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ElenaW [278]
3 years ago
5

Escareno Corporation has provided its contribution format income statement for June. The company produces and sells a single pro

duct. If the company sells 8,200 units, its total contribution margin should be closest to: Select one: a. $301,000 b. $311,600 c. $319,200 d. $66,674
Business
1 answer:
Dmitrij [34]3 years ago
7 0

Answer:

b. $311,600

Explanation:

For the computation of total contribution margin first we need to find out the contribution margin per unit which is shown below:-

Contribution Margin per Unit = Contribution Margin ÷ Units Sold

= 319,200 ÷ 8,400

= $38

Total Contribution Margin = Contribution Margin per Unit × Units Sold

= $38 × 8,200

= $311,600

Therefore for computing the total contribution margin we simply applied the above formula.

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Suppliers are more likely to be powerful relative to the firms to which they sell their goods and services if: a. differentiatio
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Option D is the correct option

Explanation:

The bargaining power of the supplier is only high when the products of other supplier are not highly differentiated, presence of fewer suppliers of the product, fewer substitutes are possible and the costs of the existing supplier are high (Rivalry would be low). All this constitutes to competitve advantage to a firm if its product possesses differentiation, its products can be substituted, possesses greater control over costs, etc. So the only option that matches this criteria is option D.

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3 years ago
Capricorn Creative Inc., a U.S.-based advertising firm, was the first in the advertising industry to identify the growth potenti
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Answer:

A. -

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First Mover Advantage (FMA) is a marketing or business strategy where the advantage is gained by the initial significant occupant of a market segment.

Capricorn creative inc. being the first to identify the potential in Brazil and make investments is now benefiting from brand loyalty amongst others. By being the first mover/initial they gained competitive advantage in what looks like a monopoly-like status.

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7 0
4 years ago
Firm A produces desks. It is situated in the US but imports wood from Brazil. Last year it imported $8,000 in lumber and sold 10
Veronika [31]

Answer:

The correct answer is C: 48000

Explanation:

The Expenditure Approach is a method of measuring GDP by calculating all spending throughout the economy including consumer consumption, investing, government spending, and net exports. This method calculates what a country produces, assuming that the finished goods and services of a country equals the amount spent in the country for that period.

<u>The formula is: </u>

GDP=C+I+G+/-NX

GDP: Gross Domestic Product

(C) consumer spending – this is the amount that all consumers spend on goods and services for personal use.

(I) investment – this is the amount that businesses or owners spend to invest in new equipment or expansions.

(G) government spending – this includes spending on new infrastructure like bridges and roads.

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AddedGDP= 56000-8000

AddedGDP= 48000

6 0
3 years ago
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