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3 years ago

Bed & Bath, a retailing company, has two departments: Hardware and Linens.

Business

1 answer:

LUCKY_DIMON [66]3 years ago

3 0

Answer:

Net Operating Income will decrease by $503,080.

Explanation:

Sales of Hardware after 12% decrease will be $3,100,000 * 88% (100 - 12) = $2,728,000

Variable Expenses of Hardware after 12% decrease 891,000 * 88% (100 - 12) = $784,080

Net Operating Income of Hardware after 12% decrease = $623,920

The sunk cost for Linens fixed cost will be deducted to find the total of net operating income

$623,920 - $375,000 = $248,920

$248,920 is the net operating income after dropping Linens

The increase or decrease is calculated by finding the difference between current and old total net operating income

$248,920 - $752,000 = $503,080

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Old Economy Traders opened an account to short-sell 1,550 shares of Internet Dreams at $74 per share. The initial margin require

svetlana [45]

Answer:

A.37%

B.No because the margin is above the requirement at 37%.

C.-118%

Explanation:

Old Economy Traders

1,550 shares*$74 per share = 114,700

margin requirement is 52% so equity =59,644

1 year later price increase to 81

$1550 shares*$81 per share = 125,550

Dividend = $4*1550 = 6,200

Margin = 114,700/131750 = 37%

No because the margin is above the requirement at 37%.

Price of 1550 stock year 1 at 81$/share = 125,550

114,700 – 125,500 = -10800

Rate of return = (-10800 -59,644)/59,644= -118%

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3 years ago

Given the total fixed-cost curve in gray and the total variable-cost curve in color, draw the total cost curve. Three points on

saveliy_v [14]

Answer:

TFC : Horizontal Line parallel to X axis

TVC : Upward sloping inverse S shape curve from origin

TC : Upward sloping increase S shape curve, with Y axis intercept = TFC

Explanation:

Total Fixed cost [TFC] is the total production expenditure, done on fixed factors of production (Eg - on machine, building etc). It is incurred even at zero level of output, stays same (constant) irrespective of output level. So, it's curve is a constant horizontal line.

Total Variable Cost [TVC] is the total production expenditure, done on variable factors of production (Eg - on raw material). It is zero at zero level of output, directly related to level of output thereafter. It first increases at a decreasing rate, then increases at an increasing rate. So, it's curve is inverse S upward sloping curve from origin.

Total Cost [TC] is the total cost incurred on all factors of production (fixed & variable). It is sum of TVC & TFC. As TFC is constant at all levels of output, TC changes due to change in TVC. So, TC is also directly related to output level, first increases at increasing rate & then at decreasing rate. Hence, it is also a inverse S upward sloping curve. But, it also includes constant TFC. So, the curve has intercept on Y axis = TFC (it doesn't start from origin).

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3 years ago

Firm A is a new producer in the market for good X, which is characterized by linear demand and supply curves. Initially, to attr

Dafna1 [17]

Answer:

E. He is not accounting for the new consumers who will benefit from being able to consume the product.

Explanation:

With the increase in price of product, Demand equals Supply i.e., no shortage exists in the market. Thus, the equilibrium level is achieved at price of $ 10. Further, The most important advantage of increasing the price in the given question is that shortage which exists earlier no longer remains now which will benefit all the consumers including some new consumers as they will able to get the sufficient number of quantities of product for the consumption now. Financial Head of Firm is ignoring the new consumers who will benefit from able to consume the product.

Therefore, He is not accounting for the new consumers who will benefit from able to consume the product.

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3 years ago

Dairy Cream Inc. makes and sells ice cream. Dairy Cream wants to merge with EZ Freeze Inc., its main competitor and a maker of i

Readme [11.4K]

Answer:

b. products that have identical attributes, such as frozen yogurt.

Explanation:

A monopoly is formed when a firm or a group of firms have a an unfair advantage in supplying a product and faces no competition while operating.

It is important to identify the market where the monopolist exists.

In the given scenario where Dairy Cream wants to merge with EZ Freeze Inc., its main competitor and a maker of ice cream and other frozen desserts. The merger will eliminate competition and the product market is defined under ice cream and products that have identical attributes, such as frozen yogurt.

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3 years ago

Who is most likely to threaten the security of a business?

Alex73 [517]

Answer:

Explanation:

Outsiders who were once employees

Because they have the inside information. And if your up to any tricks, they'll know! And you'll basically be at their liberty.

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2 years ago