Answer:
12,000 units
Explanation:
The computation of the level of production is shown below:
Since the variable cost is reduced by $5 so new variable cost is $70 so there is an margin of $5
And, there is an increase in fixed cost i.e $60,000
So, the level of production is
= An increase in fixed cost ÷ Margin per unit
= $60,000 ÷ $5
= 12,000 units
Answer:
Explanation:
The journal entries are shown below:
1. Leasehold expense A/c Dr $105,000
To Cash A/c $105,000
(Being the cost of modernization is recorded)
2. Amortization expense - Leasehold A/c Dr $10,500
To Leasehold A/c $10,500
(Being amortization expense is recorded)
The computation is shown below:
= Purchase cost ÷ estimated yield benefits
= $105,000 ÷ 10 years
= $10,500
Answer: Option C
Explanation: In simple words, product focused process refers to the processes that focuses on producing the batch of similar products. These processes are usually used to manufacture products like paper rolls and light bulbs.
Under this process large units are produced of a similar product. Such processes require high fixed cost and low variable cost.
From the above we can conclude that the correct option is C.
Answer:
A) ability of Big Lots to imitate Wal-Mart's tightly integrated activity map.
Explanation:
Competitive advantage of a company is it's ability to leverage on unique capabilities and resources to gain more market share than others.
In this instance Big Lots is competing favourably by imitating unique capability of Walmart which is highly disciplined merchandise cost and inventory management system.
A business can imitate another's strategy in order to better compete with them.
For example acquiring a company to increase scale of operations to match a competitor.
