What factors, do you think determine how long a product will stay in the product life cycle

Assume France and Mali can both produce grain and dates, and that the only limited resource is the farming labor force, meaning

soldi70 [24.7K]

Answer:

In France:

Farmer can produce = 10 metric tons of grain or 5 metric tons of dates in a season

In Mali:

Farmer can produce = 10 metric tons of grain or 25 metric tons of dates.

(1) Mali has the absolute advantage in producing dates because Mali produces more metric tons of dates than France from the same level resources.

(2) No country has an absolute advantage in producing grain because same amount of grain were produced by both the countries with the same level of resources.

(3) Opportunity cost of dates in France = $\frac{10}{5}$

= 2 grain

Opportunity cost of dates in Mali = $\frac{10}{25}$

= 0.4 grain

Therefore, Mali's opportunity cost of producing dates is lower than France, so Mali has a comparative advantage in producing dates.

(4) Opportunity cost of grain in France = $\frac{5}{10}$

= 0.5 dates

Opportunity cost of grain in Mali = $\frac{25}{10}$

= 2.5 dates

Therefore, France's opportunity cost of producing grains is lower than Mali, so France has a comparative advantage in producing grains.

7 0

3 years ago

Suppose wood planks wood planks is a substitute substitute in production of wood beams wood beams. upper a decrease a decrease i

Juli2301 [7.4K]

Answer: Decrease, decrease

Explanation: Substitute goods are those goods that are used in place of each other. When the price of a substitute good falls, it becomes more attractive to the consumers. Here, wood planks and wood beams are substitutes to each other. So, when price of wood plank falls, demand for wood beams will decrease, shifting the demand curve to the left. As a result, of this the equilibrium price of wood beams and the quantity of wood beams will also decrease.

7 0

3 years ago

Read 2 more answers

Makers Corp. had additions to retained earnings for the year just ended of $261,000. The firm paid out $194,000 in cash dividend

gladu [14]

Answer:

a. $3.5 per share

b. $1.49 per share

c. $38.38 per share

d. 1.93 times

Explanation:

The computation is shown below:

a. Earning per share = (Net income) ÷ (Number of shares)

where,

Net income = Additions to retained earnings + cash dividends

= $261,000 + $194,000

= $455,000

So, the earning per share equal to

= $455,000 ÷ 130,000 shares

= $3.5 per share

b. Dividend per share = (Total dividend) ÷ (number of shares)

= ($194,000) ÷ (130,000 shares)

= $1.49 per share

c. Book value per share = (Total equity) ÷ (number of shares)

= ($4,990,000) ÷ (130,000 shares)

= $38.38 per share

d. Market to book ratio = (Market price per share) ÷ (book value per share)

= $74 ÷ $38.38

= 1.93 times

7 0

3 years ago

Jarrett Baker is the founder of an enterprise software company located in Chevy Chase, Maryland. By looking at the income statem

Westkost [7]

Answer and Explanation:

In this particular case, the working capital continues to fall and hits a value below zero otherwise the business would have a negative cash flow.

Company's assets are below its liabilities which including its current working capital would not be able to manage its debts. The Company would be faced with extreme difficulty in paying back its creditors.

If, as in the case at hand , the company continues to operate in low working capital and work capital declines over time, the company can encounter extremely serious financial problems.

Following Effects may include declining revenue from purchases, non-inventory management, or issues with the specific total accounts receivable.

3 0

3 years ago

Contribution Income Statement and Cost-Volume-Profit Graph Picnic Time produces a picnic basket that is sold for $100 per unit.

Ira Lisetskai [31]

Answer:

Graph Picnic Time

Contribution Income Statement

For the Month of July

Sales $400,000

Less variable costs:

Direct materials $100,000

Direct labor 60,000

Manufacturing overhead 20,000

Selling and administrative 16,000

Total variable costs $196,000

Contribution margin $204,000

Less fixed cost:

Manufacturing overhead $36,000

Selling and administrative 68,000

Total fixed costs $104,000

Profit $100,000

Explanation:

a) Data and Calculations:

Selling price per picnic basket = $100

July Production and sales = 4,000 baskets

Variable Costs per Unit:

Manufacturing:

Direct materials $25

Direct labor 15

Manufacturing overhead 5

Total $45

Selling and administrative 4

Total $49

Fixed Costs per Month

Manufacturing overhead $36,000

Selling and administrative 68,000

Total $104,000

Contribution Income Statement

For the Month of July

Sales $400,000 ($100 * 4,000)

Less variable costs:

Direct materials $100,000 ($24 * 4,000)

Direct labor 60,000 ($15 * 4,000)

Manufacturing overhead 20,000 ($5 * 4,000)

Selling and administrative 16,000($4 * 4,000)

Total variable costs $196,000

Contribution margin $204,000

Less fixed cost:

Manufacturing overhead $36,000

Selling and administrative 68,000

Total fixed costs $104,000

Profit $100,000

8 0

3 years ago