Answer:
49%
Explanation:
Material mark up per dollar of material used = Target profit + Percentage of material purchasing , handling and storage
Material mark up per dollar of material used = 25% + (315,900/1,316,250 *100)
Material mark up per dollar of material used = 25% + 24%
Material mark up per dollar of material used = 49%
Goods sold is lower because less competition and then they price it higher because consumers don't have options.
That companies gain a competitive advantage by giving customers focus, cost leadership, and differentiation
<h3>
What is competitive advantage?</h3>
A firm seeks a competitive advantage when it aims to surpass its rivals in terms of profitability. An organization must be able to communicate to its chosen target market that it has a higher comparative or differential value than its rivals in order to establish and retain a competitive advantage. For instance, a business is likely to have a competitive advantage if it advertises a product at a lower price than a similar product from a rival. The same holds true if the marketed item is more expensive but has special characteristics that buyers are ready to pay for.
The SWOT (Strengths, Weaknesses, Opportunities, and Threats) analytical technique is credited to Albert Humphrey at the Stanford Research Institute. Porter's Five Forces is an alternative model that helps businesses understand their position within a competitive landscape.
Answer:
b. $4,908,000
Explanation:
According to the FASB GAAP, the straight line method is used in this given question which is shown below:
= (Original cost - residual value) ÷ (useful life)
= ($40,900,000 - $4,090,000) ÷ (15 years)
= ($36,810,000) ÷ (15 years)
= $2,454,000
In this method, the depreciation is same for all the remaining useful life
For two years, the accumulated depreciation would be
= Annual year depreciation × number of years
= $2,454,000 × 2 years
= $4,908,000
<span>If amortisation expenses are spread over 18 years rather than 6 years, amortisation expenses will be lower than they should be. This will cause an increase in net income. In addition, because less of the cost has been expensed, the remaining value of the patent will be too high, thus overstating assets.</span>
