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ArbitrLikvidat [17]
3 years ago
6

Advantages of profit maximization​

Business
2 answers:
DedPeter [7]3 years ago
5 0
Profit can be used to pay higher wages to owners and workers. ...
Profit can be used to invest in research & development. ...
Profit enables the firm to build up savings, which could help the firm survive an economic downturn.
Evgesh-ka [11]3 years ago
3 0

Answer:

Improved ratios will enhance investor's confidence and therefore share price.

Access to a wider range of finance because of a better image to creditors.

Long-term profits will improve liquidity and cash flows, which can be used for future investments, dividends, loan payments or retained.

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Ortega Industries manufactures 19,900 components per year. The manufacturing cost of the components was determined to be as foll
professor190 [17]

Answer: Increased profit as opposed to making them internally.

Explanation:

Make or buy decisions are management decisions as to whether production components should be produced internally or outsourced.

Buy decision

Unit price= $34

Total unites= 19900

Total cost= $34*19900=$676,600

Make decision

$

Direct materials 178,000

Direct Labor. 380,000

Variable overhead. 104,000

Relevant fixed overhead 260,000

Total $922,000

Unit price for make=922000/19900

Unit price=$46.33

Since buying outside is more cheaper than producing internally, it will be more profitable to outsource(buy).

6 0
3 years ago
Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses 20 pounds of pepperoni each day in preparing pizzas. Order costs for
marysya [2.9K]

Answer: 40 pounds

Explanation:

Given the following :

Ordering cost = $10 / order

Carrying cost = 4 cents per pound per day

Cost of pepperoni = $3 per pound

Daily demand = 20 pounds

Order quantity = 80 pounds

Average inventory level at the time in which 80 pounds of pepperoni was ordered is given as

Average inventory level is given as :

Order quantity / 2

80 pounds / 2 = 40 pounds

6 0
3 years ago
Impact of clearly defined KPI's
uysha [10]

Answer:

KPIs are the key targets you should track to make the most impact on your strategic business outcomes. KPIs support your strategy and help your teams focus on what's important. An example of a key performance indicator is, “targeted new customers per month”.

Explanation:

here is your answer if you like my answer please follow

3 0
2 years ago
A department store, pressured to meet year-end targets, liquidated a large amount of merchandise at low prices even though it wa
brilliants [131]

Answer:

Sales Growth pricing objective

Explanation:

Since prices are being reduced then the aim will not be profitability, neither was it mentioned that it was because of competitors but it was done in the bid to meet internalsales targets.

This is an example of which pricing objective of Sales Growth:

Sales Growth’s objective is to increase sales volume. <u>It sets its price in such a way that more and more sales can be achieved.</u> It is assumed that sales growth has direct positive impact on the profits. <u>So, pricing decisions are taken in way that sales volume can be raised. Setting price, altering in price, and modifying pricing policies are targeted to improve sales.</u>

4 0
3 years ago
1.Describe the role that workers play in the game of economics.
antoniya [11.8K]
In the game of economics, workers play a double role, functioning as both consumers and producers. The workers role is unique in the game of economics since they are directly involved. They are the ones who will manufacture, market, sell the products in an economy.
8 0
3 years ago
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