Answer:
True
Explanation:
The purpose of any business is to make profit, which is from the difference between revenues (price of product multiplied number of product sold) with the cost of goods sold (average total cost multiplied number of product sold).
In short, the profit = (price - average total cost) x number of product sold.
Normally the price must be above/ higher than cost, so that the firm can have profit. Sometime the price in the market go down, so the firm have have to adjust down its price also to maintain customer's purchases.
Once its price is down, but the firm's average total cost is still same as previous, the firm can not have profit as previously. The firm may bear this situation as long as its capital capacity allowed, but will not be too long.
Answer:
Dividend in year 7 will be calculated as follows:
D3 = Do(1+g)n = 1.10(1+0.08)3
D7= Do(1+g)n(1+g)n = 1.10(1.08)3(1+0.02)4 = $1.4999
Explanation:
In the first instance, we need to calculate dividend in 3 year's time based on current dividend paid at 8% growth rate. Thereafter, we also need to calculate dividend from from year 4 to year 7(4 years) based on the new growth rate of 2%. The combination of these growth regimes gives the dividend in year 7.
Question Options:
constant returns to scale.
diseconomies of scale.
rising fixed costs.
economies of scale.
Answer: ECONOMIES OF SCALE.
Explanation: Economies of scale in business refers to the characteristics of a production process in which an increase in the scale of the firm causes a decrease in the long run average cost of each unit. Here, production is efficient and the best value is received from the resources available thereby making costs per unit of output will be larger.
Economists at jet consulting would expect the demand curve for campbell's soup to "shift to the right", causing the equilibrium price to "increase" and the equilibrium quantity to "increase".
The demand curve is a graphical portrayal of the connection between the cost of a good or service and the amount requested for a given time frame. In a typical representation, the cost will show up on the left vertical pivot, the amount requested on the horizontal axis.
At the point when the quantity of cash demanded increases, the cost of cash (interest rates) likewise increments, and causes the demand curve to increase and shift to the right.
Answer:
Option (d) is correct.
Explanation:
Given that,
Sales revenue = $470,800.00
Cost of goods sold = $217,766.40
Selling expenses = $86,199.20
Administrative expenses = $74,942.80
Cost of Goods sold (%):
= (Cost of Goods Sold ÷ Sales Revenue) × 100
= (217,766.40 ÷ 470,800.00) × 100
= 46.25%
Therefore, the cost of goods sold percent is 46.25.