Answer:
For both 10,000 units and 20,000 units, the best alternative is Vendor B
Explanation:
Using the information provided in the question, we can write the following:
Annual Volume of 10,000 units
Internal Alternative 1
Variable costs = 170,000 (we multiply the variable cost per unit by total units)
Fixed costs = 20,000
Total costs = 370,000
Internal Alternative 2
Variable costs = 140,000
Fixed costs = 240,000
Total costs = 380,000
Vendor A
Total cost = 200,000 (we simply multiply the price by the quantity)
Vendor B
Total cost = 180,000
Vendor C
Total cost = 190,000
The cheapest option is Vendor B
Now for the 20,000 units:
Internal Alternative 1
Variable costs = 340,000
Fixed costs = 200,000
Total costs = 540,000
Internal Alternative 2
Variable costs = 280,000
Fixed costs = 240,000
Total costs = 520,000
Vendor A
Total cost = 400,000
Vendor B
Total cost = 360,000
Vendor C
Total cost = 380,000
Therefore, Vendor B is once again, the cheapest alternative.
Answer:
d) Competition
Explanation:
According to Rajasekar, J. (2014). <em>Factors affecting effective strategy implementation in a service industry</em> Strategic management process key factors are the role of leadership, the role of culture and the role of organizational structure in strategy implimentation.
On the other hand, "the absence of real competition is either not aware of the need to formulate a strategy and implement it (clarity of strategy) or believe there is no need to do so due to the business structure" (p.177)
Reference: Rajasekar, J. (2014). Factors affecting effective strategy implementation in a service industry: A study of electricity distribution companies in the Sultanate of Oman. International Journal of Business and Social Science, 5(9).
Answer: True
Explanation:
Something that has caught the attention of many has been how electronic money has been used in countries like Kenya and Somalia. A study has confirmed that the use of mobile money has reduced poverty in places like Kenya. Mobile money is defined as money where people can make financial transactions through their phones.
This type of activity has greatly influenced poverty reduction and the high rates that occurred when people had to send money over certain distances. In countries like Somalia, there are no longer any traces of physical money, everything is virtual. In this way, the country has achieved economic stability for years. People increasingly consume through their mobile phones, making in an easier way all kind of payments.
Answer: 12%
Explanation:
Stated interest rate is used in the calculation of the annual interest payment.
Interest payment = Face value of bonds * Stated interest rate
Annual Interest payment = Semi annual interest payment * 2
= 12,000 * 2
= $24,000
24,000 = 200,000 * Stated interest
Stated interest = 24,000 / 200,000
= 0.12
= 12%
Answer: Option (c) is correct.
Explanation:
Given that,
Price elasticity of demand = 0.5
Percentage increase in price = 8%
Price elasticity of demand = 
0.5 = 
Percentage change in quantity demanded = 0.5 × 8
= 4%
Therefore, if the price rises by 8% then as a result quantity demanded decreases by 4%.
