Adding inventory to a process will increase the profit margin of the item. it is costly to hold inventory but inventory can also be useful in a process because: a. adding inventory to a process will shorten the average time a unit spends in a process. b. radio button checked1 of 4 adding inventory to a process can to reduce situations in which sales are lost due to uncertain demand. c. radio button unchecked2 of 4 adding inventory to a process is likely to increase quality. d. radio button unchecked3 of 4 adding inventory to a process will increase the profit margin of the item. e. radio button unchecked4 of 4

All else being equal, which is true about a firm with high operating leverage relative to a firm with low operating leverage? select one: a. a higher percentage of the high operating leverage firm's costs are fixed. b. the high operating leverage firm is exposed to less risk. c. the debt payments limit the high operating leverage firm's opportunities to turn a big profit. d. the high operating leverage firm has more debt.

The cook corporation has two divisions--east and west. the divisions have the following revenues and expenses: east west sales $ 603,000 $ 506,000 variable costs 231,000 300,000 traceable fixed costs 151,500 192,000 allocated common corporate costs 128,600 156,000 net operating income (loss) $ 91,900 $ (142,000 ) the management of cook is considering the elimination of the west division. if the west division were eliminated, its traceable fixed costs could be avoided. total common corporate costs would be unaffected by this decision. given these data, the elimination of the west division would result in an overall company net operating income (loss)

One country has a comparative advantage over another country in the production of a good if ithas a curved production possibilities curve and the other country has a linear production possibilities curve.has lower fixed costs than the other country. has a linear production possibilities curve and the other country has a curved production possibilities curve.is a lower opportunity cost producer of the good.