Answer:
The answer is: A) Forward vertical integration (FVI)
Explanation:
FVI takes place when a company expands its business activities to take direct control of the distribution of their products.
The question is a textbook example of FVI. A company decides to sell their products directly to their customers bypassing the middlemen.
Internet sales are giving several companies this opportunity. For instance, every once in a while I get promotions directly from the Coca Cola Company offering me direct discounts on their products. Of course some type of courier or logistics company is needed, but the sale is made directly from the distributor bypassing the grocery store. A more common example is people buying their cars directly in the manufacturers website. In Germany, car vending machines are located right next to the factories. You buy online and you pick your car like a soda can, only on a huge scale.
Answer:
Net income after operating loss for 2019 is equal to $0 dollars and amount of net operating loss carried forward available in 2020 is equal to $5000.
Explanation:
Net loss is not deductible in the current year but can however be carried forward to the subsequent year and deducted against income in that year. Therefore the loss can only be deducted from 2019 on wards. The remainder of the net loss after deducting against 2019 income will be carried over into the subsequent year and therefore $5000 is carried forward to the year 2020.
Answer:
24.3 days
Explanation:
Calculation for How long, on average, does it take the firm to collect on its sales
Using this formula
Average collection period = (Accounts receivable / Credit sales) * 365 days
Let plug in the formula
Average collection period =$30 million/$450 million *365 days
Average collection period =24.3 days
Therefore How long, on average, does it take the firm to collect on its sales is 24.3 days
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.
