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lora16 [44]
3 years ago
11

Explain one opportunity cost of a private limited company deciding to award a pay increase to

Business
1 answer:
Anuta_ua [19.1K]3 years ago
4 0

Answer:

see below

Explanation:

Opportunity costs represent the sacrificed benefits in a decision. when choosing between alternatives, people can only enjoy the benefits from the chosen option. The advantages from the other alternatives not selected are foregone. The missed benefits from the options not selected are the opportunity costs.

Awarding employees with a pay increase will cost the private limited company money. The company could have spent that money in different other ways. For example, instead of awarding a pay increase, the company could have invested in new modern machinery, invested in shares of another company, or opened another branch. Assuming buying shares was the next best alternative to awarding pay rise, the missed dividends, and capital gains from shares not bought is the opportunity cost.

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Dybala Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Sel
Tanya [424]

Answer:

  • Increase of $8,900

Explanation:

  • It means that if the investment in advertising generate an increase of 330 units of sales it would have an increase in the income of the company of $8,900.

  • Initial Situation

Dybala  

5,320      Quantity

$ 125,0     Unit Price

$ 665,000 Total Net Sales

100%        Percentage

-$ 75,0     Unit Variable Cost

-$ 399,000 TOTAL Variable Cost

60%         Percentage

$ 50,0      Unit Cont Margin

$ 266,000 Contributing Margin

40%                % Contribution

-$ 240,000 Anual Fixed Costs

$ 4,9        Unit Segment Margin

$ 26,000 Segment Margin

4%            % Contribution

  • New Situation with the incremental sales.

Dybala  

5.650       Quantity

$ 125,0     Unit Price

$ 706.250 Total Net Sales

100%        Percentage

-$ 75,0      Unit Variable Cost

-$ 423.750 TOTAL Variable Cost

60%         Percentage

$ 50,0      Unit Cont Margin

$ 282.500 Contributing Margin

40%         % Contribution

-$ 247.600 Anual Fixed Costs

$ 6,2        Unit Segment Margin

$ 34.900 Segment Margin

5%             % Contribution

5 0
3 years ago
Which potential stakeholders are a list in Proctor and Gamble’s purpose statement
sp2606 [1]

P&G's Purpose Statement is as follows

We will provide branded products and services of superior quality and value that improve the lives of the world’s consumers, now and for generations to come. As a result, consumers will reward us with leadership sales, profit and value creation, allowing our people, our shareholders and the communities in which we live and work to prosper.

Stakeholders:

  • consumers
  • employees
  • shareholders
  • communities
3 0
3 years ago
1. Contrast traditional economies, command economies, and economies.
Dima020 [189]

Answer:

1. A traditional economy is a system that relies on customs, history, and time-honored beliefs.2 A market economy is a system where the laws of supply and demand direct the production of goods and services. A command economy is where a central government makes all economic decisions.

2. Gross domestic product (GDP) is the monetary value of all finished goods and services made within a country during a specific period. GDP provides an economic snapshot of a country, used to estimate the size of an economy and growth rate. GDP can be calculated in three ways, using expenditures, production, or incomes.

3. Globalization means the speedup of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet. One of the effects of globalization is that it promotes and increases interactions between different regions and populations around the globe.

4 0
3 years ago
External equity refers to ________. A. how a job’s pay rate in one company compares to the job’s pay rate in other companies B.
Lerok [7]

Answer: how a job’s pay rate in one company compares to the job’s pay rate in other companies

Explanation: External equity refers to the situation when a company's pay rate differs from the market's pay rate to the employees of the organisation. It is also termed as matching strategy.

It is considered as a major factor in employing and retaining sufficient employees in the organisation. Therefore, lesser the external equity the better it is.

From the above explanation we can conclude that the correct option is A.

4 0
3 years ago
A company manufactures a product using machine cells. Each cell has a design capacity of 250 units per day and an effective capa
Blababa [14]

Answer:

1.90

Explanation:

Calculation for how many cells that the company require to satisfy predicted demand

Using this formula

Numbers of cell=Projected annual demand/Annual capacity per cell

Based on the information given we were told that Annual demand is 50,000 units in which it is forecasted that within 2 years it will tripple which means that Annual demand will be calculated as:

Projected annual demand = 50,000*2 years

Projected annual demand=100,000

Let plug in the formula

Numbers of cell=100,000÷(220 units/day × 238 days/year)

Numbers of cell=100,000÷52,360

Numbers of cell=1.90

Therefore the amount of cells that the company require to satisfy predicted demand will be 1.90

6 0
3 years ago
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