Answer:
Economists do not assume that consumers and firms always make correct decisions, instead they assume that consumers and firms make rational decisions
Explanation:
This assumption that firms and consumers make rational decision is based on the economic rationality principle. The principle theorizes that people will usually consider actions, decisions and options based on logical thinking rather than other subjective elements such as morals, psychology and emotion. As a result of this principle economists assume that people will always make rational decisions.
The meaning of this is that consumers and firms would usually weigh the pros and cons of an issue before taking a decision and as described in the correct statement, rational decisions are logical decisions they do not necessarily mean they are correct decisions.
A consumer can make a logical decision to buy a product based on information made available but this may be a wrong decision because the information is misleading or wrong. It is a logical but incorrect decision.
Answer:
a.$92.30
b.27.55%
Explanation:
a. Computation for the contribution margin per pair
Sales 355.00 per pair
Less:Variable cost $262.70 per pair
Contribution margin $92.30 per pair
Therefore the Contribution margin per pair will be $92.30
b. Computation for the contribution margin ratio.
Using this formula
Contribution margin ratio=Contribution margin per unit/Selling price per unit
Where,
Contribution margin per unit =$92.30
Selling price per unit =$335.00
Let plug in the formula
Contribution margin ratio=$92.30/$335.00
Contribution margin ratio =27.55%
Therefore the Contribution margin ratio will be 27.55%
Answer:
The cash paid on June 24 is $8,754.25
Explanation:
The computation of the cash paid is shown below:
= (Merchandise purchase - returned goods) × ( 1 - discount rate)
= ($9,500 - $475) × ( 1 - 0.03%)
= $9,025 × 0.97
= $8,754.25
Since the company paid the amount within the discount period, so it can avail the discount benefit.
We deduct the discount rate from 1 as the percentage value is 100 so that accurate value can come.
Trader joes differentiate itself from competitors by offering top-quality foods obtained through sustainable agriculture. This business strategy implies that trader joes focus on gaining a market share and making up the loss in margin through increased sales.
According to the Cost Leadership article, Trader Joe's focuses on low-cost, high-quality products to attract customers' attention. Trader Joe's is a very small store less than 10,000 square feet.
Just Right Airline is probably sitting in the middle because it's basically trying to reconcile different strategic positions (high-quality features versus low price). Other airlines consistently pursue either differentiation or low-cost strategies.
Marriott has reduced its cost structure by distributing its manufacturing facilities across multiple hotel types, increasing the diversity and differentiated appeal of its hotel line.
Learn more about Trader joes at
brainly.com/question/24130059
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Answer:
COGS= $15,000
Explanation:
Giving the following information:
Purchase= 500 grills
Unitary cost= $75
Units sold= 200
<u>To calculate the cost of goods sold, we need to use the following formula:</u>
COGS= beginning finished inventory + cost of goods purchased - ending finished inventory
COGS= 0 + 500*75 - 300*75
COGS= $15,000
or;
COGS= 200*75= $15,000
