Complete Question:
Read the news clip, then answer the following question A Bakery on the Rise Avalon's decision to -is a long-run decision. O A. move to a larger space Up to 500 customers a day line up to buy Avalon's breads, scones, muffins, and coffee. Staffing and management are worries. Avalon now employs 35 and plans to hire 15 more. Its payroll will climb by 30 percent to 40 percent. The new CEO has executed an ambitious agenda that includes the move to a larger space, which will increase the rent from $3,500 to $10,000 a month Source: CNN, March 24, 2008
Avalon's decision to __________ is a long run decision.
A. Move to Larger Space
B. Hire 15 more employees
Answer:
Option A. Move to Larger Space
Explanation:
The decision that alters only a single variable factor is considered as a short run decision. Labor, electricity usage, increased production are examples of variable factors. This means that increase in employees is a short run decision.
On the other hand, decision to increase or decrease the fixed factors are considered as long run decision because it is difficult to alter the decision and if we do so, then we will encounter heavy losses for a long period of time. Long run decision includes selling or purchasing or leasing of property, plant and equipment are considered as fixed factors.
In this case, Avalon is considering to move to a larger space which will result in significant increae in fixed cost. Hence it is fixed factor and is long run decision. Hence Option A is correct here.
Answer: $1,000
Explanation:
Given Data;
Total government demand is Q = 800 -10P
marginal cost (Mc) = $50
contracted price (cp) = $70 per unit
Therefore;
Marginal Revenue ( MR ) = Marginal Cost ( MC)
Q = 800 -10P
800 - Q = 10P
Divide through by 10, where Q = 1
800/10 - 1/10 = P
80 - 0.1Q = P
Total Revenue(TR) = PQ
TR = 80 - 0.1Q
MR = MC
where MC = $50
80 - 0.1Q = 50
Collecting like terms
80 - 50 = 0.1Q
30 = 0.1 Q
Divide both side by 0.1
Q = 300
Price would be
P = 80 - 0.1Q
P = 80 - 0.1(300)
P = $50
MC = 40
Producing Q units
Total Cost (TC ) = 40 * ( 300 )
= $12,000
Total profit
= TR - TC
= ( P * Q ) - $12,000
= ( $50 * 300 ) - $12,000
= $15,000 - $12,000
= $3,000
Changes caused by regulations
Contracted price = $70
Quantity = 100Units
TT’ = ( P * Q ) - TC
= ( 70 * 100 ) - ( 50 * 100 )
= $7,000 - $5,000
= $2,000
TT - TT’ = $ ( 3000 - 2000 )
= $1,000
If legislation is passed all profit would reduce by $1,000
Answer:
The correct option is A,$8.10
Explanation:
The post merger earnings per share of the combined business is the post merger earnings divided by the post merger weighted average number of shares .
Post merger earnings is $43,740,000
Post merger number of shares is combination of Essex shares before merger plus the equivalent shares given to Twinsburg shareholders in the new company.
Essex shares 5,000,000
Twinsburg(0.4/1*1,000,000) 400,000
Total post merger shares 5,400,000
Earnings per share post merger= $43,740,000/5,400,000=$8.10
The correct option is A.
Answer:
A. Where customers can see them.
Explanation:
Food Code is a rule that ensures public health safety and protection concerning food sold by retail outlets. The code gaurd against the adultration of food and shows the acceptable standard required from food retail outlets, so that patronisers health is secured.
The charts with the food code 3-401 should be placed where customers can see them to create awareness and make them to understand the level of what is expected from a food outlet. This would convince them that the food is prepared under healthy conditions.
Answer:
Option A.
Includes partnering rather than competing with existing distributors
Explanation:
Through internet retailing, a business can partner with other distributors and enlist the products of the distributors on their website along side their products.They can charge a fee for each product sold via their platform, which can serve as additional revenue to the business, without much extra costs. This is because the platform is already available.
This is the business model that companies such as Amazon apply. They enlist products of other businesses on their online platform, sell them and make some profit for themselves.
This is what gives internet retailing a strong appeal.
