Answer:
Increase by $31,200
Explanation:
Retain Truck Replace Truck Net Increase
Sale price of old Truck $0 $32,200 $32,200
Cost of New Truck $0 -$132,000 -$132,000
Variable manuf. cost -$131,000 $0 $131,000
Net Income -$131,000 -$99,800 $31,200
The total increase in income by replacing the old Truck is $31,200.
Answer: The correct answer is "d. Power distance".
Explanation: In this case the power distance dimension is described as it deals with the social status relationships between superiors and subordinates.
power distance refers to the relationship between those in power and subordinates in a society where individuals of lower rank, depending on the culture of high or low power distance, react to that authority.
In this particular case, the relationship of power is of low distance since the participation of subordinates is tolerated and even encouraged.
Answer:
A particular product line is most likely to be dropped when:
- its total fixed costs are more than its contribution margin
- its variable costs are more than its fixed costs
- its unavoidable fixed costs are more than its contribution margin.
Explanation:
The aim of every producer is to maximize profit and to make this possible, the cost of producing a particular product should fall below the contribution margin.
In the case that the gross profit is always negative due to high cost of production, further production should be discouraged.
The decision to drop a particular product line is usually reached when:
- Its total fixed costs are more than its contribution margin: Here, the company will run at a loss. It is sustainable to continue production..
- Its variable costs are more than its fixed costs: This is also an unfavorable situation that does not sustain mass production. Therefore, further production should discontinue.
- its unavoidable fixed costs are more than its contribution margin: At this rate, profit cannot be maximized. It is a lose-lose situation for the company.
Answer:
Increase in GDP = $5
correct option is b. GDP increases by $5.00
Explanation:
given data
bake bread sold = $3.00
flour sold = $1
sells to consumer = $2.00
to find out
what is the effect on GDP
solution
we get GDP that is increase is express as
Increase in GDP = flour sold + ( bake bread sold - flour sold ) + sells to consumer ..................1
put here value we get by equation 1
Increase in GDP = $1 + ( $3 - $1 ) + $2
Increase in GDP = $5
correct option is b. GDP increases by $5.00
Answer:
Option "A" is the correct answer to the following statement.
Explanation:
Business Entity Assumption state that businessman and business are a different entity.
Under the Business Entity Assumption, Personal assets and Company assets are always different, Personal assets will never show in the Company's balance sheet.
In the case of Michel McNamee his bank account and personal home in not recorded in the company's book.
