Answer:
$41,400
Explanation:
Calculation for Paper Clip Company Operating income
OPERATING NET INCOME for Paper Clip Company
Sales revenue 164,800
Less: Purchases of merchandise (89,900)
Utilities for the store (9,600)
Sales commission (10,100)
Rent for store (13,800)
Operating net income $41,400
Therefore the Operating net income will be $41,400
During the three-month period, the plant is not able to produce anything because it shut down. Hence, its variable cost is equal to zero, however, during this period, the fixed cost is still greater than zero because of the process that needs to be done in order to ensure that once the plant is restarted.
For the reason stated above, the most likely answer to this item is the first choice.
An import tariff would increase the price of certain foreign-made goods.
Answer:
CLV = [(GC * r) / (1 + i - r)] - AC]
Explanation:
CLV is the customer lifetime value which is the calculation of net profit during the tenure of relationship with the clients and customers.
The formula for CLV calculation is :
CLV = [(GC * r) / (1 + i - r)] - AC]
Where,
GC is annual gross contribution,
r is retention rate of customers
i is discount rate
AC is Acquisition cost
Answer:
the domestic price of sugar will increase to $125.
Explanation:
Since the world price of sugar is higher than the domestic price, domestic producers of sugar will export their products in order to earn a higher profit. That will eventually lead to an increase in the equilibrium price from $100 (former equilibrium price) to a higher price equal to the world price ($125).
