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3 years ago

When a proposed merger between two companies is reviewed by the government, the relevant market is defined by ________.

Business

1 answer:

sukhopar [10]3 years ago

3 0

Answer:

whether or not there are close substitutes for the products of the two firms

Explanation:

The law watches closely for mergers that actively seek to inhibit or totally annihilate competition in the market which will be harmful for consumers. Mergers such as horizontal mergers, vertical mergers tend to bring about a monopoly whereby sellers aim to coordinate in a such a way that there is an agreement amongst them and profit is ensured while market becomes less efficient.

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Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one uni

Bond [772]

Answer:

1. Material Variances

Material Price Variance = $3,000 F

Material Quantity Variance = $4,000 U

2. Labor Variances

Labor Rate Variance = $1,425 U

Labor Efficiency Variance = $900 F

Explanation:

Provided information we have,

Direct Materials

Standard Quantity = 4.6 pounds

Standard Rate = $2.50 per pound

Direct Labor

Standard Hours = 0.2 hour per unit

Standard Rate = $18 per hour

Actual Materials

Actual Quantity = 20,000 pounds

Actual Rate = $2.35 per pound

Actual Labor

Labor Hours = 750 hours

Labor Cost = $14,925

Labor rate = $\frac{14,925}{750} = $19.9 per hour$

Actual Units produced = 4,000

1. Material Variances

$Material\ Price\ Variance = (Standard\ Price - Actual\ Price) \times Actual\ Units$

= ($2.50 - $2.35) $\times$ 20,000 pounds

= $3,000

As the actual rate is less than standard rate the variance is favorable.

$Material\:Quantity\ Variance = (Standard\ Quantity - Actual\ Quantity) \times Standard\ Rate$

Standard Quantity = 4,000 $\times$ 4.6 = 18,400 pounds

Material Quantity Variance = (18,400 - 20,000) $\times$ $2.50

= - $4,000

As the actual raw material quantity used is higher than standard raw material quantity the variance is unfavorable.

2. Labor Variances

$Labor\ Rate\ Variance = (Standard\ Rate - Actual\ Rate) \times Actual\ Hours$

= ($18 - $19.9) $\times$ 750 = - $1,425

As actual rate is higher than standard rate thus the variance is unfavorable.

$Labor\ Efficiency\ Variance = (Standard\ Hours - Actual\ Hours) \times Standard\ Rate$

Standard Hours = 4,000 $\times$ 0.2 = 800

Labor Efficiency Variance = (800 - 750) $\times$ $18

= $900

As the Standard Hours is more than Actual Hours the variance is favorable.

1. Material Variances

Material Price Variance = $3,000 F

Material Quantity Variance = $4,000 U

2. Labor Variances

Labor Rate Variance = $1,425 U

Labor Efficiency Variance = $900 F

6 0

3 years ago

Suppose the price of apples goes up from $20 to $22 a box. In direct response, Goldsboro Farms supplies 1,200 boxes of apples in

OLga [1]

Answer:

Explanation:

Price elasticity measures the responsiveness of the quantity demanded or supplied of a good to a change in its price. It is computed as the percentage change in quantity demanded—or supplied—divided by the percentage change in price.

Elasticity can be described as elastic—or very responsive—unit elastic, or inelastic—not very responsive.

Elastic demand or supply curves indicate that the quantity demanded or supplied responds to price changes in a greater than proportional manner.

An inelastic demand or supply curve is one where a given percentage change in price will cause a smaller percentage change in quantity demanded or supplied.

Unitary elasticity means that a given percentage change in price leads to an equal percentage change in quantity demanded or supplied.

8 0

2 years ago

You purchase one IBM July 125 call contract for a premium of $5. You hold the option until the expiration date when IBM stock se

Trava [24]

Answer:

Loss of $500

Explanation:

Given that

Stock price = 123

Strike price = 125

Premium price = 5

Recall that

Long call profit = (MAX (stock price - strike price, 0) - premium per share

Thus,

Long call profit = Max [0, ($123 - $125)(100)] - $500

= - $500.

Therefore, the negative sign in front indicates a loss of $500

3 0

3 years ago

Radar Company sells bikes for $490 each. The company currently sells 4,300 bikes per year and could make as many as 4,620 bikes

Karo-lina-s [1.5K]

Answer:

Radar's additional income for accepting the order is calculated as follows:

Sales - 320 x $460 = $147,200

less Cost of Sales = 320 x $180 + $48,000 = $105,600

Additional Income = $41,600

Explanation:

The additional income of $41,600 is $147,200 - $105,600, which is the result of deducting cost of sales from Sales.

The cost of sales includes the variable cost per bike, including the incremental fixed costs ($48,000) to make this order.

To make a decision whether to accept an order or not, the company needs to consider all variable costs, including the incremental fixed costs. The resulting additional income is what is available to offset the fixed costs.

8 0

3 years ago

_____________ are a form of financial instrument through which corporations and governments borrow money from financial investor

makkiz [27]

Answer:

Bonds

Explanation:

Bonds are financial instruments that are used to obtain funding from the bond holders. It is a debt security that is issued by a government or corporation to investors.

When investors buy bonds the funds are used by governments for its operations and various projects. Interest is paid on the bonds.

Bonds can be municipal bonds or corporate bonds.

Unlike shares bonds does not grant the holder an equity or ownership stake in the company, rather it grants a creditor stake.

3 0

3 years ago