Answer: cost advantage
Explanation: In simple words, cost advantage refers to the advantage earned by the company due to their ability to produce a product at lower cost than others.
In the given case, Carpo inc,. is also the owner of steel and leather companies thus they can make watches at a lower cost as they do not have to bear to profit margin that the external supplier will be getting from them.
Hence from the above we can conclude that the correct option is D.
Answer:
Part a
Assets = Increase $3,600
Liabilities = Increase $3,600
Equity = No effect
Part b
Assets = Increase $12,300
Liabilities = No effect
Equity = Increase $12,300
Part c
Assets = Decrease $2,700
Liabilities = Decrease $2,700
Equity = No effect
Part d
Assets = Decrease (with decrease)
Liabilities = No effect
Equity = Decrease (with decrease)
Explanation:
Effects of the events on the financial statements are considered for the impart of transaction on the Assets, Liabilities and Equity as above.
Answer:
D) the U.S. inflation rate as measured by the CPI was higher than that measured by the GDP deflator, and the difference was explained by rapidly rising oil prices
Explanation:
During the 1970s there was a very strong correlation between oil prices and the CPI. Oil is essential to our economy, since it is used in so many different ways, e.g. fuel, plastics, heating, etc. The oil prices increased from $15.85 per barrel on April 5, 1979 to $39.50 per barrel on March 3, 1980. That is a huge increase (149%) for only one year.
The CPI more than doubled during the 1970s, increasing from 41.20 in 1972 to 86.30 in 1980 (109% increase). It had previously taken 24 years for the CPI to double before that decade. That is a huge increase in inflation even if you compare it to more modern day inflation. The CPI for 2018 was 251, so in the last 38 years it increased by 190% and inflation has been an issue several times in the last decades.
With sales of 9,000 units, contribution margin per unit of $32 and fixed costs total of $120,000, Lance's profit is $168,000.
<h3><u>
What is contribution margin?</u></h3>
- A gross or per-unit basis might be used to express the contribution margin.
- It indicates the additional revenue made for each product or unit sold after the variable element of the business's costs have been subtracted.
- The selling price per unit less the variable cost per unit is the contribution margin.
- The metric, also known as dollar contribution per unit, shows how a specific product affects the company's overall earnings.
Contribution margin offers a means of demonstrating the potential for profit of a specific product being offered by a business and displays the percentage of sales that goes toward paying the business' fixed costs. Profit is the amount that remains after fixed expenses have been paid.
Number of units sold = 9,000.
Contribution margin per unit = $32.
Expenses = $32 × 9000 = $2,88,000.
Profit = $2,88,000 - $120,000 = $1,68,000.
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Answer:
The correct answer is P3, Q3.
Explanation:
Once the market has reached its equilibrium, one may ask: what happens if there is an increase in demand? First, this would shift the demand to D ’, raising prices because the offer (at least for now) is already determined. This price increase allows the generation of profits, in point 1. However, it forces the offer to the right (S ’), reaching a balance in E2, where our company produces the same initial amount.
