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2 years ago

If United Airlines acted as a "price leader" and all other airlines simply charged the same prices

Business

1 answer:

Hatshy [7]2 years ago

8 0

Answer:

Explanation:

The airline industry is an example of an oligopoly

An Oligopoly is when there are few large firms operating in an industry. While, a monopoly is when there is only one firm operating in an industry.

Oligopolies are characterised by :

price setting firms

product differentiation

profit maximisation

high barriers to entry or exit of firms

downward sloping demand curve

the action taken by the other airlines is known as tacit collusion.

Tacit collusion is when other companies adopt the price of the price leader

Tacit collusion is not illegal while the explicit collision is illegal.

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Highfill Corporation's variable overhead is applied on the basis of direct labor-hours. The standard cost card for product D80D

Vesnalui [34]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Standard direct labor hour per unit= 6.5 hours

Standard variable overhead= $6.8 per direct labor hour.

Actual production= 1,300 units

Actual direct labor hours= 8,500 hours

Actual variable overhead= $60,290

A) To calculate the variable overhead rate variance, we need to use the following formula:

Manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity

Actual rate= 60,290/8,500 hours= $7.093

Manufacturing overhead rate variance= (6.8 - 7.093)*8,500= $2,490.5 unfavorable

B) To calculate the variable overhead efficiency variance, we need to use the following formula:

variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate

Standard quantity= 1,300*6.5= 8,450 hours

variable overhead efficiency variance= (8,450 - 8,500)*6.8= $340 unfavorable

3 0

2 years ago

United Machining's margin was 2% and turnover was 3.0 on sales of $60 million for the year. On the basis on this information____

Hunter-Best [27]

Answer:

B, net income for the year was $1,200,000, average assets were $20 million, ROI was 6%

Explanation:

net income is calculated by multiplying the percentage margin by the sales. We have,

(2 ÷ 100) × $60,000,000

= 0.02 × $60,000,000

= $1,200,000

To calculate the average assets, sales is divided by the turnover.

we have, ($60,000,000 ÷ 3.0)

= $20,000,000.

To calculate the ROI, margin and turnover are multiplied.

we have,

(2% × 3.0) = 6%

Cheers.

3 0

2 years ago

A private pilot wishes to insure his airplane for$200,000. The insurance company estimates that a total loss will occur with pro

Finger [1]

Answer:

The answer is: $6,900

Explanation:

To determine how much the insurance company should charge, we must first calculate the amount of money they expect to pay:

total loss $200,000 x 0.002 = $400
50% loss $100,000 x 0.01 = $1,000
25% loss $50,000 x 0.1 = $5,000

Total $6,400

If the insurance company expects to pay $6,400 per year, they will have to charge $6,900 ($6,400 + $500) to cover their expenses and earn a $500 profit.

4 0

2 years ago

He fourth stage in the marketing process is to build and sustain enduring customer relationships. the key elements of this proce

alexira [117]

~Hello There!~

The key elements of this process involve customer value and customer satisfaction.

Hope This Helps You!
Good Luck :)
Have A Great Day ^_^

- Hannah ❤

3 0

2 years ago

Turnbull Co. has a target capital structure of 45% debt, 4% preferred stock, and 51% common equity. It has a before-tax cost of

3241004551 [841]

Answer:

TurnBull's Weighted Average cost of capital is higher by 1.07% if the used common Equity to raised the capital.

Explanation:

First, using the WACC formula and using Retained earnings cost of Capital. we get the following outcome.

WACC = Debt W x after tax cost of Debt + Preferred Stock weight x Cost of capital + Equity W x Cost of Capital

WACC = 45% x 8.33% + 4% x 12.20% + 51% x 14.70% =

WACC = 3.75% + 0.49% + 7.50% = 11.73%

Second, using the WACC formula and using common equity cost of Capital. we get the following outcome.

WACC = Debt W x after tax cost of Debt + Preferred Stock weight x Cost of capital + Equity W x Cost of Capital

WACC = 45% x 8.33% + 4% x 12.20% + 51% x 16.80% =

WACC = 3.75% + 0.49% + 8.57% = 12.80%

Increase Cost using common equity over Retained earnings is (12.80% - 11.73% ) = 1.07%

4 0

2 years ago

Read 2 more answers