Answer:
b. $7,972
Explanation:
The computation of the amount of the gross profit earned is shown below:
But before that we have to do the following calculations
Net sales = $35,000 - $3,600 = $31,400
Merchandise cost = $24,500 - $1,700 = $22,800
Discount allowed= $31400 × 2% = $628
Now
Gross profit earned is
= $31,400 - $22,800 - $628
= $7,972
(the flexibility basically)
definition-able to resume its normal shape spontaneously after contraction, dilatation, or distortion.
Answer:
The survival principle states that
A. the only firms that survive are those that maximize profits.
Explanation:
Profit maximization is important for a firm to survive. Without profit maximization, firms fail. Profits impact share price, business growth, and short-term and long-term survival. Profits reduce debt burden, and increase capital investments and acquisitions. Without profits, a firm cannot pay dividends or repurchase shares. Profit is at the center of a firm's survival. Even Baumol's theory of sales maximization states that it is only when an acceptable level of profit has been achieved that a firm can shift its focus away from profits to revenue maximization. This emphasizes the importance of profit maximization. Profit maximization also contributes to the maximization of cash flows.
Answer:
False
Explanation:
There are several methods that businesses use to determine the price of goods and services. The most common one involves first calculating the cost of production or the cost of goods sold. The desired markup is added to the cost. Other methods include the break-even analysis, target prices, and going by the market rate.
In all these methods, the price is determined selling starts. It means the price is set before selling starts. Therefore, income cannot be generated before a price is determined.
Customer service is giving assistance to customers on how to best use the product, trouble-shooting any issues, and ensuring they had a great buying experience. Customer care means how well customers are taken care of while they interact with the brand.
