Stuck on this one is financial literacy please help

To increase the value captured, the firm should identify activities that raise costs more than the activities increase Willingne

vekshin1

Answer:

True

Explanation:

Willingness to pay (WTP) is the maximum amount an individual is willing to hand over or pay to procure a unit of a product or service. Willingness to pay a vital in finding the best possible price a product should be sold for and help to reach a compound for the price between both the seller and buyer.

An increase in activity costs that exceed amounts that customers are willing and able to pay for a commodity, product, goods or services should warrant the need for the reduction in price of such product.

A value-added activity is any action taken that increases the benefit of a good or service to a customer, it is the value that a product or services have to customers at any given period in the production and supply cycle and this increases customers Willingness to Pay for the product.

Businesses organizations can greatly increase the profit that they make by taking notice of such activities that increases the value of the product or services they render or offers, and those that do not add or have good valuation from the consumer, and then having to do away and discontinuing the rendering of production of products or services that are non valueable to the consumer.

3 0

3 years ago

Read 2 more answers

Suppose the minimum possible price of constructing homes is $50 per square foot. As a result of a sharp drop in the demand for h

Alex_Xolod [135]

Answer:

some firms will exit the industry

Explanation:

if the minimum possible price of constructing homes = $50 per square foot, it means that the marginal cost of building a square foot is $50. If the selling price is less than the marginal cost, then some firms will inevitably have to exit the industry. No firm can remain at an industry when its marginal costs are higher than its marginal revenue.

As supply lowers, the equilibrium price should increase, and some firms might return to the industry.

7 0

3 years ago

Jiffy Park Corp. has annual sales of $50,736,000, an average inventory level of S15,010,000, and average accounts receivable of

FromTheMoon [43]

Answer:

Jiffy Park Corp.

Cash Conversion Cycle:

a. Prior to proposed changes:

CCC = 169 days

b. After implementing changes:

CCC = 129 days

c. The change in CCC is 40 days

d. It is significant. It is about 24% reduction in the CCC. It is equal to the days that payable are outstanding under the proposed plan.

Explanation:

a) Data and Calculations:

Current annual sales = $50,736,000

Average inventory level = $15,010,000

Average accounts receivable = $10,010,000

Cost of goods sold = 85% of sale s= $43,125,600

Normal Days Payable Outstanding = 30 days

New Plan:

Planned Days Payable Outstanding = 40 days

Annual sales = $50,736,000

Average inventory level = $13,060,000 ($15,010,000 - $1,950,000)

Average accounts receivable = $8,060,000 ($10,010,000 - $1,950,000)

Cash Conversion Cycle:

a. Prior to proposed changes:

Days Inventory Outstanding = $15,010,000/$43,125,600 * 365 = 127 days

Days Receivable OUtstanding = $10,010,000/$50,736,000 * 365 = 72 days

Days Payable Outstanding = 30 days

CCC = 169 (127 + 72 - 30) days

b. After implementing changes:

Days Inventory Outstanding = $13,060,000/$43,125,600 * 365 = 111 days

Days Receivable OUtstanding = $8,060,000/$50,736,000 * 365 = 58 days

Days Payable Outstanding = 30 days

CCC = 129 (111 + 58 - 40) days

c. The change in CCC is 40 days (169 - 129)

d. It is significant. It is about 24% reduction in the CCC. It is equal to the days that payable are outstanding under the proposed plan.

6 0

3 years ago

What economic reason might explain a steep jump in the price of a good or service?

s2008m [1.1K]

Answer:

Inflation.

Explanation:

Inflation is a quantitative proportion of the rate at which the normal cost level of a crate of chosen merchandise and enterprises in an economy increments over some time-frame. It is the ascent in the general degree of costs where a unit of money successfully purchases short of what it did in earlier periods. Regularly communicated as a rate, inflation in this way shows a decline in the buying intensity of a country's money. Inflation can be diverged from emptying, which happens when costs rather decrease. As costs rise, a solitary unit of money loses an incentive as it purchases less merchandise and enterprises. This loss of buying power impacts the general average cost for basic items for the normal open which at last prompts a deceleration in financial development. The accord see among financial specialists is that continued inflation happens when a country's cash supply development outpaces monetary development.

7 0

3 years ago

Which of the following is an example of competitive parity? A firm provides wall clocks that its consumers value more than other

lidiya [134]

Answer:

A firm produces a similar number of wall clocks at a similar cost as its competitors.

Explanation:

Competitive parity, as the name implies, is a situation in which a firm has a similar good or service to that of its competitors. These similarities can manifest in quality, cost, or both.

Im this case, if a firm produces a similar quantity of wall clocks, and sells them at a similar price, then, this firm has a competitive parity with its competitors.

6 0

3 years ago