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Alex17521 [72]
4 years ago
13

Which of the following correctly explains why cheating is a common problem for cartels?

Business
1 answer:
bulgar [2K]4 years ago
4 0

Answer: An individual cartel member has an economic incentive to sell more than its quota, thus cheating on the cartel agreement. However, if all cartel members sell more than their quotas, the cartel price will fall, and profits will vanish

Explanation: A cartel is defined as group of businesses or nations that collude to limit competition within an industry or market. Thus, a major purpose of a cartel is to drive up price and profits thus restricting market output. This restriction however, requires cartel members to sell no more than their given quotas which provides individual cartel member with economic incentives to sell more than its quota resulting in cheating and a breach of cartel agreement. This leads to a fall in cartel price and vanishing profits should all members sell above their quotas which is a direct contradiction to the purpose of cartels.

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A company has a unit contribution margin of $80 and a contribution margin ratio of 50%. what is the unit selling price?
lora16 [44]

If a company has a unit contribution margin of $80 and a contribution margin ratio of 50%. Then its unit selling price is $160 therefore option (d) is the correct answer.

Contribution margin, or dollar contribution in keeping with the unit, is the selling fee in step with the unit minus the variable price in line with the unit. "Contribution" represents the portion of sales that isn't eaten up by variable prices and so contributes to the coverage of fixed fees. The contribution margin is computed because of the promoting charge per unit, minus the variable value according to the unit. Additionally known as greenback contribution per unit, the measure indicates how a specific product contributes to the general income of the business enterprise.

To calculate the unit selling price use the formula

Unit selling price = contribution margin / contribution margin ratio

Unit selling price = $80 / 50%

Unit selling price = $160

Therefore option d) $160 is the correct answer

The contribution margin ratio of a business is the same as its revenue much less all variable fees, divided by means of its sales. It represents the marginal gain of producing one more unit.

Learn more about the Contribution margin here brainly.com/question/24881206

#SPJ4

3 0
2 years ago
On January 1, 2020, Wells Tech signed a $950,000 two-year construction contract. Wells secured $950,000 financing at 7%. In 2020
boyakko [2]

Answer:

$26250

Explanation:

The capitalized interest wil be =  Average Accumulated Expenditures * Rate of Interest.

= 375000 * 7% = $26250

3 0
3 years ago
Based on Trompenaars's value dimensions, in which of the following cultures do managers separate their work and private lives, a
Oduvanchick [21]

Based on the Trompenaar's value dimensions the culture that separate the work and the private lives of the manager is the specific oriented value

Explanation:

There are seven basic values based on which each of them are defined and the dimension that allow the people to keep their private lives and their work life different is called as specific oriented culture

The other dimensions also includes the difference between the national cultures and they developed the model in each cultures and they can help the people to understand the basic differences

3 0
4 years ago
Del Gato Clinic deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the clo
Dvinal [7]

Answer:

cash account $15,239

bank statement $14,651

reconciliation per bank statement:

bank statement $14,651

+ deposits in transit $2,247

<u>- outstanding checks ($1,745)         </u>

reconciled bank statement $15,153

reconciliation per cash account:

cash account $15,239

+ error on check No. 919, $9

<u>- bank service fees ($95)             </u>

reconciled cash account $15,153

reconciled bank statement $15,153 = reconciled cash account $15,153

7 0
3 years ago
A diesel-powered tractor with a cost of $186,240 and estimated residual value of $5,700 is expected to have a useful operating l
scoundrel [369]

Answer:

$612

Explanation:

To compute the depreciation, first we have to compute the depreciation per hour which is given below:

= (Cost of diesel-powered tractor  - estimated residual value) ÷ (useful operating life)

= ($186,240 - $5,700) ÷ (59,000 hours)

= ($180,540) ÷ (59,000 hours)

= $3.06 per hour

Now the depreciation would be

= Operated hours  × depreciation per hour

= 200 units × $3.06

= $612

7 0
4 years ago
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