full authority over the undertaking and venture financing.

In a projectized organisation, colleagues are regularly colocated. The greater part of the association's resources are engaged with venture work, and undertaking directors have a lot of freedom and authority. Virtualcollaboration strategies are regularly used to achieve the advantages of colocated groups. Projectized organizations often have authoritative units called divisions, however they can either report legitimately to the task director or provide bolster administrations to the different undertakings

How they affect the management

In a functional organisation, extends that exist inside a solitary useful division produce no specific authoritative issues, yet extends that cut across utilitarian divisions can be testing. Why? Tasks that stretch out across practical divisions are requesting to oversee on the grounds that the undertaking director has no direct utilitarian position and should get ceaseless collaboration and backing from useful supervisors of different divisions so as to meet venture goals. This can get confusing.

Since the matrix structure offers position to both venture administrators(project manager) and utilitarian directors(functional manager) the result is to give an increasingly consistent division of work and at last to construct a more grounded group culture. In any case, the potential for struggle between useful supervisors and task administrators still exists on the grounds that there is still asset strife. Everybody who is on a task group still has two supervisors – their practical director and their venture administrator.

In a projectised organisation authority is incorporated. Since ventures are expelled from useful divisions the lines of correspondence are abbreviated. Both these elements upgrade the capacity to settle on quick choices. Undertaking groups build up a solid feeling of character which thusly makes a significant level of responsibility from colleagues. Because of their contribution in successive ventures of a comparable sort projectised associations can create and keep up a long haul assortment of experience and aptitudes in explicit regions.

Obviously projectised organisation make it simpler to run ventures on the grounds that the whole structure is set up for that reason. However, on the off chance that you are dealing with a task inside other hierarchical structures, at that point perceiving and understanding the effects will raise your attention to the potential undertaking the board entanglements, so you can be proactive about settling them. Correspondence, compromise and group building will be vital to your prosperity.

8 0
3 years ago
Jack Thomas, who live in Minnesota, and Sandy Silver, who live in Oklahoma, each purchased $92,000 worth of securities at the lo
Alenkasestr [34]

Answer:

Follows are the responses to the given points:

Explanation:

In point a:

Yeah, throughout the state court they will ever sue against fraud. As base with the that State is appropriate so because the main place of work is specific budget inventory representatives Inc.

In point b:

Thomas couldn't sue for cheating at the federal court successfully, because equality in nationality would be the only conceivable way. Because as a federal problem also isn't involved, Thomas and both are comprehensive residents of Michigan weren’t diverse for this situation. The business is a resident of all its corporate headquarters and the State of formation.

In point c:

Throughout this situation, silver can claim nationality plurality, as Oklahoma's comprehensive would not be a citizen. It simple company does company in such a state doesn't render that business a citizen. However, if silver has been damaged in terms of $75,000, this failure combined with citizenship diversity would allow it to sue extensively in a federal court. This event does not tell everyone how slowly he lost, however, the facts weren't enough to make a correct judgment.

3 0
3 years ago
Curzon International is a hospitality chain that has a wide range of hotels and motels. The company provides luxurious and outst
Mariana [72]

Answer: Altruism

             

Explanation: It refers to the behavior when an individual considers the benefit of other more important than the self benefit.

In the given case, the hotel chain has the sole purpose of providing best services to its customers. They are not ready to forego their dedication towards service even if it results in loss of their market share.

It is not a case of excellence as they are not charging extra for the same service to increase their profits.

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

7 0
3 years ago
The market value of​ Fords' equity, preferred​ stock, and debt are $ 7 ​billion, $ 2 ​billion, and $ 13 ​billion, respectively.
Alisiya [41]

Answer: 9.48%

Explanation:

Given Data

Debts ;

$7 billion

$2 billion

$13 billion

Beta of Fords stock = Beta = 1.50

Market risk premium = Rp = 8.0%

Risk free rate of interest = Rf = 4.0%

Equity rate = 1.7

Market risk rate = 0.8

Risk free rate = 0.03

Therefore;

Cost of Equity ( Re ) = Risk free rate + equity rate × market risk premium

= 0.03 + (1.7 × 0.8)

= 0.166

Preferred Stock Cost ( PSC)= Dividend ÷ stock price

= 4 ÷ 30

= 0.1333

Total debt = 13 + 6 + 2 = 21 billion

D% = 13 billion ÷ 21 billion

      = 0.619

E% = 6 billion ÷ 21 billion

     = 0.286

P% = 2 billion ÷ 21 billion

     = 0.095

RD = debt capital at 8% maturity rate

Tc= 30%

Rwac =(w/ preferred stock)

= Re × E% + PSC × P% + Rd ( 1- Tc) D%

Rwac = (0.166)(0.286) + (0.1333)(0.095) + (0.08)(1- 0.3)*(0.619)

= 0.094803 * 100

= 9.48%

At 30% tax rate Ford weighted average cost is 9.48%

4 0
3 years ago
Treasury bills and Treasury notes are an investment security issued by the U.S. government. A Treasury bill matures within one y
mel-nik [20]

Answer:

<u>I would rollover.</u>

Explanation:

It is expected an increase in the interest rate in the near future. It is better to <u>wait for the purchase of a long-term note because</u>, once the interest rises, the <u>price of the TS at 9 years will decrease</u> to match the new yield.

While doing a rollover we can make the cash work at 5% and start yielding at 7% in six month. Once the expectation of higher interest rate vanish, I can consider moving to a long Treasury Bill, which most probably will have a lower cost than today.

5 0
3 years ago
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