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3 years ago

A demand for a product or resource because of its contribution to the final product is called

Business

1 answer:

tino4ka555 [31]3 years ago

8 0

Answer:

Derived demand

Explanation:

Derived demand occurs when a good is requested not for benefits they directly provide, but for their contribution to another product.

For example capital, land, labour, and raw materials are demanded for their role in producing a final product.

So they can be seen as goods that have derived demand.

When they demand for the final product increases the good that has derived demand also increases, and vice versa.

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Excerpts from Dowling Company's December 31, 2018 and 2017, financial statements and key ratios are presented below (all numbers

mylen [45]

Answer:

Option (D) is correct.

Explanation:

Return on equity:

= Return on assets × Equity multiple

= 10.3% × 2.36

= 24.308%

Profit margin:

= Net income ÷ Sales

= $20 ÷ $115

= 17.39%

Average total assets is calculated as follows:

Return on assets = Net income ÷ Average total assets

10.3% = $20 ÷ Average total assets

Average total assets = $194.17

6 0

3 years ago

In most business situations where firms compete, often they can escape the prisoner's dilemma and reach the most profitable outc

Lostsunrise [7]

Answer:

The correct answer here is option C.

Explanation:

In real life business situations the firms are able to avoid prisoner's dilemma and reach the most profitable income because the games are repetitive and goes on continuously in the market or economy. The other firms in the market can adopt a retaliation strategy if a firm does not cooperate.

In order to avoid such situation the firms generally cooperate and thus are able to escape Prisoner's dilemma.

4 0

3 years ago

A cost is $11,000 at 1,000 units, $12,000 at 2,000 units, and $13,000 at 3,000 units. Using the high-low method, how much is the

Misha Larkins [42]

Answer:

Fixed costs= $10,000

Explanation:

Giving the following information:

Highest activity cost= $13,000

Highest activity= 3,000 units

Lowest activity cost= $11,000

Lowest activity= 1,000 units

<u>To calculate the unitary variable cost and total fixed cost, we need to use the following formulas:</u>

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (13,000 - 11,000) / (3,000 - 1,000)

Variable cost per unit= $1

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 13,000 - (1*3,000)

Fixed costs= $10,000

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 11,000 - (1*1,000)

Fixed costs= $10,000

6 0

3 years ago

William Corporation has a contract with the labor union which guarantees its workers pay for at least 40,000 hours every quarter

geniusboy [140]

Answer:please refer to the explanation section

Explanation:

direct labor hours = 39000 hours

Finished Goods = 13000 units

direct labour hours per unit = 3 hours

Direct Labor cost per hour = $12

Direct Labor Cost = 13000 units x 3 hours x $12 = $ 468000.

William corporation will pay $480000 (40000 x $12) as per the contract agreement with labour union but Direct Labor cost to be capitalized on Cost of Finished Goods is $ 468000. The cost of $ 12000 should be treated as an expense

3 0

4 years ago

Parisian Cosmetics Company is planning a one-month campaign for September to promote sales of one of its two cosmetics products.

leonid [27]

Answer:

Explanation:

1.) Promote Moisturizer or Promote Perfume

21-Aug

Promote Moisturizer Promote Perfume Differential Effect

(Alternative 1) (Alternative 2) (Alternative 2)

Revenues 22,000 units x $55.32 = $1,217,040 20,000 units x $59.64 = $1,192,800 ($24,240)

Costs:

Direct Materials 22,000 units x $9.05 = $199,100 20,000 units x $14 = $280,000 ($80,900)

Direct Labor 22,000 units x $3.06 = $67,320 20,000 units x $4.93 = $98,600 ($31,280)

Variable Factory Overhead 22,000 units x $3.04 = $66,880 20,000 units x $4.93 = $98,600 ($31,720)

Variable Selling expenses 22,000 units x $16.02 = $199,100 20,000 units x $14.97 = $299,400 $53,040

Sales Promotion $136,430 $136,430 $0

Income (Loss) $394,870 $279,770 ($115,100)

Alternative 1 income = $394,870

Alternative 2 income = $279,770

Alternative 3 income = $115,100

2.) The company should promote moisturizer (Alternative 1)

3.) The decision of the manager is absolutely wrong as the manager is of the view that operating income will increase by $82,170 because he has considered the fixed expenses too which are not going to occur as we can see in the question. Hence the fixed expenses is irrelevant to cost to choose the alternative. As per the differential analysis, Alternative 1 i.e to sale moisturizer extra with the help of the promotion expenses.

4 0

4 years ago