Which of the following is not a characteristic of an organizational objective?

For inventory systems with constant demand and a fixed lead time,

7nadin3 [17]

Answer:

a.the reorder point = lead-time demand

Explanation:

The reorder point is when there needs to be a replenishment of depleted stock of inventory.

Lead time is the time between when an order is placed and when delivery of goods and services is made.

So when there is constant demand and fixed lead time, there is no need to keep excess inventory as demand has been anticipated and inventory for the demand is available.

Also the lead time demand from order to delivery is also fixed because demand has been provided for already.

Thus reorder point= lead time demand

4 0

3 years ago

MC Qu. 131 At Midland Company's break-even point... At Midland Company's break-even point of 9,000 units, fixed costs are $180,0

kompoz [17]

Answer:

selling price per unit = $80

Explanation:

Giving the following information:

Company's break-even point of 9,000 units

Fixed costs are $180,000

Total variable costs= $540,000

First, we will calculate the unitary variable cost:

Unitary variable cost= 540,000 / 9,000

Unitary variable cost= $60

Now, the unitary selling price, using the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

9,000 = 180,000 / (selling price per unit - 60)

9,000selling price per unit - 540,000 = 180,000

9,000selling price per unit = 180,000 + 540,000

9,000selling price per unit = 720,000

selling price per unit = 720,000/9,000

selling price per unit = $80

8 0

2 years ago

Read 2 more answers

Hammer Time Company sells hammers that it purchases at a cost of $5. Hammer Time sells the hammers for $15. Last year, it sold 1

emmainna [20.7K]

Answer:

The sales revenue would be 170,000 if Hammer Time implements the decrease in selling price.

This would generate a decrease of $10,000 in the sales revenue

Explanation:

Understanding the way sales revenue is generated:

$Units Sold * Unit Price = $Sales Revenue$

If the selling price drops to $10

and units sold increase by 5,000

$(12,000 + 5,000) * ( 15 - 5 ) = 17,000 * 10 = 170,000$

Comparing with the previous year:

$12,000 * 15 = 180,000$

This policy decrease the sales revenue which makes the business less profitable.

8 0

3 years ago

1. Of the 4 strategic approaches to international markets, which one(s) might be the best for a manufacturing company? a financi

viktelen [127]

Answer:

1a. For manufacturing company– Buying a local manufacturing company

b. For a financial services company– Partnership

c. A company like Coke or Pepsi– Greenfield Investments

Explanation:

1a. Buying a local company saves valuable resources for the foreign manufacturing, and it allows for quick market knowledge since this company has already been in operations for a long time.

b. A partnership would be best for a financial services company, this would involve a smooth transition into new markets without having to spend much on physical structures as the domestic company is already having necessary infrastructures in place.

c. Coke and Pepsi would preferably choose to use the Greenfield investment strategy by building a new plant from the ground up because of its established quality standards as well as trade mark and intellectual property protection.

2. A technology-centric firm would benefit most by buying a Company because of the already available market share as well as benefiting from reduced government regulations.

3. If one is operating a start-up or smaller firm of course cost would be a major consideration, therefore selling out License to foreign companies may be effective. This would transfer the rights to use a product or service in a different market geography.

4. It provides a good foresight into the requirements needed to enter foreign markets.

6 0

3 years ago

Hiro owns and operates a small business that provides economic consulting services. During the year he spends $57,000 on travel

tino4ka555 [31]

Answer: D. Since Hiro’s economic profit is negative, he would be better off if he didn’t operate the consulting business and taught economics instead.

Explanation:

Economic Cost is calculated by taking into account all costs, both Implicit and Explicit. Implicit Costs are also known as Opportunity costs and are referred to as the income you could be earning if you were doing the alternative.

Hiro's Economic Cost can hence be calculated by,

Economic Cost = Implicit costs + Explicit Costs

= (50,000 + 100) + 57,000

= $107,000

Subtracting that from his Revenue per year gives,

= 100,000 - 107,000

= -$7,000

Hiro is experiencing an Economic Loss by operating his business and would be better off Teaching Economics at the small local college.

8 0

3 years ago