Answer:
C. control of resources
Answer:
True
Explanation:
As long as the statement holds that ''each company's profit depends on whether Little Kona enters...'' and the response of the existing monopoly to charge a low price to keep its market share; then both little Kona and Big Brew have a dominant strategy in this game.
They both will become a duopoly which implies that there will be two players in the industry and the price of Big Brow will be greatly influenced by the presence of Little Kona. Big Brow could charge as high as $8 if Little Kona is absent but as low as $2 if Little Kona is enters the industry.
Obviously they both have a dominant strategy, considering further that the entrance of Little Kona changes the industry structure from monopoly to duopoly
Answer:
The cost of goods manufactured is $ 76,800
Explanation:
Computation of cost of goods manufactured
Raw Materials consumed
Opening raw materials inventory $ 1,200
Add: Raw materials purchased $ 27,800
Less: Closing raw materials inventory $ ( 1,400)
Raw materials consumed $ 27,600
Direct labor Cost $ 20,000
Manufacturing Overhead $ 28,900
Total manufacturing input $ 76,500
Add: Opening work in process $ 7,100
Less: Ending work in process $( 6,800)
Cost of goods manufactured $ 76,800
Answer:
The service sector grows because of the same reason that any other economy sector grows: the demand for it increases.
Explanation:
Demand increases because new services are created, or existing ones obtain more customers: a larger market share.
In the case of Amazon, the service it offers is deliveries, but Amazon took deliveries to its logical conclusion, becoming an online store that essentially sells everything, from books to car accessories, to fruits and vegetables.
Amazon has become a giant company because it exploited a existing market that had a lot of untapped potential, and customers at the same time responded by demanding even more of these services. In other words, Amazon and the customers formed a virtous cycle that feeds economic growth.
Answer: A batch size of 30units
Explanation:
The set up time is given as 20 Minutes per production cycle, Production cycle for the machine has 3 cycles
Therefore the set uo time for the cycles = 20 mins x 3= 60 minutes
Processing time = 0.5 minutes
Capacity = 24units per hour , changing to minutes we have
24 units / 60 minutes = 6/ 15 = 2/5 = 0.4 minutes
Capacity = Batch size / Set up time + batch size x processing time per unit
0.4 = B/ 60 + B X 0.5
0.4 = B/60 + 0.5B
0.4( 60 + 0.5B) = B
24 + 0.2B=B
24=B-0.2B
0.8B=24
B =24/0.8
Batch size = 30 can be achieve at a capacity of 24 units per hour.
Answer:
186.10 days
Explanation:
The operating cycle = Days inventory outstanding + days sale outstanding
where,
Day inventory outstanding = (Beginning inventory + ending inventory) ÷ cost of goods sold × number of days in a year
= ($1,205,000) ÷ $(2,940,000) × 365 days
= 149.60 days
Day sale outstanding = (Beginning Accounts receivable + ending Accounts receivable) ÷ Net sales × number of days in a year
= ($660,000) ÷ ($6,600,000) × 365 days
= 36.5 days
Now put these days to the above formula
So, the days would equal to
= 149,60 days + 36.5 days
= 186.10 days
Answer:
Margin of safety in units = 590.9 units (approx. 591 units)
Explanation:
To calculate this, we have to determine the margin of safety in terms of cash/amount, then convert it to units.
The margin of safety in this case is defined as the difference between the selling price and the break even point. It can simply be explained as the profit made on selling a product, gotten after deduction cost of production.
First of all, let us calculate the total cost of production for 1,500 units;
variable cost;
1 unit = $8
∴ 1,500 units = 1500 × 8 = $12,000
Fixed cost = $8,000
Therefore total cost of production = variable cost + fixed cost
= 12,000 + 8,000 = $20,000
Next, let us calculate the selling price;
1 unit = $22
∴1,500 units = 1,500 × 22 = 33,000
safety margin in cash = Selling price - cost price = 33,000 - 20,000
= $13,000
To convert this amount to units, let us find out how many units are sold for $13,000 as follows;
$22 = 1 units
∴ $13,000 units = (1/22) × 13,000 = 590.9 units