Answer:
The answer is $30000
Explanation:
$ $
Sales 195000
<u>Less cost of sales</u>
Opening stock 12000
<u>Add</u> purchases <u> 97000</u>
109000
<u>Less </u>closing stock <u>6000</u>
<u>103000</u>
Gross profit 92000
<u>Less</u> operating expenses <u>62000</u>
Operating income <u>30000</u>
The operating income is<u> $30000</u>
3. For a perfectly competitive market to function properly, buyers and sellers must have access to adequate information. Adequate information is such information that the purchaser considers important for him. So the purchaser, company or investors should have an opportunity to get the information how it is.
4. Natural monopoly can be explained like the situation where one company can supply market's entire with some unique raw materials or technology. So there can't be more than one company which provides this material or technology. According to this, I think the answer is diamonds.
5. As far as I remember, oligopoly is a market that has a few firms dominating the market. That means there is a small competition as there are small number of buyers and sellers.
6. If my memory serves me well, economies of scale happen <span>when a firms' long run average costs decrease with output. So if there is no economies of scale, I'm pretty sure that costs go up.
7. I think that correct definition looks like this: Combination of two or more companies in a single firm is called a merger. Resources of both companies are pooled together, and the owners of each company remain owners. There are to types of merger entities:
-Horizontal integration - if the merged companies are competitors.
- Vertical integration - if the companies are supplier and customer.
8. I am definitely sure that the answer is: </span>Offering products of different tastes and shapes is an example of non-price competition. That means that the competing companies wouldn't challenge by lowering the prices. Every competitor will focus on highlighting benefits of their product, to show that their product is better than another one.
9. The controller of a monopoly sets the price of goods by charging the price at which the profit is maximized. Monopoly is a firm which has no competition, so they doesn't have to worry about losing their customers. Company can set monopoly price which is pretty much higher than products marginal cost. That allows company to have maximum profit.
10. Many critics argue that government efforts to regulate industries have caused inefficiencies. Inefficiency means that the company can't achieve enough productivity. This caused because of high taxes, bureaucracy and other factors.
11. This agreement is called price-fixing. Companies which have come to this conspiracy can't sell goods below fixed price. There are many way to fix price by setting the price high or low. That leaves customer no choice and makes him to buy product at the fixed price.
12. D<span>eregulating industries is not a method that the government uses to intervene and prevent firms from controlling the price and supply of important goods. Deregulation of industry means that government power in a particular industry is reduced. Deregulation removes barriers to competition.
13. I think, I'd go with this: </span><span>Price Fixing, Collusion, And Cartels. Oligopolies can arrange those three together and that lets them to charge prices like monopoly. Government stays sharp with oligopolies using this method.
14. I think it's obviously a start-up costs. Every business need money to set it up. But all of them are different and require different types of costs. So it would be appropriate to create a business plan that helps to consider different start-up costs for your business.
15. I'm 100% sure, that the answer is: C</span><span>ompared to a market with perfect competition, a monopoly often has higher prices and fewer goods. Monopoly usually provides unique raw materials and technologies. As I've mentioned before, monopoly has no competition and it lets company to charge high prices for their goods.
16. I think that the </span><span>lack of technological know-how can't prevent the company being competitive as there's not the most important factor in a particular business.
17. As far as I remember, efficiency is one of the main characteristics of competitive market, which could be achieved with minimum government intervention.
18. According to what I've mentioned above about oligopoly, correct answer should be: E</span>conomists usually call an industry an oligopoly if the four largest firms produce at least 70–80 percent of the output.
19. As I've mentioned it in question 6. total cost curve with economies of scale will decrease on the increasing output. But it refers to firms long run average total cost.
20. I'm definitely sure that the answer is: <span>It has reduced start-up costs for many businesses. Because with the Internet, there's no necessary to set up brick and mortar business. You can just build your business online by making a website. This is a huge economy.</span>
Answer:
c. identification of the basic appeal for markets
Explanation:
As John is an inexperienced businessman and wants to sell his Zulu doll product, a toy for children who have less than 8 years in every part of the world and want to keep the cost low
So first thing he should do is feasible study whether his product is feasible or not and then identify the market with respect to the price, quality, competitors, etc so that he get a good idea
Answer:
The steps to reaching your goals are:
Step 1: What is your goal?
Step 2: What is your why?
Step 3: What will it cost you?
Step 4: What is your action plan?
Step 5: How will you stick to the plan?
Explanation:
Step 1: What is your goal?
You have to be clear on what you want. Take for instance, you dream of buying your own car, write it down.
Step 2: What is your why?
State reasons why you need a car of your own. Is it for business runs or to aid your movement? you have to specify all the reasons.
Step 3: What will it cost you?
Do a market survey for best prices and car options.
Step 4: What is your action plan?
Can you afford it immediately or would you prefer to save up, pay in installments, etc
Step 5: How will you stick to the plan?
Give yourself targets according to your action plan and put yourself in check to ensure that you stick to the plan.
Answer:
Allocated MOH= $420
Explanation:
<u>First, we need to calculate the predetermined overhead rate:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (253,600/31,700) + 6
Predetermined manufacturing overhead rate= $14 per machine hour
<u>Now, we can allocate overhead to Job L716:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 14*30
Allocated MOH= $420
