Answer:
B) existing carriers prevented from responding to new entrants' lower prices
Explanation:
The theory of contestable markets refers to markets with no entry or exit barriers. It was developed by William Baumol. In a contestable market, the number of participating firms is not important. For example, an oligopoly might exist, but if the entry barriers are low they will be forced to act competitively.
What makes existing firms competitive in this type of market, is the risk of new competitors entering the market and reducing their market share. That is why companies will try to make normal profits, because if they are too profitable, lots of potential competitors might enter the market and grab their customers.
To calculate the effect of the acceptance of the offer on net income, we need to calculate the profit from the opportunity.
The revenue per unit is shall be $30 and the relevant cost per unit shall be the variable cost $28
Hence the peofit per unit shall be = Revenue - Relevant cost = $30-$28 = $2 per unit
There are 3000 units, hence the net profit from this opportunity shall be = 3000 units * $2 = $6000
Hence, we can say that the profit shall increase by $6,000
You can use an autocratic type of leadership for quick decisions, you can consider input not necessarily using it. Be upfront about it.
CEO is higher than CFO.
Depending on the size of the business/corporation, a CEO can have higher or limited impact. CEO stands for Chief Executive Officer, who generally deal with a broad array of higher-level tasks. Another name for CEO can be known as 'president'.
CFO stands for Chief Financial Officer. If the name doesn't already give the definition of it up, the CFO takes care of the financial activities of the company. The CFO usually has a great contact with the president (CEO) of the organization to make sure that everything financial-wise is going alright.
To answer your question, CEO is higher than CFO. Chief Executive Officer runs the show while Chief Financial Officer takes care of anything financial.
Answer:
Predetermined manufacturing overhead rate= $10.6 per direct labor hour
Explanation:
Giving the following information:
Car Truck
Estimated wheels produced 36,000 11,000
Direct labor hours per wheel 1 3
Total estimated overhead costs for the two product lines are $731,400.
<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 731,400 / (1*36,000 + 3*11,000)
Predetermined manufacturing overhead rate= $10.6 per direct labor hour