Answer:
a. $ 2.41 $ 2.00
Explanation:
Earning per share is the ratio of net Income of the business per outstanding share of the business after deducting the preferred dividend from net earning. It shows how much each stockholder earn against their each share in a specific period.
Earning Per share = Net Income / Outstanding numbers of shares
2017
EPS = $8,000,000/(2,000,000 x 2) = $2.00
As new stock is issued and stock split is declared so, outstanding numbers of shares are changed.
2018
EPS = $10,000,000 / [ ( 2,000,000 x 2 ) + ( 100,000 x 9 / 12 x 2 ) ] = $2.41
Answer:
The correct answers are:
a) Family owned restaurant
b) A manufacturer of cars
c) A company that invented a very comfortable razor
Explanation:
First of all, the family who owned a restaurant will be the one that would most likely engaged in advertising due to the fact that they provide a service that has to be known for the people of the community around the place and all the tourists that go that area, meanwhile the other familiy would obviously just sell its products to the better buyer that they could find.
Secondly, the manufacturer of cars would be the one that most likely engaged in advertising due to the fact that they found themselfs in a very competitive and oligopoly market that is the car market and therefore that they highly need to stand out their making them better than the ones from the competitors.
Finally, the company who invented a very comfortable razor would be the one who engaged more in advertising due to the fact that they known they have a better product that the rest of the competitors so they need to take advantage of that and make sure that the consumers know about it and with that they would sell more and therefore invest more in advertising as well.
Answer:
According to the economists, the resources are scarce and human wants are unlimited. So, it is difficult to satisfy each and every want of people. But according to the theory of abundance, we can overcome from this problem by division and specialization of labor. If there is a proper division of labor according to their specialization then this will increase the productivity and one can produce more goods with the same level of resources.
From this economic practice, we can overcome from the problem of scarce resources.
A price ceiling is when a government decides what the maximum price for a certain commodity or a product can be. It can be put to good use if the people are poor and cannot purchase a necessary product such as flour or water or similar. Then the government can help them procure it with a price ceiling.
Answer:
Gross profit equals $420,000
Explanation:
To get gross profit , we only discount the cost of goods sold from the Total sales
Gross profit Formula= net sales – cost of goods sold
Gross profit =$800,000- $380,000
Gross profit =$420,000
We use sales returns and allowances, sales discounts and operating expenses to get net income.
