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goblinko [34]
3 years ago
8

Ralph, a regional sales manager, was asked to analyze whether his company should launch a marketing effort to become Right Foods

' produce supplier this year. He found that Fresh Green Veggies currently has a supply contract with Right Foods that has three more years in its term; RightFoods would have to pay Fresh Green $0.5 million to break the contract. Also, Fresh Green has installed automated ordering/billing software in RightFoods' home office; RightFoods would have to spend $100,000 to replace it and retrain its staff. He concluded that RightFoods' _______ costs would be too high to seriously consider a change in supplier, thereby recommending that a marketing effort not be launched this year.
Business
1 answer:
podryga [215]3 years ago
4 0

Answer:

Switching cost

Explanation:

Switching cost is defined as the cost that is incurred in the course of changing from one supplier to another.Switching cost can be in monetary terms like compensation and termination fees and also in non monetary terms like time , effort and psychological stress.

In the given scenario , the defined activities of Right foods and the intention of Ralph clearly point out the process of potential switch of suppliers , even as the potential switching cost of $0.5 million for termination and $100,000 for replacing of software and retraining of staff are apparent.

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To make a decision resulting in good corporate citizenship, a business should evaluate the decision based on:
Sergio039 [100]

Answer:

All of them

Explanation:

When making decisions, a business should evaluate:

  • Legal implications of each decision : do our decisions comply with all applicable laws and regulation?
  • Public relations impact : how will the public feel about our decision?
  • Safety risks for consumers and employees: does it affect the safety and well being of our employees and customers?
  • Financial implications: does our decision benefit our business?
7 0
4 years ago
When a shift in ________________ occurs, rational expectations hold that its impact on output and employment will only be tempor
lora16 [44]

When a shift in Aggregrate Demand occurs, rational expectations hold that its impact on output and employment will only be temporary.

Aggregate demand is a term used in macroeconomics to describe the aggregate demand for domestic products such as consumer goods, services, and capital goods.

Aggregate demand shows the overall level of consumer demand for goods produced by the economy but does not show other important economic information. For example, high aggregate demand should indicate a healthy economy because you can produce and sell many commodities.

Aggregate demand is the total amount of goods and services in an economy that consumers are willing to pay over a period of time. Aggregate demand is calculated as the sum of personal consumption, capital spending, government spending, and the difference between exports and imports.'

Learn more about aggregate demand here:brainly.com/question/1490249

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4 0
2 years ago
Describe the advantage of increased global trade and competition on the u.S. Economy
Alinara [238K]

Answer:

The United States can specialise in producing goods and services which capitalise on its competitive advantages.

Explanation:

Increased global trade opens the United States (U.S) to international markets. This allows businesses in the U.S  to scale their operations so as to meet world demand. In doing so, these businesses may experience lower costs per unit due to increasing production capacity. This growth in operations could lead to increased competition from foreign businesses seeking to enter or operating in the U.S economy. Owing to this, higher levels of innovation and efficiency at firm level would be instituted so as to offer competitive prices.

5 0
4 years ago
On January 1, Mountbatten Corporation paid $18,000 for a year's advance rent on a building and recorded it as Rent Expense. The
chubhunter [2.5K]

Answer:

b. a credit to rent expense for $13,500

Explanation:

The computation is shown below:

Since there is an advance rent for $18,000 on Jan 1 and the adjusting entry would be made on March 31

So, the amount would be

= $18,000 - $18,000 × 3 months ÷ 12 months

= $18,000 - $4,500

= $13,500

This amount i.e $13,500 would be credited to rent expense

Hence, the second option is correct

5 0
3 years ago
Monetary policy could be procyclical if the Federal Reserve: a) is late recognizing that a recession has begun and conducts expa
gladu [14]

A) is late recognizing that a recession has begun and conducts expansionary monetary policy.

6 0
4 years ago
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