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3 years ago

An example of a uncontrollable risk is?

2 answers:

5 0

A uncontrollable risk would be like a risk for a disease. Some people have parents who have a disease such as diabetes and it was passed off to their offspring which is a example of a uncontrollable risk. So in this case it wouldn't be option B because you can choose another place for you're business, wouldn't be option C because that wouldn't count much of a risk because you can loose money or you can gain money. It also wouldn't be option A because it's the change of laws that can or will affect a business. So the best answer to this question is option D "Entering into a franchise agreement."

Hope this helps!

Brilliant_brown [7]3 years ago

4 0

D ) Entering into a franchise agreement

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A company produces and sells a consumer product and is able to control the demand for the product by varying the selling price.

Yuki888 [10]

A company produces and sells a consumer product and is able to control the demand for the product by varying the selling price. The approximate relationship between price and demand is 50 units.

p = 38 + (2,700 / D) - (5,000 / D2)

Marginal (variable) cost (MC) = 40

(a) Profit is maximized by equality of Marginal revenue (MR) and MC.

Total revenue (TR) = p x D = 38D + 2,700 - (5,000 / D)

MR = dTR / dD = 38 + (5,000 / D2)

Equating MR with MC,

38 + (5,000 / D2) = 40

5,000 / D2 = 2

D2 = 2,500

Taking positive square root on each side,

D = 50

(b) When D = 50, from demand function we get

p = 38 + (2,700 / 50) - (5,000 / 2,500) = 38 + 54 - 2 = $90 (Profit-maximizing price)

Profit (\pi) ($) = Total Revenue - Total Costs = TR - (Fixed cost + Total variable cost) = (p x D) - (1,000 + 40D)

= 38D + 2,700 - (5,000 / D) - 1,000 - 40D

= 1,700 - 2D - (5,000 / D)

Profit is maximized when d\pi/dD = 0 and d2\pi/dD2 < 0.

First order condition: d\pi/dD = - 2 + (5,000 / D2)

Second order condition: d2\pi/dD2 = d/dD(d\pi/dD) = - 2 x (5,000 / D3) = - 10,000 / D3

Since D > 0, (- 10,000 / D3) < 0, which proves that profit is maximized when company produces = 50 units.

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8 0

2 years ago

Rex loves to work with his hands and is very good at making small figurines. Three years ago, Rex opened Bronze Age Miniatures (

VLD [36.1K]

Solution:

a. $14,900 AR is $6,250

AP = 14,900 - 6250 = $8650

∴ $8650 * 25% = 2162.5

( 25% = Positive adjustment that is added for 4 years is 25% for an year)

b. $54,800

Sale to the HRU

c. With the help of deferral method for accrual , the amount obtain is follows:

2 mos. $21 for unit x 600 units

= $25,200

d. $17,496

Sales for Sci-fi convention

e. Will only deduct money i.e. Considered as noncollectable or else expense for schedule c

= $2100

For the accrual method given income at the time of sale

= $233100

f. Costs of goods which are sold

= $159840

g. As $610 airfare in addition with + $165 convention fee also + $222 for lodging +$68 for cab fee+ $164 for meals

= $1229

h. As the earlier payment qualifies comes under the 12-month rule and which is payment liability thus it meets the economic performance test when it pays the insurance company in august

= $5040

i. For depreciation $8450

j. Economic performance for rent expense happens for the rental period

Due to no expenditure has happened , the 12 month rule is inapplicable

Rex may only deduct rent for 11 months it was renting the property ( 11 months * $1710 )

= $18810

K. As the expended immediately = $41,250 ; $41,250 / 180 months = 229

229 * 12 = 2750 other expense for schedule c

L. As $7900 is un-deduct able due to liability which is not constant

Economic preference for the $4200 occurs as AWU provides services

Also BAM may only cut the portion of this extra credit that relates to

December ( 4200 / 12 ) = $350

M. As tax payment liabilities are economic performance and the deduction occurs BAM pay taxes

= $5100

6 0

3 years ago

What's the difference between life insurance and business insurance

Pavlova-9 [17]

Answer:

response

Explanation:

Health insurance protects you and your health. pays hospitals and whatnot. Business insurance protects your business and assets under it.

8 0

3 years ago

Your regular price is $30/unit, unit variable cost is $20/unit and fixed costs are $3,000 per month. Because of the recession, y

Jet001 [13]

Answer:

Answer is in table which is attached in the attachment. Please refer to the attachment.

Explanation:

<em>Calculations:</em>

Status quo: Revenue 30* 200= 6000, VC 30*20= 4000, CM 6000-4000= 2000, 2000-3000= -1000 (Contribution Margin – fixed cost = Profit/Loss)

(b) Since the loss is less in Advertising even after $300 cost of advertisement, so we would choose the option 3 for advertising.

(c). In order to survive in the period of recession, a business needs cash and reducing operation expenses can do it better. This business is in loss from last three months so it might be useful to shut down the business for some period.

8 0

3 years ago

Use the following data to determine the total amount of working capital.

ValentinkaMS [17]

Answer:

Sheffield Corp.

The amount of working capital

= Current Assets minus Current Liabilities

= $596,300 - $229,000

= $367,300

Explanation:

a) Data and Calculations:

Cash $200,000

Accounts receivable 154,000

Inventory 152,000

Prepaid insurance 90,300

Total current assets $596,300

Stock investments (long-term) 266,000

Land 299,000

Buildings $305,000

Less: Accumulated

depreciation (55000) 250,000

Goodwill 216,000 $1,031,000

Total assets $1,627,300

Accounts payable $202,000

Salaries and wages payable <u>27,000 </u>

Current Liabilities $229,000

Mortgage payable 236,000

Total liabilities $465,000

Common stock $420,300

Retained earnings 742,000

Total stockholders' equity $1,162,300

Total liabilities and stockholders' equity $1,627,300

The difference between Sheffield Corporation's current assets and the current liabilities is known as the working capital. It is the excess between these two parameters.

4 0

3 years ago