Answer:
A) Contacting the farming cooperative to negotiate the price of corn for your upcoming contract.
Explanation:
You need to cut upstream costs, which means costs related to the supply of materials, parts and components, and the processing of the final goods.
Upstream costs include the price of raw materials and in this case, the raw materials are bought from a farming cooperative. By negotiating a lower price for corn with them, you can actually reduce your upstream costs.
Two relevance of entrepreneurship to Students include:
- Teaches them life skills.
- Gives them options after leaving school
<h3>What is the relevance of entrepreneurship to students?</h3>
Students should be taught entrepreneurship skills because it can teach them some important skills in life such as problem-solving and creative thinking.
It would also give them an extra avenue to earn an income while still in school and when they leave school.
Find out more on the benefits of entrepreneurship at brainly.com/question/18294953
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Answer:
Return on equity(r) = 0.16
Plowback ratio(b) = 50 = 0.5
Earnings per share(EPS) = $2
D1 = 50% x $2 = $1
Cost of equity(Ke) = 0.12
Growth rate(g) = b x r
= 0.5 x 0.16
= 0.08 = 8%
Current market price(Po) = D1/Po + g
= $1/0.12 - 0.08
= $25
Market price in 3 years = Po(1+g)n
= $25(1+0.08)3
= $25(1.08)3
= $31.49
Explanation:
In this case, we need to calculate growth rate by multiplying the plowback ratio by return on equity. Then, we will calculate the current market price as shown above. Thereafter, we will subject the current market price to a 3-year growth rate to calculate the market price in 3 year's time
Answer:
Economic profit for the year is
Explanation:
The accounting profit will be Revenue - expenses (150,000-35,000) $ 115,000. However this problem requires us to calculate economic profit. Economic profit is different from accounting profit. While calculating it opportunity costs also become part of expenses as implicit costs. Detail calculation is given below.
Economic profit = 150,000 -35,000-20,000 = $ 95,000
Answer:
Option (b) is correct.
Explanation:
Given that,
Initial price of good A = $50
Initial quantity demanded of good A = 500 units
New price of good A = $70
New quantity demanded of good A = 400 units
Average quantity demanded:
= (New + Initial) ÷ 2
= (400 + 500) ÷ 2
= 450 units
Change in quantity demanded:
= New - Initial
= 400 units - 500 units
= -100 units
Average price level:
= (New + Initial) ÷ 2
= (70 + 50) ÷ 2
= $60
Change in price level:
= New - Initial
= $70 - $50
= $20
Therefore, the price elasticity of demand for good A is as follows:
= 
= 
= 
= -0.67
Total revenue before price increase:
= quantity demanded of good A × price of good A
= 500 units × $50
= $25,000
Total revenue after price increase:
= quantity demanded of good A × price of good A
= 400 units × $70
= $28,000
Therefore, there is an increase in total revenue with increase in the price level.
