Answer:
True
Explanation:
Economic profits takes into account the impact of both the explicit costs and implicit costs. Accounting profit only considered the impact of explicit costs.
Explicit costs refers to the costs which are incurred for operating a business. It includes all the expenses for doing the transactions and can be measured in monetary terms.
Implicit costs are also defined as the opportunity costs. Opportunity costs refers to the foregone benefit that could be obtained from the next best alternative.
Economic profit = Total revenues - Explicit costs - Implicit costs
Accounting profit = Total revenue - Explicit costs
Answer:
200 standard scooters and 600 standard scooters
Explanation:
The computation of the each type of scooter to break even is shown below:
As we know that
Contribution margin per unit = Selling price per unit - variable cost per unit
So for standard scooter, it is
= $55 - $30
= $25
And, for chrome scooter, it is
= $70 - $40
= $30
Plus, it is given that the ratio between standard scooter and chrome scooter = 1 : 3
Now the weighted average contribution margin per unit is
= $25 × 1 ÷ 4 + $30 × 3 ÷ 4
= $6.25 + $22.50
= $28.75
So,
Break even units = Fixed costs ÷ weighted average contribution margin per unit
= $23,000 ÷ $28.75
= 800 units
So for standard scooter, it is
= 800 × 1 ÷ 4
= 200 standard scooters
And for chrome scooter, it is
= 800 × 3 ÷ 4
= 600 chrome scooters
Answer:
product-line level
Explanation:
A product line refers to the marketing of the products which are related to the same brand name. The items are sold by the same company. Various products are sold under multiple product lines to increase the sale of the products. The product lines help in the distinction of the products from each other. Introduction of the product lines is a method of encouraging the sale of the products by the companies.
Answer:
The answer is b
Explanation:
Demand for money is the situation in which money are held in cash form without spending it. The demand for money is a derived demand in the sense that people do not spend all their salaries when they receive it at the end of the month. The portion of their salaries which they do not spent immediately they are received is what we referred to as the demand for money. There are three reasons for holding money which are
Transaction motive :This is the desire to keep money in order to meet the day to day transaction of business such as buying of foodstuff and to meet other family need .
Precautionary motive : This is the desire to keep money in order to meet the unforseen circumstances which are not planned for but which immediately occur, such as sickness, unexpected visitors, breakdown of one's car,
Speculative motive :This is the desire to keep money with the hope of using the money in making quick money. It is a money held with the hope of giving it out in form of loan if the interest is high and at a short period of time.for instance purchasing shares at a lower prices and re-selling it at higher prices .it also includes buying goods at a lower prices and re-selling at a higher prices for example cars.
Answer:
When ASI Inc. declared a dividend of $20,000,000, its market value increased from $8 ... Competitors have found it extremely difficult to imitate Gene Electronics Inc.'s ... CEO of JustFixIt Inc., a firm that merges technology with commercial hardware. She has been struggling with the decision to allocate her resources for the ...
Explanation: