This is the full question
Choose one of the Web sites listed in the previous question and identify three ways the company has reduced its transaction costs by using a Web site to provide information. List these three transaction cost-reduction elements and write a paragraph in which you discuss one transaction cost-reduction opportunity that you believe that company has missed.
Answer:
I visited the Netflix website. I do not own a netflix account. Netflix has the following cost-reduction opporunities on its webpage:
- Clear information about the costs of the streaming service.
- Clear Frequently Asked Question section explaining about the nature of the service, and the terms of the contract in case you decide to purchase the service.
- Very nice visual interface without clutter.
One transaction cost-reduction opportunity that Netflix is missing though is:
- Lack of a preview to see what shows and films are available.
Assisant regional manager is like the next step down from regional manager,An assistant regional manager is what Dwight shrute wants to be.An assistant to the regional manger is what Dwight Shrute really is.Does that make sense?
Answer:
1,301 units.
Explanation:
With regards to the above, we know that break even level is
= ( FC + Depreciation ) / Contribution margin
FC = $4,200
Depreciation = $225
Contribution margin = P - V, where P = $4.60 , V = $1.20
Therefore,
Break even level = ($4,200 + $225) / $4.60 - $1.20
Break even level = $4,425 / $3.40
Break even level = 1,301 units
Hence, the amount of units N corp needs in order to break even is 1,301 units
