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zepelin [54]
3 years ago
8

A company produces 500 microwave ovens per month, each of which includes one electrical circuit. The company currently manufactu

res the circuits in-house but is considering outsourcing the circuits at a contract cost of $28 each. Currently, the cost of producing circuits in-house includes variable costs of $26 per circuit and fixed costs of $7,000 per month. Assume the company could eliminate all fixed costs by outsourcing and that there is no alternative use for the facilities presently being used to make circuits. If the company outsources, operating income will
Business
1 answer:
Soloha48 [4]3 years ago
6 0

Answer:

company outsources, operating income will decrease by 1000

Explanation:

given data

microwave ovens = 500 per month

cost = $28 each

variable costs = $26 per circuit

fixed costs = $7,000 per month

solution

we know here Incremental savings is

Incremental savings =  microwave ovens × variable costs

Incremental savings =  500 × 26 = 13000

and

Incremental cost is

Incremental cost = microwave ovens × cost

Incremental cost = 500 × 28 =  14000

so

company operation income = Incremental saving - Incremental cost

company operation income = 13000 - 14000 = -1000

so company outsources, operating income will decrease by 1000

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Answer:

Marginal utility of each becomes negative

Explanation:

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The person keeps on consuming the item until the level of marginal utility for the product becomes less than zero.

That is there is no satisfaction anymore in consuming the product.

In the given instance Thomas will continue to consume both candy bars and ice cream until the level of satisfaction (marginal utility) is now less than zero or negative

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3 years ago
The first part of setting strategic direction for an organization is to analyze the external and internal environments by prepar
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Answer:

Vision Statement

Explanation:

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Vision Statement is a important point in strategical  planning. It tells what an organization intended to achieve or we can say it highlight the objective of the organization .

Vision Statement should we s<u>hort , simple and clearly specified.</u> It plays an i<em>mportant role</em> in an organization .    

3 0
3 years ago
___________business that is carried out across national borders, including international trade, foreign manufacturing, and the g
maksim [4K]

Answer:

International business is the correct answer.

Explanation:

  • International business includes all economic activities that take place for the movement of resources, services, goods, people, thoughts, and technologies across national borders.
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5 0
3 years ago
Instead of assigning access for each user account individually, ________ is a more efficient and easier-to-manage approach. Cent
katovenus [111]

Answer:

Role-Based Access Control (RBAC)

Explanation:

Instead of assigning access for each user account individually, Role-Based Access Control (RBAC) is a more efficient and easier-to-manage approach.

In computer systems security, role-based access control or role-based security is an approach to restricting system access to authorized users. <u>It is used by the majority of enterprises with more than 500 employees,</u> and can implement mandatory access control or discretionary access control.

Hence, access need not be assigned for each user individually.

4 0
3 years ago
Suppose the government enacts a price floor on milk, which leads to a surplus in the market. How will the government then attemp
Anna [14]

Answer:

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Explanation:

Unregulated markets are at equilibrium where : market demand , market supply are equal ; and downward sloping demand curve , upward sloping supply curve intersect.

Price Floor is minimum mandated price set by government, below which a good can't be sold in the market. It is usually set above equilibrium price, to protect interest of sellers. Example : Minimum Support Price as minimum agricultural  goods price to protect interest of farmers, Given Milk Price floor case.

Price Floor creates artificially higher prices ; so increases supply, decreases supply & hence creates Excess Supply. Government can solve this excess supply by preserving stock supply for contingent times , eg -  maintaining buffer stock. If the good is of perishable nature, as given milk case : it should be processed further to increase its shelf life, eg - cheese, such that the stock supply can be released at a slower pace.

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