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Mkey [24]
2 years ago
7

A last-mile delivery service is looking into increasing capacity by purchasing new delivery vans. Two vans are being considered.

Van A costs $50,000 with a variable cost of $12.00 per average delivery, all inclusive of gasoline, insurance, etc. Van B costs $70,000 with a variable cost of $11.00 per average delivery. The company is also considering a courier service which requires a $60,000 non-refundable joiner fee and a variable cost of $13.00 per average delivery. Last but not least the company is also considering a new drone delivery option that requires an investment in infrastructure of $100,000 and a delivery cost of $15.00 per delivery, but costs are expected to drop sharply in the foreseeable future.
a. What of the following is NOT true?
A. In the long run, Option B with its $11.00 variable cost is the best option
B. The drone option should be chosen because it is the least expensive in terms of both fixed and variable cost.
C. Option A requires the smallest initial cash outlay, followed by using the courier service, followed by Option B.
D. There is no point of indifference/break even between Option A and using the courier service
b. ________ is preferred at volumes below_______ while_______ is preferred at volume above_______
A. B and 30,000, A and 20,000
B. B and 5,000, C and 5,000
C. C is always preferred to A at every volume
D. A and 20,000, B and 20,000
Business
1 answer:
Inessa05 [86]2 years ago
8 0

Answer: a. The drone option should be chosen because it is the least expensive in terms of both fixed cost and variable cost.

b. A and 20000, B and 20000

Explanation:

a. From the information provided, the correct option is option B "The drone option should be chosen because it is the least expensive in terms of both fixed cost and variable cost".

This statement is wrong has the drone has the largest fixed cost and variable cost. It's fixed cost of $100,000 is more than that of $70,000 and $60,000 for others.

b. A and 20000, B and 20000

A is preferred at volumes below 20000 while B is preferred at volume above 20000.

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If oligopoly firms decide to work together, either formally or informally, and honor the agreement then profits can be ________
Leno4ka [110]

Answer:

The correct answer is: maximized; reducing; increasing.

Explanation:

An oligopoly market is a market structure in which there is a small number of firms. The business decisions of each firm affect its competitors. There is no restriction on entry and exit of firms. There is a high degree of competition between firms.  

The firms can maximize their profits if they collude and act like a monopoly. They can earn monopoly profits by reducing the level of output and increasing the price of products.  

4 0
2 years ago
Maria spots a beautiful dress in the window of a boutique. Maria goes into
Yakvenalex [24]

Answer:

Asking Price

Explanation:

8 0
2 years ago
15. You have been working for five years after college and are ready to buy your first home. Homes in the area you want to live
PIT_PIT [208]

Answer:

$250,000

Explanation:

the down payment = cost of the house - mortgage  = $550,000 - $300,000 = $250,000

Something is not right with this question, because if you have been able to save $250,000 in 5 years, it means that you saved around $50,000 a year. If you were able to save that much money per year, then you should be able to pay a higher mortgage. The average 30 year mortgage has an APR of a little over 4% (national average between 4.04% - 4.16%). That would result in a monthly payment of around $1,151 including insurance.

So you should either go to another bank (if your salary is really that high) or search a cheaper house.

7 0
2 years ago
Anwer owns a rental home and is involved in maintaining it and approving renters. During the year he has a net loss of $8,000 fr
Evgesh-ka [11]

Solution:

(1) Maximum possible $25,000 deduction before phase-out

(2) Maximum deduction phase-out is $22,500

    [($145,000 AGI - 100,000) × 0.5]

(3) Current year overall loss $2,500 (1) - (2)

(4) Rental loss in current year $8,000

(5) Current year leasing deficit of 2,500 dollars, Lesser of (3) or (4)

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8 0
2 years ago
Davidson offers several solutions to the major issues, stating that fiscally we are actually not a nation that is divided on the
Mila [183]
QUESTION 1.
Some of the fiscal solutions that Davidson mentions tweaking in a bid to cut government spending multiple subtle ways <span>are as follows:
I. R</span>aise social security retirement age
II. Reduce medicare for wealthy seniors
III. Raise medical <span>healthcare contributions


</span>QUESTION 2.
According to Davidson, the republican and the democrat philosophies are two fundamentally different economic philosophies that impact the debt crisis faced by the United States. In his opinion, the republicans want a system in which the government’s only job should be to create an efficient society, whereas the Democrats aim at making sure that everyone lives in an “equitable, fair society”. I think I would agree more with the Democrat philosophy because equity and fairness to everyone is<span> a key public value outcome in every society.


</span>
QUESTION 3.
<span>The two fiscal issues that are hyper-partisan are as follows:
I. </span>Military defense spending.
II. I<span>ssues of taxes
</span>- The parties are so divided chiefly because they have extreme opposites points of view on several issues.
- On the issues, I lean towards the Democrat view. 


QUESTION 4.
Towards the end of his talk, Davidson says he fears that the longer we delay any solution, the more the world will look to the U.S. not as the bedrock of stability in the global economy, but as a place that can't resolve its own fights. He explains that the higher interest rates are going to be, the quicker we're going to have to face a day of horrible calamity.
4 0
2 years ago
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