A. How does capacity utilization affect the intensity of internal rivalry in the commercial airline industry?b. How does capacity utilization affect the extent of entry barriers in this industry?

Answers

Answer 1

Answer:

Answer:

Barriers to entry, Internal industry rivalry, Supplier power, buyer power,etc.

Explanation:

Firms that are capable of excessive productions could boost sales volume by increasing the productions at cost advantage of reducing price. But firms that are incapable of increasing the productions capacity will be unable to produce extra quantity to gain any market share.

Barrier to entry : A established large MES of the industry prevents small entrants from entering into the industry.

Related Questions

The following information pertains to Lightning Inc., at the end of the year:Credit Sales $75,000 Accounts Payable 13,900 Accounts Receivable 8,200 Allowance for Uncollectible Accounts $900 creditCash Sales 24,000 Lightning uses the percentage-of-credit-sales method and estimates 4% of sales are uncollectible. What is the ending balance of the allowance account after the year-end adjustment?$3,900$4,860$3,000$2,100
Yummy Jams Company produces a line of jams. Yummy's estimated production of jars of jam for the fourth quarter of the year is as follows: October 75,000 November 98,000 December 63,000 Each jar requires half a pound of berries. Yummy prefers to buy the freshest berries, so its policy is to have just 3% of the following month's production needs in ending inventory. On October 1, the company had 1,125 pounds of berries in inventory. Yummy's pays $0.60 per pound of berries. It buys all berries on account and typically pays 40% of a month's purchases in that month, and the remaining 60% the following month. How much cash is paid in November for berry purchases (rounded to the nearest dollar)? a.$32,212 b.$19,963 c.$21,088 d.$28,900 e.$25,258
Garfield Industries is expanding its operations throughout the Southeast United States. Garfield anticipates that the expansion will increase sales by $1,000,000, and increase the costs of goods sold by $700,000. Depreciation expenses will rise by $50,000 and interest expense will increase by $150,000. The company’s tax rate will remain at 40 percent. If the company’s forecast is correct, how much will net income increase or decrease, as a result of the expansion?
SCENARIO:Marcus, feeling stressed out from work, decided to search for a meditation app for his phone that would help him relax during the day. One app, CalmDown, appeared to be promising. It didn't have any reviews yet and looked to be a brand-new app, so he decided to try it out. He downloaded the app to his phone and opened it up. The first screen required he enter in his name and email address. At the very bottom of the screen it had some small writing, but Marcus didn't notice it and hit the continue button.Had Marcus clicked on the link at the bottom of the screen, he would have seen the following:The second screen stated "Three-day trial version- Free! $59.99 annual fee thereafter." Marcus was annoyed that the app would cost him almost $60 but figured he would set a reminder on his phone to cancel the app before the trial period expired so he wouldn't get charged. Plus, he wanted to see the app in action. If it was actually worth the price, he wouldn't mind paying the annual fee. He clicked "Continue" and put in his bank card information on the next screen. The following screen asked Marcus a series of questions about his stress level and what he felt caused stress in his life. He clicked "high" and "work" as the level and cause. He then completed the first CalmDown meditation in the app, but was not impressed with its functionality. Deciding he would cancel his subscription immediately, he went into the profile settings to try to find the cancel option but couldn't. He searched every possible place on the app but didn't see a way to cancel the subscription. Marcus decided to try to find the app's developer through their website, but a quick search didn't turn up anything. Already stressed and becoming more frustrated, Marcus decided to contact the app store. They informed him that he should be able to go into his app store account and cancel the subscription there. However, when Marcus went there, he didn't see the app as an option or as a subscription. Thinking that maybe his subscription didn't process, he just deleted the app from his phone.Marcus didn't give the app or the subscription any more thought, becoming increasingly more distracted by the amount of stress at work. Four months later, Marcus was looking at his bank account online and noticed it was lower than it should have been. He began reviewing the charges and noticed multiple charges for $59.99 to a merchant named "CDgotU." He immediately remembered the app and contacted his bank to dispute the charges. His bank replied that due to the charges being debit withdraws he needed to dispute them within 2 days of being made. Moreover, if he had been diligent about watching his account, they could have put a block on the account and the remaining fraudulent charges would have been prevented. The bank representative also told him that he should try to get a refund from the company that charged him. After making his case with the bank representative for several hours about how he tried to cancel his subscription, he was unsuccessful. The bank's representative was able to provide Marcus a phone number attached to the Merchant account, but when Marcus called the number it was disconnected. The bank could not provide him with any additional information such as a company address or website.After more internet searching, Marcus saw a number of other complaints online about the app, and noticed it had been removed from the app store and was no longer available for download. Marcus decided to bring an action against the company for fraud, breach of contract, conversion, and several other claims in his home state of Vermont.Can Marcus compel the bank or the app store to provide additional information about the creator of CalmDown in order to determine the creator's location and potential assets?a. No, these records are not subject to being subpoenaed due to their confidential nature. b. Yes, he can subpoena records during the discovery process from both, but the bank and the app store may ask the judge to deny the request or limit the request due to privacy concerns. c. Yes, but he must subpoena these records prior to the filing of the complaint. d. Yes, he can file interrogatories during the discovery process to both the bank and the app store.
Suppose there is a policy debate regarding the United States’ imposing trade restrictions on imported steel rods. Read the following scenario and answer the question that follows. The president of the United States argues that the United States should threaten to impose a tariff on Chinese steel rods in order to induce the Chinese to remove its tariff on American cars. Which of the following justifications is the pundit using to argue for the trade restriction on steel rods? a. National-security argument b. Infant-industry argument c. Jobs argument d. Using-protection-as-a-bargaining-chip argument e. Unfair-competition argument

The members of a wedding party have approached Imperial Jewelers about buying 26 of these gold bracelets for the discounted price of $367.00 each. The members of the wedding party would like special filigree applied to the bracelets that would require Imperial Jewelers to buy a special tool for $457 and that would increase the direct materials cost per bracelet by $7. The special tool would have no other use once the special order is completed. To analyze this special order opportunity, Imperial Jewelers has determined that most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $8.00 of the overhead is variable with respect to the number of bracelets produced. The company also believes that accepting this order would have no effect on its ability to produce and sell jewelry to other customers. Furthermore, the company could fulfill the wedding party’s order using its existing manufacturing capacity.

Answers

Answer:

this special order will result in a $2,637 profit, so the company should accept it

Explanation:

special order for 26 gold bracelets

discounted price of $367 per unit

normal production costs:

direct materials $143
direct labor $90
manufacturing overhead $31
total $264

costs related to the special order

increase in direct materials = $7 per unit, total of $150 per unit

direct labor $90 per unit

variable overhead = $8 per unit

machine used for this project only $457

revenue generated by special order:

total revenue $9,542

- variable costs ($6,448)

direct materials $3,900
direct labor $2,340
variable overhead $208

- special machine ($457)

profit from special order $2,637

Helen, a manager for Marshall Manufacturing, spends much of her time reviewing the global, technological, socio-cultural, competitive, and economic factors that can influence the success of her firm's marketing efforts. Helen's efforts indicate that she is involved with environmental scanning.

Answers

Answer:

The statement is: True.

Explanation:

Environmental scanning refers to the analysis companies make of the immediate and further atmosphere that will allow them to spot threats to counteract or mitigate them and opportunities from where the firm can make a profit. Organizations engaging environmental scanning constantly review different mediums of communication and conduct researches that will keep them up-to-date on market fluctuations.

Final answer:

Helen's role at Marshall Manufacturing involves environmental scanning which requires her to monitor various external factors that influence the company's marketing efforts. The emergence of technology and globalization has expanded competition and reshaped market dynamics, pressing businesses and workers to adapt for macroeconomic growth.

Explanation:

Helen, a manager at Marshall Manufacturing, is actively engaged in environmental scanning, a crucial process in business management that involves analyzing various factors that may impact the company's marketing strategies and overall success. The actions she takes to examine global, technological, socio-cultural, competitive, and economic influences are a testament to this activity's importance. Crucial shifts in how we define markets, primarily due to advancements in technology and globalization, have opened up local businesses to a world of increased competition and innovative approaches to business-to-business relationships via online platforms.

This competitive environment encourages both individual workers and firms to seek improvements and invest in human and physical capital, which can lead to macroeconomic growth. The need to stay ahead in technology and to participate in the global marketplace invariably affects local market dynamics and corporate decision-making processes.

Learn more about Environmental Scanning here:

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Most states restrict the number of hospitals in a given geographic area under "Certificate of Need" (CON) laws. These laws require any new hospital facility to provide evidence that there is a demand for its facility that is not currently being met by the existing healthcare facilities in that geographic market. Identify the market inefficiency that these CON laws are trying to fix.

How does restricting the number of hospitals correct this inefficiency? Explain briefly.

Answers

Answer: The answer is provided below

Explanation:

The certificate of need, is a legal document in the United States that is required in many states and federal jurisdictions before proposed expansion, acquisitions, or the creations of healthcare facilities will be allowed.

a. The market inefficiencies which will be eliminated by the certificate of needs laws are that:

The absence of certificate of needs laws will have resulted in an unregulated market competition among the hospitals. This competition could result into medical providers over-investing in medical equipments and facilities. This will lead to an increase in the demand for the equipments which in turn, leads to rise in the equipments costs and the burden caused by the rise in price is shifted to the patients in form of high prices which could lead to exploitation.

b. Restricting the number of hospitals can correct this inefficiency because the laws will help reduce competition among the hospitals which will help reduce demand for healthcare equipments.

This will help in pushing the market toward equilibrium over time whereby healthcare delivery are more affordable to people.

Prepare financial statements from an adjusted trial balance (LO3-5) [The following information applies to the questions displayed below.] The December 31, 2021, adjusted trial balance for Fightin' Blue Hens Corporation is presented below.
Accounts Debit Credit
Cash $ 11,200
Accounts Receivable 142,000
Prepaid Rent 5,200
Supplies 26,000
Equipment 320,000
Accumulated Depreciation $ 127,000
Accounts Payable 11,200
Salaries Payable 10,200
Interest Payable 4,200
Notes Payable (due in two years) 32,000
Common Stock 220,000
Retained Earnings 52,000
Service Revenue 420,000
Salaries Expense 320,000
Rent Expense 16,000
Depreciation Expense 32,000
Interest Expense 4,200
Totals 847,800 876,600
Required:
Prepare an income statement for the year ended December 31, 2021.
FIGHTIN' BLUE HENS CORPORATION
Income Statement
For the Year Ended December 31, 2021
Expenses:
Total expenses

Answers

Answer:

Fightin' Blue Hens Corporation

Income Statement

For the year ended December 31, 2021

Service Revenue $420,000

Operating expenses:

Salaries Expense $320,000
Rent Expense $16,000
Depreciation Expense $32,000 ($368,000)

Operating income $52,000

Other revenues and expenses:

Interest Expense $4,200 ($4,200)

Net income before taxes $47,800

*The totals of the trial balance sheet were added incorrectly, they both debit and credit total $876,600.

Valley Designs issued a 90-day, 6% note for $96,000, dated April 22, to Bork Furniture Company on account. Assume 360 days in a year when computing the interest. a. Determine the due date of the note. July 9 b. Determine the maturity value of the note. $ Feedback The due date is the date the note is to be paid. Remember the interest rate is stated on an annual basis, while the term is expressed as days. Assume a 360 day year. The maturity value is the amount that must be paid at the due date of the note. c1. Journalize the entry to record the receipt of the note by Bork Furniture. If an amount box does not require an entry, leave it blank. Accounts Receivable-Valley Designs Allowance for Doubtful Accounts Feedback The account receivable must be removed from the books and the newly issued note receivable recorded. c2. Journalize the entry to record the receipt of payment of the note at maturity. If an amount box does not require an entry, leave it blank.

Answers

Answer: Please see answer in explanation column

Explanation:

a) Due date = April 22+90 days = July 21

b) Maturity value = 96,000+(96,000*6%*90/360) = $97,440

c1) Journal entry for receipt of note by Bork Furniture

journal Debit Credit

Notes receivable $96,000

Account receivable $96,000

C2) Journal entry to record receipt of payment at maturity

journal Debit Credit

Cash $97,440

Notes receivable $96,000

Interest revenue $1,440 (97,440-96,000)

Childers Company, which uses a perpetual inventory system, has an established petty cash fund in the amount of $400. The fund was last reimbursed on November 30. At the end of December, the fund contained the following petty cash receipts: December 4 Freight charge for merchandise purchased $ 62 December 7 Delivery charge for shipping to customer $ 46 December 12 Purchase of office supplies $ 30 December 18 Donation to charitable organization $ 51 If, in addition to these receipts, the petty cash fund contains $201 of cash, the journal entry to reimburse the fund on December 31 will include: