Answer:
$460,000
Explanation:
Data provided in the question
Number of shares sold = 100,000 shares
Explicit fees = $60,000
Offering price = $40
And, the increased share price = $44
Now the total cost of the equity issue is
= Number of shares sold × offering price per share + underwriter explicit fees
= 100,000 shares × $40 + $60,000
= $400,000 + $60,000
= $460,000
Answer:
c. Your fixed lot size was equal to the EOQ.
Explanation:
At economic order quantity, the Holding cost is equal Ordering cost
. Since Holding cost is higher than the Ordering cost, less number of orders are placed and more inventory is being stored.
Answer: False
Explanation:
A perfectly competitive market has the following characteristics,
a. Free entry and Exit
b. Sellers sell identical goods and services
c. Sellers and buyers are price takers
d. Many buyers and sellers
e. Perfect information
Gas and Electricity do not exhibit the two primary characteristics of perfectly competitive markets. This market has characteristics of a monopoly. Entry is restricted and the there are not many sellers.
Is called collusion
It's actually price collusion to be precise ( not to be mistaken for the crime collusion)
Often time, to attract customers, sellers will offer a lower price than their competitor. Though it may attract more customer, it will lower their profit.
In price collusion, all sellers is guaranteed to have same product price and profit margin, creating a perfect competition market for that product
Answer:
1 and 2
Explanation:
Gross profit is earning a business makes from its normal operation before considering operating expenses. It is calculated by subtracting direct costs from the revenues. Direct costs are the expenses incurred in acquiring the goods and services sold to customers. Revenue from normal business operations is the income from the sale of goods and services, and other business-related activities.
For Franco and Giada, they should not include items 1 and 2 in gross profits.
- Item 1 is money inherited. It is income but not from the business operations.
- Item 2 is a loan a bank loan. Loans are not considered in the income statement but are featured in the balance sheet.
Items 3 and 4 will be featured in the gross profit calculation. Item 3 is an income from a sale, while item 4 is a miscellaneous income from a loan issued out.
