Answer:
The correct answer is Cost leadership.
Explanation:
Cost leadership are those strategies with which products similar to those of other companies are offered at a lower cost, that is, a certain company is considered to be the lowest cost producer in its industrial sector in order to achieve a differentiation.
At lower prices than its rivals, the leader's position translates into higher returns, however, standard products should not be sold ignoring the basis of product differentiation itself, since, if the customer does not perceive the product as comparable, The company must set very low prices in relation to the competition to achieve sales.
The sources to obtain this type of advantages are varied and depend on the structure of the industrial sector itself, including economies of scale, the use of proprietary technology, preferential access to the raw material, among others.
The cost leadership strategy aims to make a company the leader, rather than several companies struggling to reach that position, as this implies tough rivalry and competition that can have unfavorable consequences for all.
Answer: $100M
Explanation:
This is a bit of a trick question but when you come into contact with such questions remember this, stock splits do not change the total Market Capitalization. Market Cap is the total cash value of the company's stock in the market. A split would increase the number of shares outstanding but the market cap will remain the same because the shares will decrease in value.
Answer:
- $45000
Explanation:
Economic profit is different from accounting profit in the sense that former also takes into consideration the implicit costs, also referred to as opportunity costs unlike the latter.
Economic Profit = Accounting profit - Opportunity Costs
Opportunity costs are defined as the the cost of sacrificed or foregone alternative for pursuing a particular alternative. Such costs are implicit or notional as they are not actually incurred.
In the given case, Economic Profit = Revenues - Explicit costs - Implicit costs
Here, the implicit cost is $60,000 income foregone.
Thus, Economic Profit = $20,000(income) - $ 5000 (expense) - $60,000 (opportunity cost)
Economic Profit = ($ 45,000) or -$45,000.
Answer:
uh ok... whats the question?
Explanation:
i will help u after u tell meh.
Answer:
d. Owners' Equity is $30
Explanation:
The owners equity is the amount of money that is own by the owner of the business or the business itself minus all of the debts that the business has, in this example, Lily just sold $100 in products, generating a profit of $30, because she bought that for $70, but she owns $70 of those $100 to the local bank, so eventhough she has $100, only $30 are actually owned by the business so Owner´s Equity equals $30.
