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3 years ago

Why is the location of a business important to the success of that business?

1 answer:

5 0

Choosing a location for a new business is one of the most important decisions entrepreneurs make during the planning phase of launching ventures. The location of a business can affect many aspects of how it operates, such as total sales and how costly it is to run.

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A monopolistic competitive firm is currently charging a price of $10 and producing 12,000 units/month. It faces monthly fixed co

gizmo_the_mogwai [7]

Answer:

either the selling price decreases or the total output decreases

Explanation:

The firm's income statement:

total sales revenue = $120,000

minus total variable costs = ($72,000)

minus total fixed costs = ($15,000)

net profit = $33,000

The long run equilibrium for a monopolistically competitive firm occurs when the firm is making no economic profit since it is charging a price = average total cost.

In this case the average total cost per unit = $6 per unit + ($15,000 / 12,000 units) = $7.25 per unit

Since the firm is currently charging a higher selling price than average total cost ($10 > $7.25), one or two things might happen in the long run:

selling price will decrease
output will decrease

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3 years ago

Couurtney bought a shirt for $24. with a coupon for 25% off. what was the original price of the shirt before the discount

kiruha [24]

Let the original price be x.

then,

x- 25% of x= 24
x- 25x/100 = 24
x- x/4=24
3x/4=24

3x= 96

x= 32

in short...the original price= 32 dollars

3 0

3 years ago

Kunkel Company makes two products and uses a conventional costing system. A single plantwide predetermined overhead rate is comp

Ilia_Sergeevich [38]

Answer:

Results are below.

Explanation:

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Total number of direct labor hours= (1,000*2) + (2,000*7)= 16,000

Predetermined manufacturing overhead rate= 1,200,000 / 16,000

Predetermined manufacturing overhead rate= $75 per direct labor hour

Now, we allocate overhead to each unit and calculate the unitary cost:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Mercon:

Allocated MOH= 75*2= $150

Unitary cost= 150 + 8 + 10= $168

Wurcon:

Allocated MOH= 75*7= $525

Unitary cost= 525 + 6 + 11= $542

Finally, using activity-based costing:

Mercon Wurcon Total

Engineering design time (in hours) 1,000 1,000 2,000

Direct labor-hours 2,000 14,000 16,000

Engineering= 600,000 / 2,000= $300 per design hour

Direct labor= 600,000 / 16,000= $37.5 per direct labor hour

Mercon:

Allocated MOH= 37.5*2 + 300*1= $375

Unitary cost= 375 + 8 + 10= $393

Wurcon:

Allocated MOH= 37.5*7 + 300*0.5= $412.5

Unitary cost= 412.5 + 6 + 11= $429.5

3 0

3 years ago

Recession, inflation, and high interest rates are economic events that are best characterized as being a. systematic risk factor

Shalnov [3]

Answer:

The correct answer is letter "B": among the factors that are responsible for market risk.

Explanation:

Market risk is the threat of an investment value falling due to factors that affect all market-wide investments. Investors always take on a certain level of risk. There is always the risk that their investments do not achieve expected returns. The risk falls into two categories: Systematic risk and Unsystematic Risk.

Interest rates fluctuations, recession, and inflation are considered market risks.

3 0

3 years ago

The partnership of Larson, Norris, Spencer, and Harrison has decided to terminate operations and liquidate all business property

Volgvan

Answer:

LARSON, NORRIS, SPENCER AND HARRISON

PREDISTRIBUTION PLAN FOR LIQUIDATING PARTNERSHIP

ASSET

Cash $28,250

liquidating expense (8,000) 20,250

Account receivable 44,000

inventory 39,000

land and building 23,000

Equipment 104,000

Total Asset 230,250

Liabilities (47,000)

Net asset 183,250

Asset to be distributed as follows:

Larson(15,000 - 1600) 13,400

Norris(60,000 -2400) 57,600

Spencer(75,000 - 1600) 73,400

Harrison(41,250-2400) 38,850 ( 183,250)

0

Loss

share of liquidation expenses

Larson = 20%*8000 = 1600

Norris = 30%*8000 = 2400

Spencer = 20%*8000= 1600

Harrison = 30%*8000 = 2400

Explanation:

4 0

3 years ago