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bearhunter [10]
3 years ago
7

Alpha Inc. and Beta Co. are sheet metal processors that supply component parts for consumer product manufacturers. Alpha has bee

n in business since 1985 and is operating in its original plant facilities. Much of its equipment was acquired in the 80s and 90s. Beta Co. was started two years ago and acquired its building and equipment then. Each firm has about the same sales revenue, and material and labor costs are about the same for each firm.
What would you expect Alpha’s ROI to be relative to the ROI of Beta Co.? Explain your answer.
What are the implications of this ROI difference for a firm seeking to enter an established industry?
Business
1 answer:
Dmitriy789 [7]3 years ago
5 0

Answer: A. Higher

B. The implication for Beta Co. is that because of its lower ROI, its ability to raise capital will be reduced.

Explanation:

a. What would you expect Alpha’s ROI to be relative to the ROI of Beta Co.? Explain your answer.

In this case, Alpha’s ROI to be relative to the ROI of Beta Co. will be higher. Since Alpha's investment cost is lower when compared to that of ‘Beta Co. while both companies have thesame operating income, then the return on investment of Alpha will then be higher than that of Beta due to the lower investment cost that Alpha incurred.

b. What are the implications of this ROI difference for a firm seeking to enter an established industry?

The implication for Beta Co. is that because of its lower ROI, its ability to raise capital will be reduced.

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David owns a footwear chain. His stores attract many customers because they sell various footwear brands. Thus, David has entere
Sergeu [11.5K]

Answer:

B.  trademark franchise

Explanation:

-Business format franchise is when the franchisee gets a business with the name and trademark of the franchisor and has to follow the guidelines established, for example, a restaurant's franchise.

-Trademark franchise is when the franchisee gets the permission to distribute the product but uses its business format.

-Manufacturing franchise involves the permission to produce a product to sell it to the customer or retailers.

-Management franchise requires that the owner supervises the operations but he/she doesn't have to be in the daily activities. The franchisee should be someone with management experience to handle the business successfully.

According to this, the answer is that the franchise model that David's business follow is trademark franchise because he gets the manufacturers permission to sell their products on his own footwear chain.

4 0
3 years ago
What do you call a bear with out ears.​
Ann [662]

I don't know can you tell

6 0
3 years ago
In one hour of labor input, South Korea can produce either 100 computer chips or 50 bed linens. In the U.S., in one hour of labo
tangare [24]

Answer:

b. The U.S. has an absolute advantage in computer chips manufacturing.

Explanation:

South Korea's opportunity cost of producing 1 bed linen = 100/50 = 2 computer chips. Where, US' opportunity cost of producing 1 bed linen = 150/100 = 1.5 computer chips.

As US' opportunity cost of producing 1 bed linen is less than that of South Korea's , Therefore, US has comparative advantage in production of bed linen and south korea will have comparative advantage in production of the other good i.e. computer chips.

Now looking at the absolute advantage, US has absolute advantage in production of both goods i.e. Bed linen and computer chips, because using same one hour of labor input, US can produce more bed linen and computer chips than South korea does.

8 0
3 years ago
Samuel, Inc. has Accounts Receivable of $110,000 and an Allowance for Doubtful Accounts of $17,000. If it writes-off a customer
Allushta [10]

Answer:

the net account receivable is d.  $93,000

Explanation:

The computation of the net account receivable is shown below:

= (Account receivable - written off amount) - (Allowance for doubtful accounts - written off amount)

= ($110,000 - $1,700) - ($17,000 - $1,700)

= $108,300 - $15,300

= $93,000

Hence, the net account receivable is $93,000

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

7 0
3 years ago
A sales invoice included the following information: merchandise price, $4,500; transportation, $300; terms 1/10; free on board (
Ulleksa [173]

Answer:

Cash received = $4161

Explanation:

given data

merchandise price =  $4,500

transportation=  $300

returned = $600

to find out

amount of cash received by seller

solution

we know here that free on board shipping point

so buyer to pay the shipping charge that is paid by seller

it is also add in invoice  and Cash discount not applicable on transport cost

so

Cash received by seller  is

Cash received = (4,500 - 600) × 99% + 300

Cash received = 3861 + 300

Cash received = $4161

5 0
3 years ago
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