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vova2212 [387]
3 years ago
7

When a smaller country with fewer resources specializes its production and gains access to larger, international markets, this c

an create
Business
1 answer:
KATRIN_1 [288]3 years ago
6 0

Answer:

Economies of scale.

Explanation:

In Microeconomics, economies of scale can be defined as cost reductions or cost advantages that arises when a business entity is increases its production or are large in size.

This ultimately implies that, when an organization chooses a convenient scale of operation or reduce its scale of production, this would lead to a reduction in the cost of production and consequently, some benefits such as lower long-run average cost, increased sales, profits and lower cost price for the consumers of these finished products.

Generally, economies of scale arise when a smaller country with fewer resources specializes its production and gains access to larger, international markets. This is so because having a good number of professionals and experts would increase the level of production or output, as they are quite conversant with the best method of production, time management and efficiency.

Hence, when a smaller country with fewer resources specializes its production and gains access to larger, international markets, this can create economies of scale.

You might be interested in
In the AD partnership, Allen's capital is $140,000 and Daniel's is $40,000 and they share income in a 3:1 ratio, respectively. T
Mamont248 [21]

Answer:

D) 137000 39000

Explanation:

Allen  140,000

Daniel 40,000

Capital before admission 180,000

share ratio 3:1

Capital after admission:

180,000 + 40,000 = 220,000

David participation: 20%

220,000 x 20% = 44,000

David investment  40,000

goodwill: 4,000

There is a difference in goodwill which will be supported for the old partner as their current share ratio

Allen 4,000 x 3/4 = 3,000

Daniel 4,000 x 1/4 = 1,000

Capital after David admission:

140,000 - 3,000 = 137,000

40,000 - 1,000 = 39,000

6 0
3 years ago
Erin Shelton, Inc., wants to earn a target profit of $960,000 this year. The company’s fixed costs are expected to be $1,320,000
kipiarov [429]

Answer:

1. Break-even sales = $2,200,000

2. Net Income = $0

3. Sales = $3,800,000

4. See explanation section

5. Margin of safety = $1,600,000

Margin of safety (%) = 42.11%

Explanation:

Requirement 1.

We know,

Break-even sales = Fixed expense ÷ Contribution Margin Ratio

Given,

Expected Fixed expense = $1,320,000

Contribution Margin Ratio = Contribution Margin ÷ Sales Revenue

As we do not have contribution margin and Sales Revenue, we have to use variable costs that is expected to be 40% of sales. Therefore,

Contribution Margin Ratio = Sales (%) - variable costs (%) = 100% - 40% = 60%

Therefore, Break-even sales = $1,320,000 ÷ 60%

Break-even sales = $1,320,000 ÷ 60%

Therefore, Break-even sales = $2,200,000

Requirement 2.

                         Erin Shelton, Inc.

Contribution Margin Income Statement format

For the year ended, December 31, Current year

Sales Revenue                                          $2,200,000 (<em>Requirement 1</em>)

<u>Less: Variable expense (40% of sales)         880,000</u>

Contribution Margin                                  $1,320,000

<u>Less: Fixed Expense                                   1,320,000</u>

Net operating Income                                        0

In break-even sales, total fixed expense = total contribution margin, therefore, no income or loss.

Requirement 3.

We know,

This year, To attain profit, sales = (Fixed expense + Target Profit) ÷ Contribution Margin Ratio

Given,

Expected Fixed expense = $1,320,000

Target Profit = $960,000

Contribution Margin Ratio = Contribution Margin ÷ Sales Revenue

As we do not have contribution margin and Sales Revenue, we have to use variable costs that is expected to be 40% of sales. Therefore,

Contribution Margin Ratio = Sales (%) - variable costs (%) = 100% - 40% = 60%

Therefore, To attain profit, sales = ($1,320,000 + $960,000) ÷ 60%

To attain profit, sales = $2,280,000 ÷ 60%

Therefore, To attain profit, sales = $3,800,000

Requirement 4.

Using To attain profit, sales = $3,800,000 (From Requirement 3) to find the net operating income

                          Erin Shelton, Inc.

Contribution Margin Income Statement format

For the year ended, December 31, Current year

Sales Revenue                                          $3,800,000 (<em>Requirement 3</em>)

<u>Less: Variable expense (40% of sales)        1520,000</u>

Contribution Margin                                  $2,280,000

<u>Less: Fixed Expense                                   1,320,000</u>

Net operating Income                                $960,000

Requirement 5.

We know,

Margin of safety = (Current sales - Break-even sales)

<em>From Requirement 1, we get, Break-even sales = $2,200,000</em>

<em>From Requirement 3, we get, Current sales = $3,800,000</em>

Margin of safety = $3,800,000 - $2,200,000

Therefore, Margin of safety = $1,600,000

Margin of safety as percentage = [(Current sales - Break-even sales) ÷ Current sales] × 100

Margin of safety = ($1,600,000 ÷ $3,800,000) × 100

or, Margin of safety = 0.42105 × 100

Margin of safety = 42.11%

8 0
3 years ago
Strengths are typically based on the existence and nature of the __________ possessed by the firm. Weaknesses stem from a lack o
Nikolay [14]

Answer: a) resources and relationships

Explanation:

Strength for any firm according to analysis is considered as the resources existence that help in functioning of organizational process and organizational relationship for strong and reliable customer base.It helps in innovation, improvement and strengthening firm against competition companies.

Other options are incorrect because product, consumer,capital, partnership and patents are not the factors that majorly impact strength of the organization.Thus, the correct option is option(a).

4 0
3 years ago
5. The Federal Reserve's organizationThere are members of the Federal Reserve Board of Governors.The Federal Reserve's role as a
Lady bird [3.3K]

Answer:

U.S. banks that cannot borrow elsewhere.

Explanation:

  • In the United States, the Federal Reserve goes as a last resort lender to companies that do not have certain other acquisition practices, and the inability to obtain loans can significantly impact the economy.
  • so correct answer is U.S. banks that cannot borrow elsewhere.

3 0
3 years ago
Any materials published before the year usually are not subject to copyright.​
garik1379 [7]

Answer:

1923

Explanation:

5 0
3 years ago
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