The risks of foreign outsourcing is that they could stop trading with you.
Answer:
The correct answer here is B) average cost must be increasing.
Explanation:
Here for finding out whether the average cost would increase or decrease , we have to see the relationship between average cost and marginal cost , where if marginal cost is less than average cost than the average cost would decrease ,and when the average cost is less than marginal cost that means the average cost would increase. Here as per given information-
Average cost = Total cost / Quantity
where Total cost = Fixed cost + Variable cost
Total cost = 600 + 100
= 700
Average cost = 700 / 20
= 35.
So here the marginal cost is greater than average cost that , means the average cost will be increasing.
Answer:
The incorrect statement is letter "B": If a firm is currently holding a lot of assets in cash, it would benefit from inflation.
Explanation:
Inflation is the economic phenomenon that takes place in the market as a result of a rise in the overall prices. One of the direct causes of inflation is a surplus in demand since it provokes firms to increase the price of the goods or services they offer in an attempt to decrease demand levels but, in given scenarios, the demand continues increasing.
Among the effects of inflation, <em>we can identify the decrease of individuals' and organizations' buying power. The value of money decreases making it inconvenient to have cash handy for both individuals and companies.</em>
Answer:
Effect on income= -$22,000 decrease
Explanation:
Giving the following information:
Contribution margin $30,000
Fixed expenses ($40,000)
Net operating loss ($10,000)
<u>If a product line provides a positive contribution margin, generally it is convenient to continue production, at least in the short term.</u>
<u></u>
Effect on income= avoidable fixed costs - contribution margin
Effect on income= 8,000 - 30,000
Effect on income= -$22,000 decrease
Answer:
The opening balance is the amount of money that is available in the bank at the beginning of each financial period, such as the start of each month or each year. It is the amount brought forward and first figure entered in the account at the beginning of each period. When the amount is newly opened, the opening balance is the first amount entered in the account
Therefore, the opening balance is the difference between the closing balance and the deposit less the withdrawals within a period
Closing Balance = The Opening Balance + Total Income - Total Expense
Therefore;
<em>The Opening Balance = Closing Balance - Total Income + Total Expense</em>
Explanation: