The producer surplus from selling the additional unit of the product given the selling price and the cost of production is $9.
<h3>What is producer surplus?</h3>
Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product. The least price the producer should be willing to collect is equal to the cost of production
Producer surplus = price – cost of proeuction
$10 - $1 = $9
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Answer:
a) 28%
b) 56%
Explanation:
Data provided in the question:
Operating profit margin = 7%
Asset turnover ratio = 4
Now,
a) ROA = Profit margin × Asset turnover ratio
= 7% × 4
= 28%
b) Given:
Debt-equity ratio = 1
Interest payments = $8,200
Taxes = $8,200
EBIT = $21,000
Now,
Total assets = Net income ÷ ROA
Also,
Net income = EBIT - tax - interest
= $21,000 - $8,200 - $8,200
= $4,600
Thus,
Total assets = $4,600 ÷ 28%
= $16428.57
also,
Total assets = Debt + Equity
or
Total assets = Equity × (
)
or
$16428.57 = Equity × ( 1 + 1 )
or
=> Equity = $8214.28
Therefore,
ROE = Net income ÷ Equity
= $4,600 ÷ $8214.28
= 56%
Answer:
Non negotiable Instruments
Explanation:
Non negotiable instruments are documents that guarantees(without changes) the payments of a specific amount of money, whose payer is usually named on the document. Non negotiable instruments may not be transferred from the holder or named party to another.
The non negotiable instrument usrd in this case between sandra and Joshua is a promissory note that states the terms and details of the repay or payback. Normally, a promissory note falls under the negotiable instrument, but because it contains a reference to another document, it then becomes a non negotiable instruments.
A differenciation strategy that is aimed at increasing perceived value of goods and services by the customer usually fares best in a more flexible structure and a culture of innovation.
<h3>What is differenciation strategy?</h3>
Differentiation strategy involves designing a new product or doing something new which is much different from what the competitors do.
The uniqueness of the product could be in the branding and packaging which will tend to attract more customers.
Therefore, differenciation strategy that is aimed at increasing perceived value of goods and services by the customer usually fares best in a more flexible structure and a culture of innovation.
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