In the long run, if inputs are increased by 10 percent and output increases by 20 percent, then diseconomies of scale are said to exist. It is because diseconomies of scale is likely to happen in the long run for a business with increasing inputs without decreasing the cost of production. It can happen when the increase in production is dependent on one part that needs to be completed but there is a delay on producing the parts. Another reason is that the cost of shipping may increase base on how far will be the distance and the weight of the product.
Answer:
The obvious negative consequence of the two examples is that the customer will not be satisfied, while the consequence of the third is the unethical damage done to the employees. In the first example, customer care agents are not focusing on the actual problem, but rather the time invested in handling a call, which is not the crucial KPI.
a. This example could be modified by creating a new KPI, which is not time related. A better KPI would be the <u>number of satisfied customers</u> after reporting a problem. Time should be taken into consideration as a limit when certain complaints take too much time.
b. In this example, the KPI should be sales revenue, not volume. They should focus on enhancing the benefits of products rather than giving large discounts straight ahead. Also, trying to cross-sell to customers even when it is irrelevant (and bothersome) can negatively influence the long-term customer relationship.
c. This is vastly unethical practice to use the low number of injuries as a means of productivity. There are plenty of other more relevant KPIs for bonus eligibility such as the number of produced items in a day, punctuality, manager reference etc. It is understandable that a company wishes to minimize the injuries (as it is a downtime for a worker and reduces overall productivity), but it is not the best way.
Answer:
The equal monthly payment is $3,068.20
Explanation:
The equally monthly payments can be computed using the pmt formula in excel.
=pmt(rate,nper,pv,fv)
rate is the monthly nominal rate of 6%/12=0.5%
nper is the number of monthly payments required which is 4*12=48
pv is the current value of the bicycle of $170,000
fv is the worth balance of the financing arrangement at the end of fourth year that should be paid once ,$50,000 balloon payment
=pmt(0.5%,48,-170000,50000)
=$3,068.20
Note that the interest is one month interest rate as the payment is expected monthly.
Answer:
B. $1.12
Explanation:
The computation of arbitrage trading profit is shown below:-
Euro Share price = £0.875
Spot rate R = £0.6366/$1.00
1 ADR Share price in US = $5.75
1 ADR = 5 share of shares
Now, The actual price of 1 ADR P1 = 5 × Euro Share price ÷ Share price in US
= 5 × £0.875 ÷ £0.6366
= $6.87
Therefore, The Arbitrage profit = Actual price - trading price
= Actual price - Price in US
= $6.87 - $5.75
= $1.12
Therefore for computing the arbitrage trading profit we simply applied the above formula.
Answer:
Check the explanation
Explanation:
a) Dan is a "Supplier" of funds.
b) Jon is a demanded of funds.
c) Savers save more when the real interest rate is "increase" and the supply of the loanable fund slopes "upward".
d) Borrowers like JOn are likely to borrow more when the interest rate is "decreasing " adn therefore, the demand for loanable funds slope "Downward".
