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Helen [10]
2 years ago
5

What are your thoughts about starting out too large to maintain stability, as opposed to

Business
2 answers:
Scrat [10]2 years ago
7 0

I believe that the best method to maintain stability is to <u>start small </u><u>and then </u><u>grow</u><u>. </u>

<h3>Problems with starting out large</h3>
  • Lack of experience in managing problems that may arise.
  • Less loyalty due to upper management being far from lower employees.
  • Less chances of discovering competitive advantage.

When one starts small and grows however, they will be able to deal with problems as they come and gain the experience necessary to overcome such problems.

They will also discover their competitive advantage during growth which they can then leverage on as they grow to become even more competitive. Growth also allows management to be more in tune with lower employees as they would be hired gradually.

In conclusion, starting small and growing is key.

Find out more about competitive advantage at brainly.com/question/16101275.

Brums [2.3K]2 years ago
3 0

I don't understand

Brainliest

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High Flying takes tourists on helicopter tours of Hawaii. Each tourist buys a $190 ticket; the variable costs average $57 per pe
Dennis_Churaev [7]

Answer:

a.  450 tours per month

b.  $850 per month

c.  CM Ratio = 0.7

d.  

1.  Increase

2.  Decrease

3.  No Effect

Explanation:

<u>The questions are:</u>

<u>a. Compute the average number of tours the company must conduct per month to break even</u>

<u>b. Compute the average sales revenue needed per month to produce a target average profit of $53,200</u>

<u>c. Calculate the contribution margin ratio. (Round your answer to 2 decimal places.)</u>

<u>d. Determine whether the actions that follow will increase, decrease, or not affect the company's break-even point. </u>

<em>1. A decrease in tour prices.</em>

<em>2. The termination of a salaried clerk (no replacement is planned).</em>

<em>3. A decrease in the number of tours sold.</em>

<u />

<u />

<u>Solution:</u>

a.

Selling Price = 190

VC = 57

Unit Contribution Margin = $133

Fixed Cost = 718,200 yearly, so monthly is:

718,200/12 = 59,850

Break even occurs when by selling tours they will cover monthly fixed cost of 59,850 [each tour will get 133], thus:

59,850/133 =  <u>450 tours per month</u>

<u></u>

b.

718,200 FC yearly, means, monthly:

718,200/12 = $59,850

Profit needed 53,200, so we would need to cover:

53200+59850 = $113,050

Each tour gives Unit CM to be $133, so we would need revenue of:

Rev = 113,050/133 = <u>$850</u>

<u></u>

c.

Contribution margin ratio is the quotient of difference in sales and var expenses to sales.

So,

CM Ratio = (Sales - Var Exp) / Sales

CM Ratio = (190 - 57) / 190 = 0.7

d.

1.

If the tour prices, decrease, there will be less revenue coming in so the break even point would go higher.

So, break even point will increase

2.

If a salaried clerk is terminated, it will decrease the salary costs of the company. This is decrease the fixed costs of the company (annual wages and salaries), thus it will be easier to cover the new, lower, fixed costs. Thus, the break even point will decrease

3.

A decrease in number of tours sold would proportionally change the variables and other costs and revenues associated. If you look at the calculation above, you will see that "number of tours" won't affect the Break Even Point. Thus, this action will create "no effect".

7 0
3 years ago
Although you may not have received the e-mail we have been informed that the division head of the Finance Department is leaving
Orlov [11]

Answer:

B.

Explanation:

The sentence is too long and it is missing proper punctuations(like a comma). Reading it without punctuation does not provide room for breathing and therefore needs editing. It will be correct if framed like this; Although you may not have received the e-mail, we have been informed that the division head of the Finance Department is leaving at the end of the month. This sentence has a comma in the right place.

8 0
3 years ago
Home Value Inc., Max Cart Inc., and Nice Necessities Inc. are three consumer-product retailing companies. Their products consist
ruslelena [56]

Answer:

D. Any advantage that one firm has will be short-lived.

Explanation:

With the three firms all producing the same product with similar resources in their production and distribution of their products, any advantage that a firm has over the others if any would not last long at all. This is because each firm is using similar technique in the same location. Hence, there's nothing special about one of the firms over the others.

8 0
3 years ago
Congress passes a law that regulates the amount of lettuce that can be grown on a farm. Milton is a farmer who grows lettuce. He
Yuliya22 [10]

Answer:

The answer is: A) Declare the law constitutional because Milton's actions substantially affect interstate commerce.

Explanation:

The Commerce Clause, Article I, Section 8, Clause 3 of the Constitution of the United States:

[The Congress shall have Power] To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes.

Congress can enact laws that regulate interstate commerce, and this law is an example of one of them. It doesn't matter if Milton's action only affect commerce in a very small way, the law is still constitutional.

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3 years ago
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Luda [366]

Answer:

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Explanation:

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3 years ago
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