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Ksivusya [100]
2 years ago
13

Fresh Breath Enterprises (FBE) is a well-known manufacturer of mouthwash. Its main facility is a mint-processing plant, which is

currently operating at only 60% capacity. FBE is considering the introduction of a line of mint chewing gum that would use the same mint-processing plant as part of its production process. This proposed production scenario is an example of:
Business
1 answer:
irinina [24]2 years ago
3 0

Answer:

Economies of scope

Explanation:

In the case of economies of scope, the efficiency should be attained via generating the variety of goods and services. In this the production cost is reduced at the time when different kinds of products are being produced

so as per the given situation, it is an example of the economies of scope

Therefore the same is to be considered and relevant

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We would expect the total utility of diamonds to be __________ than the total utility of water and the marginal utility of diamo
Gennadij [26K]

We would expect the total utility of diamonds to be <u>lower</u> than the total utility of water and the marginal utility of diamonds to be <u>higher</u> than the marginal utility of water.

<u>Explanation:</u>

The diamond-water paradox presents the puzzling predictions: while water is definitely essential to human existence because without water life can not function, the water price is relatively low. Alternatively, diamonds are actually far less essential to human life, but diamond prices are considerably higher. Thus the effectiveness obtained from water is evidently very high while the utility extracted from diamonds is considerably less.

Here total utility is the aggregate satisfaction of desires and needs gathered from the consumption of a good while marginal utility is the additional satisfaction of desires and needs received from the consumption of one additional unit of good.

7 0
2 years ago
Calculate the net income earned during the year. Assume that the change to stockholder's equity results only from net income ear
Nutka1998 [239]

Answer:

The net income earned during the year is $ 5,000

Explanation:

The first point to kn ow is the accounting equation is A=L+SE

So to calculate the opening stockholders equity we can rearrange the accounting equation to be:

A-L = SE

so opening SE is

Assets $ 50,000 - Liabilities $ 40,000 =  Stockholders Equity $ 10,000

Ending Stockholders equity is:

Assets $ 35,000 - Liabilities $ 20,000 = Stockholders Equity $ 15,000

Since the question mentions that the change in stockholders equity is only due to net income, the increase of $ 5,000 represents the net income for 2019.

7 0
2 years ago
On Kyle Thomason’s $400,000.00 loan, the lender charges a 2-point service charge. In this situation, how much will Kyle have to
bearhunter [10]

Answer:

The answer is C

Explanation:

This is an interest expense.

In accounting, the rule is as follows:

Debit side increases asset and expenses while credit side decreases liability, shareholders' equity and sales or revenue.

Credit side decreases asset and expenses while credit side increases liability, shareholders' equity and sales or revenue.

2 points on $400,000 means the interest charge is 2 percent on $400,000.

So we have 0.02 x $400,000

$8,000.

It will be a debit side because it is an increase in expense.

6 0
2 years ago
Read 2 more answers
CMN Inc. uses LIFO and has experienced increasing costs since its founding. CMN disclosed that the LIFO reserve (also known as t
Neporo4naja [7]

Answer:

$20 million

Explanation:

The computation of the ending inventory if FIFO is used

= LIFO reserve + Ending inventory based on LIFO inventory

= $3 million + $17 million

= $20 million

We simply added the LIFO reserve and LIFO ending inventory so that FIFO ending inventory can be computed. Hence, we take all the items for the computation part.

7 0
2 years ago
A monopolist sells 2,000 units for $20 each. The total cost of 2,000 units is $30,000. If the price falls to $19, the number of
leonid [27]

Answer:

Decrease by $1

Explanation:

Given:

Old data:

Q0 = 2,000 units

P0 = $20

Total revenue before change = 2,000 x $20 = $40,000

After change in Price.

Q1 = 2,100 units

P1 = $19

Total revenue After change = 2,100 x $19 = $39,900

Computation of Marginal Revenue:

Marginal Revenue = (P1 - P0) / (Q1 - Q0)

= ($39,900 - $40,000) / (2,100 - 2,000)

= -100 / 100

= $(-1)

Marginal revenue will decrease by $1

8 0
2 years ago
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