ANSWER: For any producer to gain and maximize profit, they can lower the costs of production and revenues should be greater than the cost. So, the options would be
B) They can work to decrease their marginal cost.
C) They can raise prices to increase marginal revenue.
E) They can keep marginal costs below marginal revenues.
All these factors will either lead to increased revenue and lower costs or only keep the costs low thus maximizing profit.
Answer: True
Explanation:
Projects are carried out with the consideration that risk would definitely occur, and during the analysing phase of any project all risk that would evolve are carefully studied and proactive solutions are provided. When starting projects there is definitely a high risk due to the energy of how the work would go but careful implementation helps curb the situation.
Answer:
Results are below.
Explanation:
<u>A: To calculate the gross profit, we need to use the following formula:</u>
Gross profit= sales - cost of goods sold
Gross profit= 990,000 - 693,000
Gross profit= $297,000
B: <u>Now, the gross profit percentage:</u>
Gross profit percentage= (gross profit / sales)*100
Gross profit percentage= (297,000 / 990,000)*100
Gross profit percentage= 30%
C: F<u>inally, a net income is reported in the income statement at the moment of the sale</u>. It doesn't matter if the sale was paid or not.
Answer:
<u>18,750 units</u>
Explanation:
A firm has the following forecast information for sales of Product X:
April 15,000 units
May 17,000 units
June 19,000 units
July 18,000 units Product X sells for $3 per unit.
Half of the firm's sales are for cash and the other half is on account.
Credit sales are collected in the following pattern: 60% in the month of sale, 30% in the month following sale, and 5% in the second month following sale (the remainder are uncollectible).
If the firm targets its ending inventories to be 25% of the following month's sales, what are the budgeted purchases (in units) for June
.
Purchases Budget = Required production for sales - opening inventory of raw materials + closing inventory of raw materials = Raw materials required
June's Production Budget
Required production for sales = .............................................19,000 units
less: Beginning inventory (25% of June's sales) =............... 4,750 units
Add: Required Ending Inventory (25% of July's sales) = ...<u>4,500 units</u>
Raw materials required for purchase in June =.................. <u>18,750 units</u>
Answer:
$3, $2, True
Explanation:
The change in the selling price of cola from $5 before the introduction of a tax by the government to $7 after the tax was introduced is simply a decision of the producer. This only has an effect on the volume of cases sold as the law of demand states that the higher the price, the lower the demand and vice versa. As such, if the consumer pays $7 per case after the introduction of tax and only $4 per case goes to the producer, the tax on a case is $3 ($7-$4).
The burden that falls on the consumer is $2 per case. Prior to the introduction of tax, the selling price per case (which goes to the producer) was $5. This is also the cost a consumer parts with for a case of cola. After the introduction of the tax, the consumer parts with $7 ($2 more than the cost before tax was introduced) while the producer gets $4 as against $5 (before tax was introduced). Hence the tax burden on the producer per case is $1 ($5-$4) and $2 per case on the consumer ($7-$5).
If all of the tax had been levied on the consumer, the producer would have received $5 per case (as received before tax was introduced) while the consumer would part with $8 per case ($3 as tax). This would have resulted in the consumer parting away with one more extra dollar. As such, with the law of demand that states that the higher the price, the lower the quantity demand, the effect of the tax on quantity sold would have been larger if it had been levied on the consumer only.
