Answer:
The correct answer is The price of the alternative was too high.
Explanation:
The market price is the price at which a good or service can be purchased in a free market. It is an economic concept of application both in historical aspects of the discipline and in its concrete use and in daily life.
The concept has given rise to both technical and theoretical discussions in the development of economic sciences. These discussions range from the definition of what a market is to what is understood by price, difficulties that acquire a particular importance in the microeconomics, an area in which one of the most important functions of an economist is the determination of prices that maximize profit of a company. However, the problem also extends to the macroeconomic sphere, in which price calculations play a central role in determining the hypothetical economic balance.
Answer:
Costco is following Customer Oriented Strategy in the business.
Explanation:
Costco offers around 4000 different products to its 64 million members. Costco is now planning to stock more of organic products as the popularity for these products among its customers in gaining significance. Costco has also planned to help farmers to grow organic farms which will benefit the Costco customers. This is customer oriented strategy because Costco is focusing on the needs of its customers.
Answer:
d. It will have a credit balance of $100,000.
Explanation:
In the income statement, the total revenues and the total expenses are recorded.
If the total revenues are more than the total expenditure then the company earns net income
And, If the total revenues are less than the total expenditure then the company have a net loss
This net income or net loss would reflect in the statement of the retained earning account.
So, the balance of income summary equals to
= Sales - expenses
= $540,000 - $440,000
= $100,000
The dividend should be deducted from the retained earning account. Hence, it will not be consider here
Answer:
a.the price level is higher than expected making production more profitable.
Explanation:
The sticky wages shows that the output increases if the price level is higher because an increase in price level increases the profitability and the increased profitability increases output.
Answer:
-$5,500
Explanation:
The computation of the overall effect on the company net operating income is as follows:
New Variable cost per unit is
= $44 + $11
= $55
Now the new contribution margin per unit is
= $220 - $55
= $165
New unit Monthly sales is
= 7,000 units + 500 units
= 7,500
Now
New total contribution margin :
= 7,500 units × $165
= $1,237,500
And, the Current total contribution margin is
= 7,000 units × $176
= $1,232,000
So, the change would be
= $1,232,000 - $1,237,500
= -$5,500
