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3 years ago

Is gross profit or net profit more important to consider when you're deciding how

Business

1 answer:

Lelu [443]3 years ago

3 0

Answer:

In this context, the most suitable answer is Gross profit.

This is because gross profit calculates the revenue from the basic and main business operation and shows if the company's main business is able to make money.

When you look at the net profit, it takes into account various costs like tax, finance costs, administration, losses, etc. that might reflect costs that are difficult to be controlled by the company.

this however, does not mean u should not pay attention to the net profit too.

Explanation:

You might be interested in

1- According to economist Milton Friedman which of the following is the main purpose of a business?

Stells [14]

Answer:

A mean purpose of business is to get profit

Explanation:

because in a business there is amount of money invested

8 0

2 years ago

Ben says that "an increase in the tax on beer will raise its price." Holly argues that "taxes should be increased on beer becaus

Grace [21]

Answer:

B. Holly's statement is normative, but Ben's is positive.

Explanation:

Positive statements are based on objective deduction of what is, or was. It is based on facts. Ben's comment "an increase in the tax on beer will raise its price", is an example of positive statement.

Normative statements are subjective and based on individual values and judgement. In her statement Holly appears to be biased against drinking much. She says "taxes should be increased on beer because college students drink too much." Is a normative statement.

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3 years ago

Academic book publishers hire editors, designers, and production and marketing managers who help prepare books for publication.

Montano1993 [528]

Answer:

The correct answer is option D.

Explanation:

Academic book publishers hire editors, designers, and production and marketing managers who help prepare books for publication.

These employees work on several books simultaneously so a change in quantity demanded of books published in a year.

Since the number of people employed is fixed and does not change with the quantity of output. The cost incurred on these workers will be fixed cost. So the salaries and benefits of people in these people will be included in fixed costs and total costs. But since it does not change with change in the output it will not be included in variable costs.

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3 years ago

S'Round Sound, Inc. reported the following results from the sale of 24,000 units of IT-54:

Alisiya [41]

Answer:

The correct answer is D.

Explanation:

Giving the following information:

Total Variable manufacturing costs 288,000

Unitary variable costs= 288,000/24,000= $12

Rhythm Company has offered to purchase 3,000 IT-54s at $16 each. No variable selling costs will be incurred.

Because it is a special offer and there is available capacity, we will not have into account the fixed costs.

Effect on income= 3,000*(16-12)= $12,000 increase

3 0

3 years ago

Under the Equal Pay Act:

Kitty [74]

Answer: Under the Equal Pay Act: <u>"d. Wage differentials based on a seniority system are allowed.".</u>

Explanation: The Equal Pay Act states that no employer should discriminate based on sex when paying wages for equal work in jobs But that wage differences can be established according to an seniority system (is allowed).

3 0

3 years ago