Answer:
True
Explanation:
According to Thomas Duening and Robert Hisrich book "Technology Entrepreneurship: Taking Innovation to the Marketplace", the direct purchase has some problems: long-term capital gain to the seller and double taxation. The bootstrap purchase eliminates those problems: the acquiring company can acquire a small amount of the firm, 20 or 30% in cash and the remaining with a long-term note.
Answer:
See
Explanation:
1. Break even point in units
= Fixed cost / Selling price per unit - Variable cost per unit
Given that
Fixed cost = $600,000
Selling price per unit = $375
Variable cost per unit = $300
Break even point in units = $600,000 / ($375 - $300)
= $600,000 / $75
= 8,000 units
2. Break even in sales
= Fixed cost / Selling price unit - Variable cost per unit × Selling price per unit.
=[ $600,000 / ($375 - $300) ] × $375
= 8,000 × $375
= $3,000,000
Answer:
The correct answer is letter "A": Neither Italy or New Zealand.
Explanation:
Comparative advantage is the ability of an individual or organization to manufacture its products at a lower opportunity cost than its competitors. The scenario does not imply the individual has an absolute advantage. It actually means it sacrifices less to achieve that goal.
Thus, <em>Portugal has a lower opportunity cost than Italy in producing a bottle of wine. Portugal's opportunity cost is 1/2 while Italy's opportunity cost is 2. Neither Italy or New Zealand (or any other country not mentioned in the example) has a comparative advantage in producing wine</em>.
Answer:
$4,213
Explanation:
Product Group Units Cost/Unit Market/Unit Total Value
A 1 600 $1.00 $0.80 $480
B 1 250 $1.50 $1.55 $375
C 2 150 $5.00 $5.25 $750
D 2 100 $6.50 $6.40 $640
E 3 80 $25.00 $24.60 $1,968
total $4,213
when you are using the lower of cost or net realizable value to determine the value of your inventory, you should calculate the inventory's value using the lowest cost between purchase cost and market value.
