The main reason for business services are disproportionately focused in global cities is because of the large ammount of headquarters for multinational companies. Another reason is that there is a large marketing and advertisement that are concentrated in major cities. A third factor is that stocks are brought and sold mostly in those cities. That is a problem cause many of those multinational companies are not interested in other types of cities to run their business.
Answer:
The increase in operating profit is $1,829.00.
Explanation:
The rise or fall in the operating income:
= Purchase unit × ( offer price- direct material- direct labor- variable overhead)
The rise or fall in the operating income: = 1550× (2 - 0.26 - 0.4 - 0.16)
The rise or fall in the operating income: = $1829
Therefore the profit will increase by $1829
Here all the fixed cost is not considered because it is a sunk cost and variable and administrative expenses are also not considered because these costs are not going to be incurred for offer.
Answer:
-3.24
Explanation:
Income-elasticity of demand is given as = % change in quantity demanded / % change in income.
Therefore, since Blake stopped eating generic chips, his change in demand of generic chips is given as
0-2 = 2.
Midpoint is (0-2)/2 = -1
Therefore, % change in quantity demanded for generic chips is given as zero, since Blake stopped taking it completely.
Blake's change in income is given as $8 to $15
% change in income = ($15-$8/$8)×100
7/8 × 100
% change in income = 87.5%
Midpoint of income is $8+$15/2 = $11.5
Income elasticity of demand for generic chips would be = -2/0.609 = -3.284 approximately -3.24
Explanation:
SWOT analysis can be defined as a strategic planning tool used to assist organizations in identifying the strengths, weaknesses, opportunities and threats that make up their micro and macro environment.
The importance of using this tool is that it allows an analysis of the internal and external environments in an easy and effective way, and helps the company to develop strategies to achieve goals, to know the competitors, to know their strengths and weaknesses, to implement a system of continuous improvement, etc. This is a tool that assists decision making and influences the achievement of organizational effectiveness.
Answer:
Holmes should sell process the product further, because the profit if process further is higher than sell product now.
Explanation:
Net profit if sell product now is $37,500 ( = sales to another manufacturer $97,500 – already spent $60,000)
Sales as in process further/ Incremental Accounting
Sales: $695,125 (=$415 x 1,675 units)
Additional Process costs: $485,570 (=$290 x 1,675 units)
Net profit if process further = total sales $695,125 – already spent $60,000 – additional process cost $485,570 = $149,555, higher than profit $37,500 if sell now.