The Herrestad Company has a classic problem: two products that use fixed overhead disproportionately ("Activity based costing", n.d.). That is, according to the data given in Table A below, product A uses more production runs and more sales reps than product B. Also, there are far fewer units of Product A, meaning that each unit requires a great deal of overhead resources to support. Although the sales price of Product A is high, and therefore one might think that they are charging enough to carry all this extra overhead attention, but profitability analysis indicates otherwise. Table A Use of fixed overhead resources by product line Productionruns(not$) Numberofsalesreps(not$) Total 100 25 ProdA 65 15 ProdB 35 10 Profitability will be reviewed in two parts, first we will analyze the contribution margin, and then product line profitability overall, including fixed costs.
Natural Monopoly Case Telecommunication Law & Regulation Natural Monopoly Case What is Natural Monopoly? The concept natural monopoly emerges when the production of service or product can be provided by one firm more efficient and cost effective than two or more firms. In a natural monopoly there is a high fixed cost and company must overcome large barrier to entry its market. An example of barriers that a company must sustain consists of high startup costs, specialized technology, or difficult licensing and regulation requirements in an industry, limit the number of possible entrants into the industry (Hill, 2014). This means that a company is able to provide the lowest price and in addition it’s one of the fewest company’s which is capable of overcoming the challenges of startup cost in order provide a cost effect product or service for its consumers.
But, our Ideal Gas Law method was more precise than crystallization from the previous week due to our newly found R-squared value of 0.8909. Our crystallization method only gave us a R-squared value of only 0.7735 which was the farthest value from
Although market prices for precious metals fluctuated wildly for JM's competitors, JM's costs were tied mainly to mining and production costs which were stable and significantly lower. The company misrepresented the accuracy their production processes to their largest customer, GM. While the actual accuracy of the process attaching precious metal to the catalytic converter was close to 0.3%, JM said the accuracy was 3%. This allowed JM to safely put 97.5g instead of 100g of platinum on a set volume of catalytic converters and still meets the contract. At that time, platinum was $400 per ounce.
Additionally, company hours are limited to times where purchasing is higher. These three elements all need to exist for the company’s strategy to succeed. If any of these were taken away, the company would be hard-pressed to keep business practices profitable. Even more impressive is how little debt the company is using to finance their growth. The product
So as you can see, it is not the highest paying degree, but definitely not the lowest. I would definitely look into and consider this in my search for career choices. As far as the benefit to the company is concerned, tuition reimbursement is huge. The fact that not many companies in today’s society even offer it, make it even more valuable. It can save a person upward of $60,000-$100,000 over the years that it takes to get a bachelor’s degree.
| | | Student Answer: | | It is generally more expensive to form a proprietorship than a corporation because, with a proprietorship, extensive legal documents are required. | | | | Corporations face fewer regulations than sole proprietorships. | | | | One disadvantage of operating a business as a sole proprietorship is that the firm is subject to double taxation, at both the firm level and the owner level. | | | | One advantage of forming a corporation is that equity investors are usually exposed to less liability than in a regular partnership. | | | | If a regular partnership goes bankrupt, each partner is exposed to liabilities only up to the amount of his or her investment in the business.
One of our major goals this year is to avoid expenses. That is why there is a 10 percent reduction in personnel and administration cost. In order for us to be effective cost must be avoided. Advertising was not chosen due to the cap put onto the publications/public information expenses. We cannot afford and will not be approved for extra advertising without research that proves that this advertising will increase revenues more than the cost.
E) a small percentage of companies in the industry are currently earning above-average profits, entry barriers are high, and buyers are not brand loyal. 7 INCORRECT Which of the following conditions generally raise the barriers to entering an industry? A) Low levels of brand loyalty on the part of customers and the presence of more than 20 rivals in the industry B) Rapid market growth, low buyer switching costs, and weak brand preferences and customer loyalty C) Product offerings that are pretty much standardized from rival to rival D) High capital requirements, difficulties in building a network of distributors-retailers and securing adequate space on retailers' shelves, and the likelihood that industry incumbents will strongly contest the efforts of new entrants to gain a market foothold E) The industry is not characterized by scale economies and/or sizable learning/experience curve effects and few firms in the industry hold key patents and/or possess significant proprietary technology not readily available to a
Yet they earn only one tenth of the world’s income and own less than one percent of the world’s property. They are among the poorest of the world’s poor." –Barber B. Conable Jr, President, World Bank. Why is it that women have all the rights of men in today’s world, however they are still treated unfairly on the basis of higher power. Women are expected to do all of the tasks as men, however in many cases their voices and opinions are left out when making decisions that are deemed as manly responsibilities.