Answer:
The answer is: Economies of scale
Explanation:
Economies of scale are the diminished cost by companies when production becomes efficient. Companies can achieve economies of scale by increasing production and lowering costs. This happens because fixed costs are spread over a larger number of goods. There are implications in variable costs as well (for example in obtaining discounts by large purchases from suppliers). In general, the larger the scale, the more cost savings.
The cost per unit depends on how much the company produces. Larger companies can produce more by spreading the cost of production over a larger amount of goods. Specialization of labor and more integrated technology boost production volumes. Lower per-unit costs can come from bulk orders from suppliers, larger advertising buys, or lower cost of capital. Spreading internal function (for ex: accounting, information technology, and marketing) costs across more units produced and sold helps to reduce costs.
<u>The sustained increase in demand impacts on producers. Now they produced more units, being able to achieve economies of scale and the benefits previously described. </u>
Answer:
We'll start by putting into consideration, the large sample variance at the numerator.
Barron's Variance will be represented using 1 as the subscript.
i.e.
1 = $583 million
2 = $489 million
So,
0: 1²= 2²
: 1² ≠ 2²
=1² / 2²=
= $583 million² / $489 million²
= 583²/489²
= 1.42
Degrees of freedom 15 and 9
Using F table, area in tail is greater than 0.10.
Two-tail p-value is greater than .20
Exact p-value corresponding to F= 1.42 is .5874 (See F table)
p-value > .10
So,we do not reject 0.
We cannot conclude there is a statistically significant difference between the variances for the two companies.
Answer:
Net income will decrease by $400,000
Explanation:
Currently this business unit is generating a net loss of $150,000:
total revenue - variable expenses - fixed costs = $700,000 - $300,000 - $550,000 = -$150,000
if the unit is eliminated, then the revenue and variable expenses will be gone, but the fixed costs will be allocated to other business units. So instead of losing $150,000, the company will lose $550,000. The company's net income will decrease by $550,000 - $150,000 = $400,000
They can simply ask their boss for a raise or just wait it out and soon enough you’ll get a raise.
