Gap Analysis is a type of activity in which an organization attempting to measure the difference between its customers’ expectations and experiences encourages customers to call a 24-hour toll-free hotline.
What is Gap Analysis?A gap analysis is a process of asserting the performance of a particular business unit to check or determine whether the business requirements or objectives are met, if not what steps should be taken to meet them. A gap analysis is used by the companies to compare their current performance with their expected performance. Steps involved in Gap Analysis are Identify the current state, Identify the future state, identify the gaps, evaluate solutions, implement change.
A gap analysis is useful when the companies are not using their resources, capital, or technology to their full potential. Gap analysis is used in finding the difference between rare sensitive assets and liabilities. A gap analysis is also called need analysis for any organizational type.
The types of Gap analysis are Market Gap analysis, Finance /Profit Gap Analysis, Skill Gap Analysis
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forrester company is considering buying new equipment that would increase monthly fixed costs from $160,000 to $190,000 and would decrease the current variable costs of $80 by $10 per unit. the selling price of $140 is not expected to change. forrester's current break-even sales are $440,000 and current break-even units are 10,200. if forrester purchases this new equipment, the revised contribution margin ratio would be:
The revised contribution margin ratio would be 0.40.
new BEP in units = 3,750
Contribution Margin Ratio 0.40
The variable cost decrease by $10 to $60 from 70
The fixed cost increase by 30,000 to $150,000 from $120,000
sales remains at $100
[tex]\frac{Fixed cost}{Contribution margin} =break even point units[/tex]
[tex]\frac{Contribution margin}{Sales Revenue} =Contribution margin ratio[/tex]
[tex]Sales revenue- Variable Cost=Contribution Margin[/tex]
100 - 60 = 40 CM Each units contribution is $40
40/100 = 0.40 CMR for each dolalr of sales 40 cents are contribution
150,000/40 = 3,750 by selling 3,750 the company can afford to pay their fixed cost.
The difference between a company's sales and variable costs, represented as a percentage, is the contribution margin ratio. The total income that can be used to cover fixed costs and turn a profit is represented by an entity's total margin.
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xyz is a publicly traded company and its stock has been doing well for the last several years. xyz is planning to expand into new markets and would like to raise additional capital to finance this expansion. how may this be done?
This can be done if XYZ is planning in setting up a new manufacturing plant and raising money through Shares.
The practise of obtaining money through the selling of shares is known as equity financing. Companies raise money because they can need it to pay expenses in the short term or because they have a long-term objective and need money to invest in their expansion.How can shares be sold to raise money?
purchasing shares A mature corporation can also raise money by selling shares in their business. For a certain sum, an investor can purchase firm shares, thus giving them ownership in the business. As the business expands, this enables investors to share in the profits.To learn more about Equity financing, click the links
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which of the following internal record-keeping methods can a parent choose to account for a subsidiary acquired in a business combination? multiple choice initial value, equity, or partial equity. initial value, lower-of-cost-or-market-value, or equity. initial value, equity, or book value. initial value, lower-of-cost-or-market-value, or partial equity. initial value or book value.
Initial value, equity, or partial equity can a parent choose to account for a subsidiary acquired in a business combination.
What is business combination?
A business combination is a deal in which one company acquires control of another (the acquiree). Business combinations are a frequent technique for organisations to expand in size, rather than organic (internal) growth. Combinations can be utilised to quickly gain market share, expand product lines, and enter new markets. A business is an integrated set of activities and assets that can offer a return on investment in the form of dividends, cost savings, or other economic benefits to investors. A normal business has inputs, operations, and outputs.
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you have been asked to provide a quick analysis that will calculate the internal rate of return of the stream of cash flows depicted below. if the discount rate is 10% per year, what is the irr of this proposition? express your answer as the closest whole percent.
Rate of Return - So this answer is very close to zero, So any other answer given answer 29% and 35% will not be true since if be apply these values NPV will go further negative. so the answer is 24%
What is Rate of Return?
A rate of return (RoR) is the net profit or loss of an investment over a specific time period represented as a percentage of the investment's starting cost.
When calculating the rates of return, you are determining a percent change from the beginning to the end of the period. A rate of return (RoR) can be used to any investment scheme, from property investment to securities, stocks, and fine art. The RoR works with any asset as long as it is purchased at one moment in time and generates cash flow at a certain point in the future. Investments are evaluated in part based on past rates of return, that can be compared to assets of the same type to decide which investments are most appealing.
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suppose that belham company's fixed administrative costs increased to $50,000. what is the new break-even point in units? fill in the blank 1 of 1$ how many units must be sold to earn operating income of $14,300? fill in the blank 1 of 1$
if the fixed administrative expenditures for the Belham Company rose to $50,000. [tex]\frac{1}{37500}[/tex]represents the updated break-even point in units.
Fixed costs: costs like rent that are unrelated to sales volume, that $1
Variable costs: costs like the cost of producing the goods that are based on a sales volume of $14,300
The item has a retail price.
Breakeven Point in Units defines as,
= [tex]\frac{Fixed Costs}{(Price - Variable Costs) }[/tex]
The entire fixed costs divided by the difference between the unit price and variable costs yield the breakeven threshold, in other words. It should be noted that in this method, price and variable costs are expressed as per-unit expenses, or the cost of each sold unit of a product, while fixed costs are expressed as the firm's total overhead.
∴ [tex]\frac{1}{50,000-14,300}[/tex]
= [tex]\frac{1}{37500}[/tex]
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economic growth is the amount that the capital stock increases in a given year. b. economic growth is the increase in the amount of consumption goods per capita. c. economic growth is increases in per capita real gdp measured by its rate of change per year. d. economic growth is the increase in the number of people working in a year.
Economic growth can be described as (C) the increases in per capita real GDP measured by its rate of change per year. It is also can be described as the increase or improvement in the inflation-adjusted market value of the services and goods produced by an economy over a certain period of time.
Economic growth can be caused by several main factors, such as land, capital, entrepreneurship, and labor. Economic growth also can be caused by two main sources of economic growth, such as growth in the productivity (output per hour worked) of that workforce and growth in the size of the workforce. These two main source can increase the overall size of the economy. But the source for increase per capita GDP and income is only strong productivity growth.
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according to the company's records, the conversion cost in beginning work in process inventory was $15,660 at the beginning of september. additional conversion costs of $526,524 were incurred in the department during the month. the cost per equivalent unit for conversion costs for september is closest to: (round off to three decimal places.)
WIP, or "work in progress," is a supply chain management phrase used to explain the costs of incomplete goods in the production process. As previously indicated, the term "work-in-progress" is occasionally used to describe assets that will take a long time to complete.
Answer: $0.873
Process of Starting Work 18,000. During the month, manufacture of more units began. 81,000 Less at the end work being done (17,000) and finished and moved-out units for the month 82,000. Moved on to the following department 82,000. Add finishing up 13,600 of the 17,00 units that are 80% complete. 95,600 equivalent units of output. Starting a current project will cost $15,264. Cost additions made during the time 68,208
Cost in full: $83,472
$95,600 in equivalent units of production
$83,472/$95,600 = $0.873 for the total units/equivalent units of production.
The balance in WIP refers to total production costs incurred for partially completed goods. WIP is a concept used to characterize the flow of manufacturing costs from one area of production to another.
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explain a contra account by filling in the following blanks. a contra account is an account that is linked with another (report/account/statement). it has a(n) (similar/opposite) balance and is (added/subtracted) to/from the other account's balance.
An account used in a general ledger to lower the value of a connected account is called a contra account.
What is a contra account?Transactions involving cash and a bank account are referred to as contra entries. In other words, a contra entry is any entry that has an impact on both bank accounts and cash. Contra is the reverse in Latin. It is more commonly referred to as a contra voucher.
An account used in a general ledger to lower the value of a connected account is called a contra account. They can be used to report a decrease or write down in a different contra account that nets to the current book value while maintaining the historical value in the main account.
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According to the etextbook, _____________ certification of your company can prove to other companies that your company is committed to sustainability at an organizational level.
According to the etextbook, ISO 14000 certification of your company can prove to other companies that your company is committed to sustainability at an organizational level.
In the field of business, ISO 14000 can be described as a certification that helps in the management and organization of a business. By this certification, a business can claim that they operate under the organizational level.
ISO 14000 helps to work under environmental regulations and comes up with ways to increase the sustainability of a company.
This certification acts as a proof to claim to other organizations that your business has to be regarded at the company level.
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according to the tannenbaum and schmidt model of situational leadership, what are the factors managers should consider before deciding how to lead? (choose every correct answer.)
The relationship between a manager's level of power and the degree of flexibility they decide to give their workforce is depicted by the Tannenbaum and Schmidt continuum. As the team's flexibility increases, the manager's authority should decrease.
Robert Tannenbaum and Warren Schmidt, contingency theorists, claimed that leadership behavior varies along a continuum and that the level of follower involvement and participation in decision-making grows as leaders move away from the authoritarian extreme (1958, 1973).
Taylor and Schmidt The manager's amount of power and the degree of flexibility they grant their staff are correlated, as shown by the continuum model.
According to the follower, the situational leadership model tackles four different leadership philosophies: selling, telling, and influencing.
Participating.
Delegating.
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has preferred stock that pays a dividend of $1.25every year. if the discount rate on investments like this is 6.2%, what is the value of the preferred stock?
A unique class of stock known as preferred stock does not grant voting rights but pays dividends according to a predetermined timetable. Preferred stock incorporates regular income and ownership in the company into one investment that has features of both common stock and bonds.
How is the preferred stock market value determined?Here is a simple equation to determine the value of preferred stock: Cost of Preferred Stock = Dividend on Preferred Stock (D) / Price of Preferred Stock (P). The amount used to determine the dividend is equal to the par value of one preferred stock share. In other terms, par value refers to a portion of stock's face value.Divide the dividend percentage by the par value of the preferred stock. For instance, if the stock was issued at $40 per share and the dividend rate is 7.5 percent, the yearly dividend is $3 per share.The amount used to determine the related dividend for each share of preferred stock is its par value. Because of this, the issuing corporation must pay $50 per year for as long as the preferred stock is outstanding if the par value of the shares is $1,000 and the dividend is 5%.To Learn more About Preferred stock refer to:
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all of these positions are used to create a zero-cost collar except a) writing a call option on the stock. b) purchasing a put option on the stock. c) purchasing a call option on the stock. d) a long position in the stock.
Positions are used to create a zero-cost collar except purchasing a put option on the stock.
What Is a Zero-Cost Procedure?
The term zero-cost procedure alludes to an exchanging or business choice that involves no cost to execute. A zero-cost system costs a business or individual nothing while at the same time further developing tasks, making processes more effective, or lessening future costs.
What is a zero-premium collar?
A zero-cost collar is a choices collar methodology that is intended to safeguard a broker's possible disadvantage. It does this by using call and put choices which, basically, counterbalance one another. While it will set a limit for potential misfortunes emerging from the exchange, it will likewise cover possible benefits.
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carrie bought a house five years ago for $120,000. at that time she borrowed $110,000 from her bank. the house is now worth $142,000. her pmi will automatically be dropped when her mortgage balance drops to:
The sum of all a person or company's assets, minus any obligations or liabilities, is their net worth.
What is the formula for net worth?
All assets are subtracted from all liabilities to determine net worth. Assets are things owned that have monetary value, while liabilities are things like loans, accounts payable (AP), and mortgages that use up resources.
Is a high net worth a sign of wealth?
Well, Americans believe that a person is considered wealthy if they have a net worth of $1.9 million, as stated in Schwab's 2021 Modern Wealth Survey (opens in new tab).Your net worth is the difference between your assets and liabilities.)
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a cereal manufacturer has different products for children and adults. it applies a different marketing strategy for each of these customer groups. which segmentation base is the company using to divide its market in this case? multiple choice lifestyle demographic psychographic geographic behavioral
Statistics that characterize populations and their traits are known as demographics. The study of a population based on characteristics like age, race, and sex is known as demographic analysis
Explain about the demographic?Businesses use demographics, or the socioeconomic features of a population, to determine the product preferences and purchase patterns of their customers. Companies can create a profile of their consumer base using the characteristics of their target market.
A few examples of demographic data include age, race, ethnicity, gender, marital status, income, education, and employment. Survey questions are an easy and effective way to collect this type of information.
Businesses use demographic data to have a better understanding of the characteristics of the consumers of their products and services. Based on their age, location, gender, employment status, income, and a host of other characteristics, demographics can help you pinpoint the individuals who are most drawn to your brand.
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green thumb nursery has 39,000 shares outstanding at a market price of $63.29 per share. the earnings per share are $3.29. the firm has total assets of $334,000 and total liabilities of $193,000. today, the firm announced a share repurchase for $89,000 of its stock. what is the earnings per share after the repurchase?
The earning per share after the repurchase = $668.7199
Earning per share :Earnings per share is the financial value of earnings per outstanding share of common stock for a company. It's a crucial measure of commercial profitability and is generally used to price stocks. Earnings per share( EPS) is a company's net profit divided by the number of common shares it has outstanding. EPS indicates how important plutocrat a company makes for each share of its stock and is a extensively used metric for estimating commercial value.
Earnings per share or EPS is an important fiscal measure, which indicates the profitability of a company. It's calculated by dividing the company's net income with its total number of outstanding shares.
Simplifying :Earnings per share after the repurchase =EPS before repurchase × Number of shares before repurchase ÷ (Number of shares before repurchase - Share repurchase amount ÷ Share price)
=3.29 × 334,000÷ (193,000- 89,000 ÷ 63.29)
= 1098860 ÷ 1643.229
= $668.7199
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julie orzabal deposits $5000 in a savings account offering 5.125 percent compounded daily. assuming she makes no further deposits, what will be the balance in her account after 5 years?
The balance in her account after 5 years is calculated to be $6460.25 if she deposits $5000 in the saving account.
The balance in her account can be determined by using the formula of compound interest;
A = P[1 + (r/n)]^nt
Here A represents the final amount, P represents the initial balance, r represents the interest rate, n represents the number of times interest was applied per time period and t represents the number of time periods that have passed
As she deposited $5000 in the savings account offering 5.125% compounded daily, substituting these values in the equation as follows;
A = 5000 [1 + (0.05125/365)]^(5)(365)
A = 5000 [1 + (0.000140411)]^1825
A = 5000 (1.000140411)^1825
A = 5000 × 1.29205
A = $6460.25
Hence, the balance in her account will be $6460.25 after 5 years.
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If a company using competitive pricing sets its prices higher than its competitors, it should offer extra Blank Space __________.
Answer:
It should offer extra Features
the managers of a production line that fills cereal boxes would like to reach a six sigma level of quality in terms of product weight. the desired range of output extends from 10 to 16 ounces. in order to reach six sigma quality, what would the maximum standard deviation of output need to be?
The maximum standard deviation of output needs to be will be 0.5 ounces
The deviation is a measure used in statistics and mathematics to find the difference between the observed and expected values of a variable. The deviation is simply the distance from the center point.
Sentence Examples of Deviation
It was a departure from his usual routine for him to drink juice instead of coffee. The pattern deviates significantly from the norm.
A deviation is defined as any unwelcome event that deviates from the approved processes, procedures, instructions, specifications, or established standards.
Deviations are possible during the manufacturing, packing, sampling, and testing of pharmaceutical products. Deviations are classified into three types: critical, major, and minor.
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you realize that the first step in the business information process is deciding how to acquire the data needed to support your suggestion to frank. how will you acquire this specific data?
Customer Relationship Management is shorthand for CRM. It is a tool for managing interactions with current and potential clients.
A CRM framework assists associations with building client connections and smooth out processes so they can increment deals, further develop client care, and increment productivity.
What is the purpose of a CRM system?
Customer Relationship Management is shorthand for CRM. It is a tool for managing interactions with current and potential clients. Organizations can improve customer service, increase profitability, and build relationships with customers through the use of a CRM system.
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a company using the periodic inventory system has the following account balances: inventory (beginning of the year), $3,874; freight-in, $608; purchases, $14,424; purchases returns and allowances, $2,521; purchases discounts, $250. the cost of merchandise purchased is
With initial purchase cost of $14,424, freight: $608, returns and allowances: $2,521 and discount: $250, the net cost of merchandise purchased is $12,261
Net cost of merchandise purchased = initial purchase cost + freight - returns and allowances - discount.
The inventory is not included in the calculation of the cost of goods purchased.
Data from the problem:
initial purchase cost = $14,424
freight-in = $608
return and allowances = $2,521
discount = $250
Hence,
Net cost of merchandise purchased =$14,424 + $608 - $2,521 - $250
Net cost of merchandise purchased =$12,261
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Demand is the demand for a good or service that considers only the private benefits of its consumption.
When the use of a good or service benefits persons who were not engaged in its creation or consumption, this is known as a positive externality on consumption.
What is an illustration of consumption externalities?negative externalities of consumerism
Third parties may suffer unfavorable consequences when certain items, such as demerit goods, are consumed. Examples include excessive alcohol consumption, which can ruin someone else's night out, noise pollution, and cigarette smoking, which can lead to passive smoking.
When someone else's consumption has an explicit and direct impact on their utility function, or when they are directly impacted by learning about another person's consumption, this is known as a consumption externality in economics. This is so that businesses may more easily determine their cost and production strategies. Companies are aware of the optimal number of units to produce for each product based on the marginal benefit. Additionally, customers must support this move.
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to achieve the greatest value for the money being spent is value engineering and is typically completed in what phase of the project? group of answer choices commissioning pre-construction review of the work close out process
Value engineering is a process that is usually finished at the pre-construction stage of a project to get the most value for the money being spent.
Value engineering is a methodical, structured way to delivering essential project functionalities for the least amount of money. Value engineering encourages the replacement of components and processes with less expensive ones without compromising performance. It is only concerned with the functionality of various parts and materials, as opposed to their physical characteristics. Another name for value engineering is value analysis.
Value engineering is an organized, systematic method for delivering project requirements at the lowest possible cost. Value engineering encourages the replacement of components and processes with less expensive ones without compromising performance. Value engineering is sometimes divided into six parts or phases, with the first step being idea generation and the last being change execution.
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to prepare for advisers, which questions should the startup team consider? select all that apply. group of answer choices how will the adviser be compensated? what does the startup team need right now? does the candidate adviser care about your industry and solution?
To prepare for advisors, the startup team should consider all of the questions given in choices (a),(b), and (c).
A startup advisor is an expert who helps startups to complete strategic activities in the area in which the startups lack competence: financial, industrial, geographic, technological, etc. A valuable advisor is one who expands the expertise of startups and compensates for their shortcomings.
Finding a responsible and talented advisor among a large number of specialists is necessary in order to make the startups successful. For this purpose, startups should consider the following questions:
How will the adviser be compensated? : Figuring out how the startup advisor will be paid either through fees or equity.What does the startup team need right now? : Analyzing what services and knowledge the startup wants to gain from a startup advisor.Does the candidate adviser care about your industry and solution? : Evaluating if a startup advisor suits the company or project based on knowledge and skills he posses about the industry you are working in and the solution you are coming up with.You can learn more about startups at
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The balance on a credit card, that charges a 20%
APR interest rate, over a 1 month period is given in
the following table:
Days 1-5: $200 (initial balance)
Days 6-20: $350 ($150 purchase)
Days 21-30: $150 ($200 payment)
What is the finance charge, on the average daily
balance, for this card over this 1 month period?
finance charge = $ [?]
Round to the nearest hundredth.
Enter
The balance on a credit card, that charges a 20% APR interest rate, the Finance charge is given as
$4.3055
This is further explained below.
What is the APR interest rate?Generally, The interest rate that is applied to a loan, mortgage loan, credit card, etc. is referred to as an annual percentage rate of charge, which sometimes corresponds to a nominal APR and sometimes corresponds to an effective APR.
The annual percentage rate of charge is the interest rate for the entire year, as opposed to just a monthly fee or rate. It is a fee for financing that is presented in the form of an annual rate.
Interest rate APR = 12%
Average balance = ((200*5)+(350*15)+(150*10))/30
Average balance = $258.33
Average balance*APR/12
Finance charge =[tex]\frac{258.33*20 \%}{12 }[/tex]
Finance charge = $4.3055
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should healthy hearts include the extinguishment of debt (i.e.,the notes) in its precombination financial statements or should cool care include it in its postcombination financial statements?
Financial statements are written records that convey the business activities and the financial performance of a company. Government organisations, accounting companies, etc. frequently audit financial statements to guarantee accuracy and for tax, financing, or investing purposes.
What is Financial statements ?Financial statements are official records of a person, business, or other entity's financial situation and actions. An easy-to-understand format is used to provide pertinent financial data in a systematic manner.
Financial statements are intended to give information about an enterprise's financial situation, performance, and changes in financial position that will be helpful to a variety of users in making financial decisions. Financial statements must to be comprehensible, pertinent, trustworthy, and similar. An organization's financial situation is directly correlated with its reported assets, liabilities, equity, income, and expenses.
Financial statements are meant to be understood by those who are willing to study the information carefully and who have a basic understanding of accounting, business, and economics.
Government financial statements may be recorded, measured, and presented according to different rules than those that apply to businesses and even non-profit organisations. They can choose between the two accounting techniques of accrual accounting and cost accounting, or they can combine the two (OCBOA).
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an interest rate of 15% is used to evaluate a new system that has a first cost of $212,400, annual operating and maintenance costs of $41,200, annual savings of $94,600, a life of 6 years, and a salvage value of $32,500. the percentage error in the system's present worth from this is closest to what value?
The closest value to the percentage mistake in the system's current worth is 300%. Here, is the attached solution.
What is Cash flow?
The term "cash flow" describes the flow of funds into and out of your company on a monthly basis. It's one of the most reliable measures of the financial stability of your company. The income produced by customers, clients, and subscribers who buy your goods and services is included in your cash flow, as is the income produced by the collections made by your accounts receivable department. Cash flow also includes the money that your company spends on bills and other expenses. This could include, among other things, the cost of employee salaries, taxes, fees, and rent or mortgage payments for your business. Businesses should conceptualise its cash flow in a manner similar to how an individual might think of a bank account for personal use.To know more about Cash flow visit:
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product x: revenue $15.00 variable cost $2.50 product y: revenue $25.00 variable cost $10.00 total fixed costs $50,000 what is the operating income, assuming actual sales total 150,000 units, and the sales mix is two units of product x and one unit of product y?
Operating income is $1,950,000 if actual sales total 150,000 units, and the sales mix is two units of product x and one unit of product y.
Since the sales mix is 2 to 1 for X and Y respectively, product X has 2/3 of the sales and product Y has 1/3 of the sales.
Product X Product Y Total
Sales units 100,000 50,000 150,000
Revenue $1,500,000 $1,250,000 $2,750,000
Var. costs $250,000 $500,000 $750,000
Fixed costs= $50,000
Operating income = Revenue-Fixed costs-Var. costs
Operating income = $2,750,000- $50,000 - $750,000
Operating income = $1,950,000
When a firm manufactures more than one product, its percentage of sales is used to determine units sold based on the sales mix of each product.
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reengineering's goals include all of the following except: question 5 options: increasing productivity optimizing value to shareholders achieving quantum results expanding functions eliminating unnecessary levels and work
Reengineering's goals include all of the following except expanding functions.
What is expanding function?Equations in mathematics have a connection to expanding functions. A function is expanded into a series, or infinite sum, via a series expansion. It is a technique for computing a function that cannot be represented using only basic operators (addition, subtraction, multiplication, and division).
The resulting "series" is frequently capable of being approximated by limiting its terms to a finite set. The approximation will be easier to understand if fewer terms from the sequence are utilized. Often, an equation using Big O notation may be used to explain the resultant error (i.e., the partial sum of the missed terms). Additionally, an approximation for non-analytic functions will be made using the series expansion on an open interval.
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Gil_____ is under significant pressure to resign from the la city council because of his participation in a secretly recorded conversation which included racist remarks.
Given his involvement in a covertly recorded conversation that contained racial statements, Gil Cedillo is facing intense pressure to resign from the LA city council.
Why is LA city council member Gil Cedillo under so much pressure to step down?As a result of his silence during the contentious and divisive dialogue that left supporters heartbroken and opponents emboldened, he is now the target of widespread resignation calls and condemnation. Following a commotion over the racial and offensive remarks, Martinez and Herrera both resigned this week.
When did he intend to retire?After neighborhood activist Eunisses Hernandez won the District 1 primary in June, Cedillo had previously announced his resignation and will do so on December 11. According to the council member absence policy, he could continue serving on the city council until December 11 without attending.
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answer the question on the basis of the following total utility data for products l and m. assume that the prices of l and m are $3 and $4, respectively, and that the consumer's income is $25 units of l total utility units of m total utility 1 9 1 16 2 15 2 28 3 18 3 36 4 20 4 40 5 21 5 42 what level of total utility does the rational consumer realize in equilibrium?
A situation in which opposing forces are acting in balance or at rest. equitable distribution of all forces, effects, etc.; equal impact. emotional or mental equilibrium; equanimity: She lost it under the burden of the circumstances.
Explain about the equilibrium?The Latin term libra, which meaning weight or balance, is the origin of the word equilibrium. Several instances of equilibrium include: a book that is open and at rest. a vehicle that is going steadily. a chemical process where both the forward and backward rates of reaction are equal.
Equilibrium is essential for a market to be both efficient and balanced. A market cannot move away from its equilibrium price and quantity since it is maintaining a balance between the quantities provided and demanded.
All buyers and sellers are pleased once the market reaches equilibrium, and there is no longer any upward or downward pressure on the price.
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