What is the failure rate for a franchise?

Big John’s manufacturing currently produces its lead product on a machine that has a variable cost of 0.32 per unit and a fixed

Greeley [361]

Answer:

The indifference point is 1,875,000 units.

Because the current machine has lower fixed costs, it has a lower cost from 0 units to 1,874,999. From 1,875,001 the new machine is more convenient,

Explanation:

Giving the following information:

Current machine:

Total cost= 75,000 + 0.32x

New machine:

Total cost= 150,000 + 0.28x

To find the indifference point, we need to equal the cost functions and isolate x (number of units)

75,000 + 0.32x = 150,000 + 0.28x

0.04x= 75,000

x= 1,875,000

The indifference point is 1,875,000 units.

Because the current machine has lower fixed costs, it has a lower cost from 0 units to 1,874,999. From 1,875,001 the new machine is more convenient.

6 0

3 years ago

In response to dwindling sales of organic meats, Hain Celestial executives decided to promote the sale of organically grown nuts

3241004551 [841]

Answer:

Product substitute

Explanation:

Product substitute is defined as one that meets similar needs of the consumer. As demand for one of such goods rises the demand of the other tends to fall as the meet similar needs.

In the given scenario organic meats are seen as being substituted by organically grown nuts as a source of protein.

So when Hain Celestial has dwindling sales of organic meats they were considering organically grown nuts as a different product to give to customers

3 0

3 years ago

In January 2016, currency held by individuals and businesses and traveler's checks was $1,347 billion; checkable deposits ow

Zielflug [23.3K]

Answer:

$M_1 = $3111$

$M_2 = $12409$

Explanation:

Given data:

Amount of currency held = $1347 billion

checkable deposit $1347 billion

saving deposit $8189 billion

small time deposit $400 billion

market fund $709 billion

Saving deposit in the form M2 and M1

M_1 = currency held as individual and traveller check + checkable deposit

= $1347 + $1764

$M_1 = $3111$

M_2 = M_1 + saving deposit _ time deposit + maket funds

= $3111 + $8189 + $400 + $709

$M_2 = $12409$

3 0

2 years ago

A direct cost is a cost that is____________.

Nookie1986 [14]

Answer:

The correct answer is letter "D": Traceable to a single cost object.

Explanation:

Direct Cost for finished goods is referred to the costs of the items and services directly used in production that can be allocated to a single cost object. Other costs including rent and production site insurance are indirect costs. The cost of the finished goods may be assigned to indirect costs, but they are not direct costs because they do not change with production levels.

5 0

3 years ago

In 20X5, Elm Corp. bought 10,000 shares of Oil Corp. at a cost of $20,000. On January 15, 20X6, Elm declared a property dividend

xxMikexx [17]

Answer:

c) $25,000

Explanation:

A property dividend should be recorded in retained earnings at the property's market value at date of declaration.

The date of declaration is the date on which the firm has made the commitment to pay the dividend. The market value on this date is the value that was considered when the board made the decision to distribute a property dividend and thus is the appropriate measure of the sacrifice to the firm.

In application to the scenario, the property dividend will be recorded in retained earnings at the market value at the date of declaration which is Jan 15 NOT on the day it is payable.

Hence, retained earnings will reduce by $25,000

In 20X5, Elm Corp. bought 10,000 shares of Oil Corp. at a cost of $20,000. On January 15, 20X6, Elm declared a property dividend of the Oil stock to shareholders of record on February 1, 20X6, payable on February 15, 20X6. During 20X6, the Oil stock had the following market values:

January 15

$25,000

February 1

26,000

February 15

24,000

6 0

3 years ago