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2 years ago

Which of the following is not a reason why firms experience economies of scale?

Business

1 answer:

kumpel [21]2 years ago

6 0

Answer:

The correct answer is letter "D": As output increases, the managers can begin to have difficulty coordinating the operations of their firms.

Explanation:

Economies of scale mean that production becomes more efficient as the number of goods being produced increases. In most cases, companies that achieve economies of scale lower the average cost of their products by increasing production. In economies of scale, the cost of each product can depend on the size of the industry or the size of an individual company. The larger the number of products being manufactured does not necessarily imply the most difficult the companies' operations become.

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Olden Company has provided the following information for this month: Sales Price $50 per unit Variable COGS $13 per unit Fixed C

Pie

Answer:

700 units

Explanation:

The breakeven point is also known as the BEP. The BEP is the number of units a company must sell for sales or revenue generated is equal to the cost incurred. As such, the BEP is the number of units that must be sold for the company to make neither a profit nor a loss.

Both sales and variable cost are dependent on the number of units sold.

The sales less the variable cost gives the contribution margin. The contribution margin less the fixed cost gives the net operating income.

Let the BEP units be T

35T = 11,000 + 3000 + T(13 + 2)

35T - 15T = 14,0000

20T = 14,000

T = 700

The company's new breakeven in units is 700 units

7 0

2 years ago

If an owner of a copy center is interested in knowing which of her employees can make the most copies in one hour, she wants to

Tema [17]

If an owner of a copy center is interested in knowing which of her employees can make the most copies in one hour, she wants to understand which of her employees has the ABSOLUTE ADVANTAGE in making the copies.
Absolute advantage is defined as the ability of an individual or group to carry out a particular economic activity more efficiently than another individual or group.

8 0

2 years ago

Read 2 more answers

Island Breeze Company designs and makes desk, window, and ceiling fans. In a product liability suit based on negligence, Island

patriot [66]

Answer:

Option D is correct

Explanation:

The company is liable for proper communication of cautions, defective designs and production processes that she uses to manufacture the product but it is not liable for the the consumer unforeseeable misuse of a fan. Because it is not associated with the duty of care. I also have a duty of care to myself like you have to yourself. If I have struck myself with a hammer then it unjustifiable to sue the company. I am misusing that hammer. I don't have the license but still I am driving car, it means I am misusing the asset. This means some operations are restricted by law and some are implicitly restricted.

5 0

2 years ago

The philosophy of producing a high-quality product or service and achieving quality in every aspect of the business and its rela

Vera_Pavlovna [14]

Answer:

Total Quality Management (TQM)

Explanation:

The philosophy of producing a high-quality product or service and achieving quality in every aspect of the business and its relationship with the customer, with a focus on continuous improvement in the quality delivered to customers is Total Quality Management (TQM)

Total Quality Management (TQM): It is a continous process of detecting and reducing error from the process of producing goods and services. This help in maintaining quality of the product by improving process and training worker for better performance. It also help in improving customer´s experience.

There are several tools used in total quality management (TQM):

Continuous improvement.
Six Sigma.
Employee empowerment.
Benchmarking.
Just-in-time.
Taguchi concept.
Knowledge of TQM tools.

8 0

2 years ago

Corporate owners earn a return ________. A. through interest earnings and earnings per share B. through capital appreciation an

TEA [102]

Answer:

C. By realizing gains through increase in share price and cash divideneds.

Explanation:

For most corporations, the management must strive to ensure the firm is doing well in the market space. Once a company is doing well, it will affect its share price positively on the stock exchange.

An increase in the share price of fim is a gain to the firm and its corporate owners. I.e sharedholders. This means that the value of their investment in the firm has appreciated.

Furthermore, the firm must try to make profit which is one of the reason of being in business. A firm that is making profit will be able to declare same at the end of the financial period, hence corporate holders(shareholders) would be have part in profit declaration through dividened.

7 0

2 years ago