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3 years ago

Entrepreneurs are well compensated in a market economy if they provide high utility to consumers at a relatively low ______.

Business

1 answer:

AysviL [449]3 years ago

5 0

Answer: cost

Explanation: In a market economy, the price of the product or service offered are determined by the market forces of demand and supply. Govt. intervention in regulating the market forces is minimal in such markets.

Thus, if the entrepreneurs produce goods at a low cost they will price it low leading to high demand for their product. Thus, they will be compensated well if they cost their product lower than others.

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Jim's Espresso expects sales to grow by 10.3 % next year. Using the following statements and the percent of sales method, forec

stepladder [879]

Answer:

Jim's Espresso

The forecasted costs will be :___________

a. Costs = $110,168

b. Depreciation = $6,575

c. Net Income = $70,482

d. Cash = $16,600

e. Accounts receivable = $2,283

f. Inventory = $4,511

g. Property, plant, and equipment = $11,085

Explanation:

a) Data and Calculations:

Sales growth = 10.3%

Balance Sheet

Assets Percentage of sales

Current Forecast

Cash and Equivalents $15,050 0.07357 $16,600

Accounts Receivable 2070 0.01012 2,283

Inventories 4090 0.01999 4,511

Total Current Assets $21,210

Property, Plant and Equipment 10,050 0.04913 11,085

Total Assets $31,260

Liabilities and Equity:

Accounts Payable $1,580

Debt 3930

Total Liabilities $5,510

Stockholders' Equity 25750

Total Liabilities and Equity $31,260

Income Statement: Current % Forecast

Year

Sales $204,560 1 $225,630

Costs Except Depreciation (99,880) 0.48827 (110,168)

EBITDA $104,680 0.51173

Depreciation (5,960) 0.02914 (6,575)

EBIT $98,720 0.48260

Interest Expense (net) (410) 0.00200

Pretax Income $98,310 0.48059

Income Tax (34,409) 0.16821

Net Income $63,901 0.31238 $70,482

The forecasts are based on sales of the current year and the next year.

5 0

3 years ago

"A 45-year old man earns $150,000 per year and is covered by his employer's 401(k) Plan. He quits" his job and moves to a new co

DaniilM [7]

Answer:

Not to leave previous job.

Explanation:

First of all, the question is that what he will lose after leaving the job?

His earning per year is equal at both sides, still what's the opportunity cost for him?

<em>The answer is simple,</em> he may earn equal but if looked at it in a bigger picture he is losing 401k retirement plan and It is his opportunity cost. He may regret this after leaving the job.

7 0

3 years ago

Ball transforms raw materials, human resources, parts, supplies, tools, and other resources into containers using processes of f

Jlenok [28]

This process is known as operations management. Operations management serves to foster the highest possible level of efficiency within an organization. It is an important practice of business management. The way operations management is carried out in any organization is varied and it depends on the types of goods and services that are offered.

7 0

3 years ago

Braun Company has one service department and two operating (production) departments. Maintenance Department costs are allocated

11111nata11111 [884]

Answer:

$154,900

Explanation:

The computation of the total cost of operating the assembly department as follows:

= Direct expenses of assembly department + allocated amount

= $123,400 + $52,500 × 69,000 ÷ (69,000 + 46,000)

= $123,400 + $52,500 × 69,000 ÷ 115,000

= $123,400 + $31,500

= $154,900

8 0

3 years ago

Sneed Corporation issues 9,700 shares of $49 par preferred stock for cash at $66 per share. The entry to record the transaction

NARA [144]

Answer:

a.Preferred Stock for $475,300

and Paid-In Capital in Excess of Par—Preferred Stock for $164,900.

Explanation:

The par value it's a minimum price that the company assigns to the issued shares only to be used in the accounting system but it's not related to market price.

This par value will be shown as a separate value in the section of stockholders' equity, reported under the item Paid-in-Capital, the difference with the market price it's reported as Preferred Stock.

Cash $640.200 Debit

Preferred Stock $475.300 Credit

Paid-In Capital in Excess of Par—Preferred Stock $164.900 Credit

7 0

3 years ago