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pishuonlain [190]
3 years ago
7

The Mykari Publishing House invested in buying high-end machinery that allowed its newspapers to be printed at twice the speed o

f average printing machines. The executives of the company stated that this would increase the company's profit margin by 12% as opposed to the usual 7 to 8% that it makes annually. When the finances of the company were tallied this year, it was found that the profits increased to about 19%. This scenario best illustrates ________.
Business
1 answer:
Brums [2.3K]3 years ago
8 0

Answer: above-average profits

Explanation: In the given case, while making the change in the operations the managements anticipated an increase in profit by 125 max. These types of anticipations are done by the managers on the basis of past records or the current existing trends.

Usually under such situations the management tries to take average of the anticipated figures so that expectations of take holders would not get high too much.

Hence the increase of 19% depicts that the profit increased by more than the average level as anticipated by the managers.

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Which of the following can be classified as data flow for a book store?
marishachu [46]
<span>C.) The amount of money earned in a week being invested in new book purchase

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5 0
3 years ago
Which of the following should be included in an individual taxpayers federal gross income
Kobotan [32]

Answer:

I believe your wages, dividends, business income, capital gain, retirement distributions as well as other income should all be included in an individual  gross business income

Explanation:

Let me know if this helps!

8 0
2 years ago
Red Hot Chili Peppers Co. had the following activity in its most recent year of operations.Classify the items as (1) operating—a
lora16 [44]

Answer:

a. Purchase of Equipment  - (3) investing

b. Redemption of bonds payable  - (4) financing

c. Sale of building  - (3) investing

d. Depreciation  - (1) operating—add to net income;

e. Exchange of equipment for furniture  - (5) significant noncash investing and financing activities

f. Issuance of capital stock  - (4) financing

g. Amortization of intangible assets  - (1) operating—add to net income

h. Purchase of treasury stock  - (4) financing

i. Issuance of bonds for land - (5) significant noncash investing and financing activities

Explanation:

The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.

The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.  

The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.

7 0
3 years ago
Suppose the price of tomatoes falls, ceteris paribus. Describe the impact the substitution effect and the real income effect wou
mamaluj [8]

Answer:

Ceteris paribus assumption: Demand curves relate the prices and quantities demanded assuming no other factors change

Explanation:

Ceteris paribus is a  Latin phrase meaning “other things being equal”. If all else is not held equal, then the laws of supply and demand will not necessarily hold.

Demand is the amount of some product a consumer is willing and able to purchase at each price.

IMPACT THE SUBSTITUTION EFFECT AND THE REAL INCOME

A substitute is a good or service that can be used in place of another good or service. A lower price for a substitute decreases demand for the other product and increases the quantity demanded for tomatoes

A change in the price of a good or service causes a movement along a specific demand curve, and it typically leads to some change in the quantity demanded, but it does not shift the demand curve.

3 0
3 years ago
Darnell lives in Philadelphia and runs a business that sells pianos. In an average year, he receives $842,000 from selling piano
Karolina [17]

Answer:

The wholesale cost for the pianos that Darnell pays the manufacturer - explicit cost  

The salary Darnell could earn if he worked as an accountant - implicit cost

The wages and utility bills that Darnell pays - explicit cost  

The rental income Darnell could receive if he chose to rent out his showroom.-implicit cost

Explanation:

Explicit cost includes the amount expended in running the business.

They include rent , salary and cost of raw materials

Explicit cost is used in determining accounting profit

Implicit cost or opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives

Implicit cost is used in determining economic profit

If Darnell didn't use his showroom, he could have rented it out. Renting it out is his next best option that was forgone. Thus, it is an implicit cost

If Darnell didn't start his business, he could have been working as an accountant. The amount he could have earned as an accountant is his implicit cost

7 0
3 years ago
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