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1 year ago

What is the role of profit in a business ?

Business

2 answers:

Dafna1 [17]1 year ago

8 0

Answer:

Profit equals a company's revenues minus expenses. Earning a profit is important to a business because profitability impacts whether a company can secure financing from a bank, attract investors to fund its operations and grow its business. Companies cannot remain in business without turning a profit.

harkovskaia [24]1 year ago

3 0

Answer:

Profit plays a huge role in business. business is run to gain profit .the main purpose of the business is to make profit if there is no profit in any business then it can no longer be run as it won't be possible to meet up the demands without profits.

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Bricktan Inc. makes three products, basic, classic, and deluxe. The maximum Bricktan can sell is 130,000 units of basic, 508,000

katrin [286]

Answer:

the total contribution margin if Bricktan chooses the most profitable sales mix is $27,000,000

Explanation:

It is important to note that the limiting factor identified is the production hours.

Step 1 Calculate Contribution per limiting factor of each product

Basic

1 unit requires 0.1 hours

Contribution per limiting factor = Contribution per unit / Quantity of limiting factor per unit

= $15/0.10

= $150

Classic

1 unit requires 0.125 hours

Contribution per limiting factor = Contribution per unit / Quantity of limiting factor per unit

= $25/0.125

= $200

Deluxe

1 unit requires 0.25 hours

Contribution per limiting factor = Contribution per unit / Quantity of limiting factor per unit

= $55/0.25

= $220

Step 2 Rank the products

1st = Deluxe

2nd = Classic

3rd = Basic

Step 3 Determine the production mix

Product Total hours demanded Balance

Capacity 134,000

Deluxe (230,000×0.25) = 57,500 76,500

Classic (508,000×0.125) = 63,500 13,000

Basic (130,000×0.1) = 13,000 0

Step 4 Calculate total contribution

Deluxe (230,000×$55) = 12,650,000

Classic (508,000×$25) = 12,700,000

Basic (130,000×$15) = 1,650,000

Total = 27,000,000

7 0

3 years ago

A rational economic decision: a) may or may not result in the largest economic payoff. b) is concerned with efficiency but not w

zlopas [31]

Answer:

The correct option is B

Explanation:

Rational economic decision is the process where the costs as well as the benefits of the various options are being compared in order to determine or evaluate the which option is rational. Rational decisions have total benefit greater than or equal to their cost. So, the rational economic decision concerned with the efficiency not with the fairness or equity.

7 0

3 years ago

HELP! ASAP!! Ben helps people choose the right insurance policy and sets up their policies. He is:

wlad13 [49]

Answer:

The correct answer would be A, An Insurance Agent.

Explanation:

An Insurance agent is an agent who helps people choose the right insurance policy and sets up their policies. Insurance Agent can be an independent person selling Insurance policies for commission or can be an employee of the insurer company. This person acts as an agent and help people in deciding which policy to choose according to their needs and wants. He also sets up their policies. For example, if a person is married and has children, the insurance agent may ask him to choose the education insurance for his children. He may also ask him to pick the life insurance policy to get him family secured after his demise. So an insurance agent not only helps people choose their policies but also helps them set up.

6 0

2 years ago

Research studies indicate that:

dezoksy [38]

Answer:

Explanation:

Research studies indicate that U.S. producers gain more from tariffs than U.S. consumers lose. This is mostly because many intermediaries must pay various different tariffs including the consumer which all go to the producers, and therefore allowing the producers to gain more from the tariffs that the U.S. consumers will spend paying them.

8 0

2 years ago

The p/e ratio can be interpreted as ""the number of years’ earnings to pay back purchase price"" True or False

ICE Princess25 [194]

Answer:

True

Explanation:

P/E ratio is the price to earning ratio. Investor look into this ratio before investing or buying share of the company as it shows the market value of the shares or demand of the shares in the market. If ratio is higher then investor anticipate the growth of the company´s earning in the future, it also show investors are willing to pay higher price for each dollar earning of the company.

Price earning ratio= $\frac{market\ value\ price\ per\ share}{earning\ per\ share}$

7 0

3 years ago

What is the role of profit in a business ?​

What is the role of profit in a business ?