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ira [324]
3 years ago
8

prockets Inc. just eliminated a product that had yearly sales of $120,000, yearly variable expenses of $48,000, and yearly fixed

expenses of $92,000. By dropping the product, Sprockets increased its company-wide yearly net income by $10,800. These data indicate that when Sprockets discontinued the product, it was also able to eliminate _____ of the fixed costs associated with that product.
Business
1 answer:
Serhud [2]3 years ago
3 0

Answer:

Savings in fixed costs= 30,800

Explanation:

Giving the following information:

Prockets Inc. just eliminated a product that had yearly sales of $120,000, yearly variable expenses of $48,000, and yearly fixed expenses of $92,000. By dropping the product, Sprockets increased its company-wide yearly net income by $10,800.

Loss= 120,000 - 48,000 - 92,000= -20,000

By dropping the product:

Savings in fixed costs= 20,000 + 10,800= 30,800

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Explain what happens when markets do not have enough competition.
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Answer:

The price will be higher and output lower in absence of competition.

Explanation:

When the market does not have enough competition, it provides a certain degree of market power to the existing producers. They are able to regulate prices and output.  

It is likely that the suppliers will provide a fewer quantities of goods at a higher price, in order to maximize their profits. The socially optimal level of output will not be produced in the market.  

The resources will not be efficiently allocated and deadweight loss will exist.

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3 years ago
True or False: The Law of One Price states that in competitive markets free of transportation costs and barriers to trade (such
sukhopar [10]

Answer:

It is False

The law of one price (LOOP) states that in the absence of trade frictions (such as transport costs and tariffs), and under conditions of free competition and price flexibility (where no individual sellers or buyers have power to manipulate prices and prices can freely adjust), identical goods sold in different.

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3 years ago
Read 2 more answers
Compute the amount of raw materials used during November if $31,500 of raw materials were purchased during the month and if the
mezya [45]

Answer:

Raw materials used during November was $34,800.

Explanation:

The formula for Raw Materials Used is given below:

Opening Raw Materials + Purchases - Closing Raw Materials = Raw Materials Used

Putting Values:

⇒ Raw Materials Used = 7,600 + 31,500 - 4,300 = $34,800.

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7 0
3 years ago
As Starbucks expands in Chile, the company wants store décor and paper goods used to be controlled by
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The paper companies are the ones responsible. Either in chile or overseas in the uS
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2 years ago
Accounting has its own vocabulary and basic relationships. Match the accounting terms with the corresponding definition or meani
balandron [24]

Answer and Explanation:

The matching of the accounting term with the definition is shown below:

1. Debit - it comes in the left side i.e. (i)

2. Expense: It decreases the stockholder equity also it contains the debit balance i.e. (d)

3. Net income: It is a statement that shows the expenses and revenue related transactions i.e. (g)

4. Ledger: It is the T-account in which the journal entries are posted i.e. (e)

5. Posting: The data is copied from journal to ledger we called as posting i.e. (f)

6. Normal balance: It is the side of an account in which the account increment is recorded i.e. (b)

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8. Journal: In this the transactions are recorded i.e. (c)

9. Receivable: This is an asset and it has always a debit balance i.e. (a)

10. Owner equity: It is amount i.e. to be invested in the business also shows a difference between the total asset and total liabilities i.e. (j)

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3 years ago
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