Answer: Turn down the acquisition offer and prepare to resist a hostile takeover.
Explanation:
Since Johnson analysed the past performance of Openlane hardware and found out that past performance, conducting focus groups, and interviewing Openlane employees, Johnson concludes that the company has poor profit margins, sells shoddy merchandise, and treats customers poorly, then Johnson and Conecom Hardware should turn down the acquisition offer and prepare to resist a hostile takeover.
In this case, the merge between the companies will have a negative impact on Johnson and Conecom hardware due to the fact that the company has a bad reputation already and this can have an effect on Conecom. Therefore, the acquisition offer should be turned down.
Answer:
a. The sale of a good by a foreign supplier in another country at a price below that charged by the supplier in its home market.
Explanation:
In some cases we find dumpers in the an economic environment. There main objective is drive out competitors since they cannot sell below normal selling price.
The sale of good by the foreign supplier in another country below the normal price would create a monopolistic situation as they will be able to control the price and quality of the product.
For example, 10KG of wheat are sold normally for $5 locally in Country A by a supplier firm and are sold the same amount in Country B.
Then the supplier firm from Country A exports to Country B and decides to sell its 10KG of wheat for $2 in the foreign country. This action is called dumping or price dumping.
Answer:
1.97%
Explanation:
The formula to calculate the holding period return is:
HPR=(Income generated+(ending value-initial value)/Initial value)*100
Income generated= $24
Ending value= $884.89
Initial value= $891.26
HPR=(24+(884.89-891.26)/891.26)*100
HPR=(24+(-6.37)/891.26)*100
HPR=(17.63/891.26)*100
HPR=0.0197*100
HPR= 1.97%
According to this, the holding period return (HPR) on the bond as of today is 1.97%.
Answer:
Variable costs
Explanation:
Variable costs are dependent on production output. The variable cost of production is a constant amount per unit produced. As the volume of production and output increases, variable costs will also increase.
Answer:
Capacity may be expanded or contracted as necessary without affecting fixed costs.
Explanation:
If a firm accepts a special-order, it will do so because the increased production costs will be lower than the extra revenue from the sale.
Production costs rise because special-order decisions usually involve large-volume sales at a lower price. This higher output requires the use of more inputs, and those inputs are variable costs.
For example, suppose a car factory sales on average 1,000 cars per month. The factory has the right amount of workers, and uses the right amount of energy, to produce 1,000 cars per month. The next month, a client order 5,000 cars in just one month, and the factory accepts the special-order. Variable costs energy and wages will rise.
