What will most likely occur if a company eliminates an unprofitable segment when a portion of fixed costs are unavoidable?
a) Net income will increase.
b) The company's variable costs will increase.
c) Net income will decrease.
d) All expenses of the eliminated segment will be eliminated.
Answer: c) Net income will decrease.
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Specific performance is generally awarded:
A) Where the contract involves the sale of property that is unique. B) Only if provided for in a liquidated damages clause. C) In cases where nominal damages are also awarded. D) Only under the U.C.C. E) When the nonbreaching party requests it.
On average, how many customers are waiting in line to be served?
The local grocery store consists of two cashiers. The customers arrive at the checkout according to the Poisson distribution and the service times are based on negative exponential distribution. The average customer service time is 4 minutes and the average time between the arrivals of successive customers is 3 minutes. Assume that customers equally divide themselves between the two cashiers.