Answer:
b. takes advantage of another company it does business with after the other company has made a substantial investment in assets to meet the needs of the company.
Explanation:
Vertical disintegration occurs when a company takes advantage of another company it does business with after the other company has made a substantial investment in assets to meet the needs of the company.
A common or popular example of vertical disintegration is Hollywood because it comprises of specialized business firms that are saddled with the responsibility of performing specific tasks or services such as creating movie trailers, posters, editing, sound effects, special effects, lighting, etc.
Generally, vertical disintegration help business firms or organizations to share risk associated with doing business among themselves.
The reason why PlastiPharm should care about excess inventory is:
- It can lead to the degradation of the raw materials
<h3>What is Excess Inventory?</h3>
This refers to the situation where there is a product that is yet to be sold due to the excess estimated demand for the product which leads to the overstock of the product.
With this in mind, we can see that PlastiPharm should be worried about the excess inventory because it can lead to the degradation of the raw materials as they are overstocked.
Read more about excess inventory here:
brainly.com/question/13829106
Answer:
The reasoning behind increasing tax revenues from decreasing tax rates is that people work harder and more effectively when they can keep more of their income.
Explanation:
A corporate tax cut gives businesses more money to hire workers, invest in capital equipment, and produce more goods and services.
An income tax cut increases the dollars per hour worked. It boosts workers' incentive to remain employed and creates more labor. That is one of the four factors of production that drive supply. Adding to supply will allow the economy to grow. The growth in economy results in more taxes to government in total.
Answer:
B. $53,600
Explanation:
beginning 0
completed 8,000
WIP 2,000 at 100% materials 50% conversion cost
<u>Materials </u>
Equivalent Units units complete + complete portion of ending WIP
8,000 + 2,000 x 100% = 10,000
Cost per unit 27,000/10,000 = 2.7
<u>Conversion cost</u>
Equivalent Units units complete + complete portion of ending WIP
8,000 + 2,000 x 50% = 9,000
Cost per unit 36,000/9,000 = 4
<u>Total cost per equivalent unit </u> Materials + CC
2.7 + 4 = 6.7
Transferred-out
8,000 x 6.7 = 53,600
Answer:
The correct answer is option A.
Explanation:
Income elasticity of demand can be defined as the measure of the responsiveness of demand to increase in the income of the consumer.
It is measured by the ratio of change in quantity demanded to change in income.
The income elasticity of demand of haircuts as 1.5 means that when income is doubled or increases by 100%, the demand for haircuts increase by 150%.
While, 0.14 income elasticity for food means that when income is increased by 100%, the demand for food increases by 14%.
So, the expenditure on haircuts increases more than double while that on food increases less than double.
