Marketers of snack foods decide to create humorous videos about their

If a factory produces 100 TV sets per year, each TV will be quite expensive to make. However, if a factory produces 20,000 TV se

ser-zykov [4K]

Answer:

The correct answer is D: economies of scale

Explanation:

Economies of scale are the diminished cost by companies when production becomes efficient. Companies can achieve economies of scale by increasing production and lowering costs. <u>This happens because fixed costs are spread over a larger number of goods.</u> There are implications in variable costs as well (for example in obtaining discounts by large purchases from suppliers). In general, the larger the scale, the more cost savings.

The cost per unit depends on how much the company produces. Larger companies can produce more by spreading the cost of production over a larger amount of goods. Specialization of labor and more integrated technology boost production volumes. Lower per-unit costs can come from bulk orders from suppliers, larger advertising buys, or lower cost of capital. Spreading internal function (for ex: accounting, information technology, and marketing) costs across more units produced and sold helps to reduce costs.

5 0

2 years ago

Which is an example of a document that needs to be saved for financial planning?

sesenic [268]

The right answer for the question that is being asked and shown above is that: "d. Grocery store receipt." an example of a document that needs to be saved for financial planning is that of a Grocery store receipt.<span>
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4 0

2 years ago

Atlantis Fisheries issues zero coupon bonds on the market at a price of $455 per bond. If these bonds are callable in 5 years at

igomit [66]

Answer:

The yield to call is 2.24%.

Explanation:

To calculate the yield to call, you can use the following formula:

YTC = (C + (CP - P) / t) / ((CP + P) / 2)

YTC= Yield to call

C= Annual Coupon: 0

CP= Call price of the bond: $509

P= Price of the bond: $455

t= time remaining until call date: 5

YTC= (0+(509-455)/5)/((509+455)/2)

YTC=(54/5)/(964/2)

YTC= 10.8/482

YTC= 0.0224= 2.24%

3 0

2 years ago

Read 2 more answers

The costs of organizing a corporation include legal fees, fees paid to the state of incorporation, fees paid to promoters, and t

Deffense [45]

Answer:

expensed as incurred

Explanation:

In accrual method of accounting, it is known that revenues are known when earned and expenses are known when incurred.

Expenses are simply said to be amounts incurred to bring about or generate revenue for an organization or firm, they include cost of goods sold, operating expenses, interest, and taxes.companies has different types of expenses incurred e. g overhead expenses.

5 0

2 years ago

For 2012, Everyday Electronics reported $22.5 million on sales and $18 million of operating costs (including depreciation). The

sammy [17]

Answer:

$1,575,000

Explanation:

Net operating profit before taxes:

= Sales - operating costs

= $22,500,000 - $18,000,000

= $4,500,000

Net operating profit after taxes:

= Net operating profit before taxes - Taxes

= $4,500,000 - ($4,500,000 × 0.35)

= $4,500,000 - $1,575,000

= $2,925,000

Economic Value Added:

= Net Operating Profit After Taxes - (Operating Capital × Weighted Average Cost of Capital)

= $2,925,000 - (15,000,000 × 9%)

= $2,925,000 - $1,350,000

= $1,575,000

3 0

2 years ago