Practices that reduce competition without actual documented agreements between firms to raise price are commonly referred to as <u>restrictive practices.</u>
<h2>
How does competition affect the demand curve of a firm?</h2>
When competing firms establish prices in response to the prices set by their competitors, the demand curve that each firm faces becomes ambiguous. Increased government wheat price subsidies will not make wheat growing more lucrative.
<h2>
What has the regulator allowed firms to do to set prices?</h2>
The regulator has allowed for an adjustment for the firm's usual rate of profit, and then established the price that customers can be paid correspondingly.
<h2>What are Restrictive practices?</h2>
Restricted interventions are another term for restrictive practice. This is when someone is forced to do something they don't want to do or is prevented from doing something they want to do.
This can be accomplished by employing:
- seclusion.
- environmental constraint medication (sometimes referred to as chemical restraint).
- mechanical restraint psychological restraint.
Learn more about Restrictive Practices:
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Answer:
The DRS's EBIT will be $205,920.
Explanation:
Degree of operating leverage measures how EBIT will change with change in sales
Degree of operating leverage (DOL) = % change in EBIT / % change in sales
In our case, DOL = 3.2x
Sales forecast = $300,000
Actual sales = $313,500
% change in sales = (Actual sales - forecast )/ forecast = (313,500 - 300,000) / 300,000
= 4.5%
EBIT forecast = $180,000
Now putting everything in DOL formula
3.2 = % change in EBIT / % change in sales = % change in EBIT / 4.5
% change in EBIT = 3.2 * 4.5
= 14.4%
Actual EBIT = Forecast *(1 + % change)
= 180,000*(1 + 0.014)
= $205,920
Therefore, The DRS's EBIT will be $205,920.
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Answer:
The correct answer is letter "B": The proceeds of the bond issue entirely as debt.
Explanation:
Under the U.S. General Accepted Accounting Principles (<em>GAAP</em>) the issuance costs of bonds are ignored for reporting purposes but the amount of sales revenues is recorded as debt. The amortization of the bond can be calculated using the <em>effective interest method</em> or the <em>straight-line method</em>.
Answer:
the products than to customer needs.
