For the answer to the question above, I<u><em> believe the answer is </em></u><span><u><em>If Jason raises his price he would lose all his customers.</em></u></span>
Because a teenager could do that and he doesn't need an experience for lawn mowing and if you'll gonna increase your price. Be sure that you offer something additional or something special. A price hike in a competitive market is not good at all. Whether it's a big or a small business
Answer:
a. $11
b. $22
c. Range is $11 to $22
Explanation:
Part a
The lowest acceptable (minimum) transfer price is the price that is acceptable to the transferring division and out of a range of prices, it could be that which would be the best for the company.
Minimum Transfer Price = Variable Costs per unit - Internal Savings + Opportunity Cost
where,
Variable Costs per unit = $11
Internal Savings = $0
Opportunity Cost = $0
therefore,
Minimum Transfer Price = $11
Part b
The highest acceptable(maximum) transfer price is the maximum price that causes the receiving or buying division to breakeven. It could also be the price at which they could purchase the product in the market at arms length position.
therefore,
Maximum Transfer Price = $22
Part c
The best range of acceptable transfer prices must encourage goal congruence, must facilitate measurement of performance and divisions should function autonomously.
therefore,
The best range of acceptable transfer prices is within the Minimum and Maximum Transfer Price.
Answer:
Option D. purchase the shares of a Index fund.
Explanation:
The reason is that the index funds are itself a mutual fund investment and they follow preset rules which helps an ordinary investor to understand those rules easily. Furthermore, they are already a diversified investment, hence investing in the shares of mutual fund makes the investment risk diversified investment.
Answer:
$94,000
Explanation:
A local hardware store has explicit cost of $2 million per year
The implicit costs are $44,000 per year
The store earned an economic profit of $50,000 last year
Therefore, the store's accounting profit can be calculated as follows
Accounting profit = Implicit costs + economic profit
= $44,000 + $50,000
= $94,000
Hence the store's accounting profit is $94,000
Answer: B
The government cannot control interest rates and that is the reason is why the government cannot completely control the business cycle. This is so because interest rate controls the rate of consumer spending, borrowing and spending. Say interest is low, people will borrow more and spend more and this will have an impact in the rate of employment. Hence, in short if the government cannot control interest rate, everything depending on it, the economic cycle cannot be determined.
