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3 years ago

Low volume production has the following implication on the operations of an organisation.’ Choose the correct option:

Business

1 answer:

lesya [120]3 years ago

6 0

Answer:

(i) High unit costs

Explanation:

A low production volume results in high per-unit cost. The per-unit cost is derived by dividing the total cost by the total output. Total cost is a combination of variable costs and fixed costs. While fixed cost remains constant in the period, variable costs change with the production volume.

The fixed cost element is what makes a low volume production have a high per-unit cost. Since fixed costs are constant, a low quantity output means that a few units will share the fixed costs. The result is a high proportion of fixed costs per unit. The high per-unit fixed element cost makes a low volume output expensive compared to when the fixed costs are shared among many units.

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Dealer markets are characterized by: no time-consuming search for a fair deal. a guarantee of order fulfillment because the deal

MAVERICK [17]

Answer:

all of the above characterize dealer markets.

no time-consuming search for a fair deal.
a guarantee of order fulfillment because the dealer holds an inventory of securities.
improved market efficiency because dealers provide continuous bid and ask prices for securities.

Explanation:

A dealer market is a market where financial dealers post their trading prices (the buying and selling price of stocks, bonds, foreign currency, etc.). The largest dealer market in the US is Nasdaq where stocks are traded electronically. The main difference between a dealer market and a regular auction market like the NYSE is that no bidding takes place since operations are done in a split second.

3 0

3 years ago

Hugh has the choice between investing in a city of heflin bond at 6.60 percent investing in a surething bond at 10.00 percent. a

butalik [34]

Answer: Surething Inc, needs to issue bonds with 11% interest rate in order to make Hugh indifferent between investing in two bonds.

We arrive at the answer in the following manner:

The City of Helfin bonds are municipal bonds and hence they are tax free. This means that Hugh will get an after - tax return of 6.6%.

The bonds of Surething Inc offering a 10% interest, however are taxed at 40%. So, the current after-tax returns of the bond is:

$After - tax return= Pre- tax return * (1 -tax rate)$

$After-tax return= 0.1 * (1-0.4)$

Current after tax return = 0.06 or 6%

However Hugh will be indifferent to investing in these two bonds only if they offer the same after-tax return of 6.6%.

Given this, we can calculate the indifference rate as follows:

$After - tax return= Pre- tax return * (1 -tax rate)$

$0.066= Pre- tax return * (1 -0.4)$

$\frac{0.066}{0.6}= Pre-tax return$

Pre-tax return = 0.11 or 11%.

8 0

3 years ago

foutz corporation has entered into a 8 year lease for a piece of equipment. the annual payment under the lease will be $3,600, w

Nonamiya [84]

Answer:

Present value of lease payments is $17720.57

Explanation:

The value of lease payments can be treated as an annuity due as the lease payments qualify the criteria of annuity- the payment amount is constant, is paid after a constant interval of time and the time is definite and known.

So, we will use the formula for the present value of annuity due as the payments are being made at the start of the period. The formula for the present value of an annuity due is attached.

PV of lease = 3600 + 3600 * [ {1 - (1 + 0.17)^-(8-1)} / 0.17 ]

PV of lease = $17720.56848 rounded off to $17720.57

3 0

3 years ago

Introduce national employment with its importance and examples

podryga [215]

Answer:

national employment. Employment created and provided by a national employer, business, company, enterprise, organization or national unity government in various areas of a country. National employment is a vital part of an economic system.

Explanation:

Types of employment

Full-time and part-time employees.

Casual employees.

Fixed term and contract.

Apprentices and trainees.

Commission and piece rate employees.

4 0

3 years ago

Ron is interested at working at Gas’N’Go, but whenever he looks on their company Web site he doesn’t see any openings listed. Wh

Brrunno [24]

Answer: c). Ron should send a prospecting letter to see if there are any unadvertised openings

Explanation: Since Ron is interested at working at Gas’N’Go, but is unable to find an opening on the company Web site he should try and send a prospecting letter to see if there are any unadvertised openings. It might happen at times that companies do not post online for certain positions. but when Ron send a letter he might have a chance to get a call from them.

4 0

3 years ago

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