The meaning of being saturated or reaching the point of saturation in the business terms is the time in which a market does not generate any more demand for a certain market. This may be due to increase competition, decrease need or the product became unusable. For sellers, saturation means two things, first is that this is the chance for you to give your business a makeover. You can level up your products or service or try a new strategy for your business. The endpoint is that you need to diversify so that the customers will not get tired of the same product of service all over again. If you observed that with all the things you possibly did to keep the product or service growing, you haven't seen any change the market demand then the second thing you may want to do is to stop your business because it will only be a waste of time, research and money.
These is a major advantage of a market economy is it can change direction rapidly when needed as markets change. Thus second option is correct.
<h3>What is Market Economy?</h3>
Market Economy refers to the economy in which the prices of the goods and services are determined by the two market forces that are supply and demand.
There is a less control of the government in the market economy and therefore all the decisions are taken by the private individuals. Thus option 1st is incorrect.
The Prices of the goods and services are determined by the supply and demand forces and the prices are kept as per the affordability of the customers. Thus option 3rd is also incorrect.
Therefore the correct option is 2nd one as the market changes the price of the good and services are also effected and get changed.
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Answer:
The cost of goods sold and the ending inventory, respectively, were: $660,000 and $490,000
Explanation:
Saratoga Dress Co. had gross profit rate of 45%
Gross profit rate = (Gross Profit/ Sales)x 100%
Gross Profit = (Gross profit rate x Sales)/100% = (45% x $1,200,000)/100% = $540,000
Cost of Goods Sold = Sales - Gross Profit = $1,200,000 - $540,000 = $660,000
The ending inventory = the beginning inventory + purchasing merchandise - Cost of Goods Sold = $300,000 + $850,000 - $660,000 = $490,000
Information related is the answer
Answer:
$702,400
Explanation:
Data provided in the question:
Cost of the machine acquired = $1,110,000
Useful life of the machine = 5 years
Residual value = $91,000
Method of depreciation is straight line
Now,
Annual depreciation = 
or
⇒ Annual depreciation = 
or
⇒ Annual depreciation = $203,800
Book value = Cost of the machine - (Total depreciation in the given period)
now,
Duration of period from January 1, 2018 to end of 2019 = 2 years
Therefore,
The total depreciation = 2 × Annual depreciation
= 2 × $203,800
= $407,600
Hence,
Book value at the end of 2019 = $1,110,000 - $407,600
or
Book value at the end of 2019 = $702,400
