Answer:
A. Quick Change's profit will increase while Fast Change's profit will fall.
Explanation:
Initially, both Quick Change and Fast Change have 4700 customers and the revenue per customer is $15. The total revenue for both businesses is,
The salary expense of Quick change is fixed at 47000. Thus, Quick Change's profit, initially, is:
The Salary expense of Fast Change is variable as it is calculated on the number of customers served at $10 per customer. So, Fast Change's initial profit is,
- 70500 - (10 * 4700) = 23500
When the number of customers change and Quick change gains 1000 more customers and reduced its price to 13, the new revenue and profit for Quick change will be,
- Revenue = 13 * 5700 = 74100
- The salaries expense is fixed so it will stay 47000
- Profit = 74100 - 47000 = 27100
- Thus the profit of Quick Change will increase to 27100 from 23500.
The new revenue and profit of Fast Change will be,
- Revenue = 15 * 3700 = 55500
- The new salary expense will be = 10 * 3700 = 37000
- The new profit will be = 55500 - 37000 = 18500
So Quick Change's profit has increased while Fast Change's profit has fallen.
Answer:
6,000 composite units
Explanation:
A B C Total
Selling price per unit 37 47 57
Less: Variable cost per unit <u>30</u> <u>31</u> <u>34</u>
CM per unit 7 16 23
Sales mix <u>3</u> <u>2</u> <u>1</u>
CM per sales mix <u>21</u> <u>32</u> <u>23</u> 76
Break even in composite unit = Fixed cost / CM per sales mix
Break even in composite unit = $456,000 / 76
Break even in composite unit = 6,000
Answer:
The correct option is: C. laissez-faire leadership
Explanation:
Leadership style is defined as the method by which a leader provides directions, instructions, implement plans, and motivate the followers or members.
The laissez-faire leadership style is one of the six styles of leadership. In this leadership, all the responsibilities, power and rights to make decisions regarding the competition of work belongs to all the members of the group.
<u>Therefore, Lucas’s group is experiencing</u><u> laissez-faire leadership.</u>