Answer: The answers are given below
Explanation:
a. What is its percentage rate of return?
From the question, we are told that the firm is earning $5.50 on every $50 invested by its founders. The percentage of return will now be:
= $5.50/$50 × 100%
= 0.11 × 100%
= 11%
b. Is the firm earning an economic profit? If so, how large?
The economic profit will be the difference that exists between the percentage of return which is 11% and the normal rate of profit which is 5%. This will be:
= 11% - 5%
= 6%
The firm is earning economic profit of 6%.
c. Will this industry see entry or exit?
There will be entry into the industry. This is because the percentage of return which is 11% is greater than the normal rate of profit which is 5%.
d. What will be the rate of return earned by firms in this industry once the industry reaches long-run equilibrium?
The rate of return earned by firms in this industry once the industry reaches long-run equilibrium will be 5% which is the normal rate of profit in the economy.
Answer:
Value analysis
Explanation:
The value analysis is the evaluation made by a company during the creation of a product to make sure that the specifications of it are adequate and that the cost is not higher than needed so that it can perform its functions properly at the right price. According to this, the answer is that the review of successful products that takes place during the production process is value analysis.
Answer:
A. tuition revenues of $4,000 and expenditures of $4,000.
Explanation:
If the student is not employed as a graduate assistant required to assist faculty members with research and other activities, we will have one:
a. The student will have to pay $4,000 tuition. This is a revenue to the university.
b. The private university will employ a research assistant and pay him $4,000. This an expenditure to the university.
Therefore, this transactions have to be required as highlighted in a. and b. above to track the actual revenue and expenditure implication of the waiver despite cash does not exchange hands.
Answer:
The Cost of Goods Sold or COGS for the period was $85000
Explanation:
The cost of goods sold is the value or cost of inventory that has been sold off during the period. The Cost of Goods Sold of COGS can be calculated as follows,
COGS = Opening Inventory + Purchases - Closing Inventory
COGS = 50000 + 75000 - 40000
COGS = $85000
So, the Cost of Goods Sold or COGS for the period was $85000
