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Arte-miy333 [17]
3 years ago
10

Blue ace autos inc. and ferdova autos inc. are two competing automobile companies. while blue ace autos' cost of goods sold/reve

nue is 63.4 percent, the cost of goods sold/revenue of ferdova autos is 54.2 percent. what do you infer from this financial data?
Business
1 answer:
Galina-37 [17]3 years ago
7 0
Given:
Blue Ace Autos Inc: cost of goods sold / revenue = 63.4%
Ferdova Autos Inc.: cost of goods sold / revenue = 54.2%

The percentage rate represents the part of the revenue that the cost of goods sold is a part of. This means that the revenue is 100%. The difference of the revenue and cost of good sold is the profit. The higher the percentage of the profit, the better.

Blue Ace Autos Inc: 100% - 63.4% = 36.6%
Ferdova Autos Inc: 100% - 54.2% = 45.8%

Ferdova Autos Inc. earn a higher profit (45.8% of revenue) than Blue Ace Autos Inc (36.6% of revenue).
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Which of the following activities describes the opportunity cost of attending an economics class?
zhuklara [117]

Answer:

C is the correct option

Explanation:

Opportunity cost is a concept of Macroeconomic theory. It is also known as an alternative cost. It is the value of what one gives up to choose something else. In simple terms, we can say that it is the value of the road not taken. In the above question, the value of the activities one had to leave to attend the economics class woul be known as the Opprtunity cost.

5 0
3 years ago
(10 marks) 1. Looking at Nigeria as a potential emerging market, mention and explain 4 factors you think are preventing Nigeria
Kisachek [45]

Answer:

1. Political instability

2. High cost of taxation

3. Insecurity

4. Changes in law and policy

Explanation:

1A. Political instability. The uncertainty regarding political decisions is one of the major threat to foreign investment in Nigeria. Where there are daily crises in terms of political events, such will scare away potential investors. Moreover, if government changes regulations guiding businesses or do not enforce such changes, it may cut down the returns that should ordinary be made by the investors hence discourage them from making further investment.

1B. High cost of taxation. Emerging economies such as Nigeria imposes too many taxes on local and foreign investors who have their companies situated there. For instance, the federal government through Federal lnland Revenue services is saddled with the responsibility of collecting various types of taxes such as company income tax, withholding taxes etc. Moreover, state governments also levy taxes on these companies for situating and carrying out business transactions in their state.

1C. Insecurity. The prevalence insecurity in the North East discourages investors from investing in Nigeria. The country has to grapple with the daily threat posed by these terrorist. Again, the activities of these terrorist group including the dreaded bandits and local militants have claimed and destroyed lots of lives and properties over the years. Due to their constant and continuous activities, Nigeria has been included among terrorist nations hence scares investors away from coming to invest in the country because no one would want his or her investments to be destroyed.

1D. Changes in law and policy. Emerging countries such as Nigeria is used to changing laws regulating businesses constantly. Most of these changes come through variation of existing contracts such as using executive powers(circulars, administrative orders,directives etc). The continuous changes in law and policy is capable of discouraging investors from investing in the country.

2. If I have the resources to change any of the above, I would change political instability. The reason is that a country that is not stable politically cannot attract foreign investment. I would try as much possible to bring together all the political players in the country by asking them to ignore their political differences hence work towards common good of the country.

4 0
3 years ago
Sanjay is looking for a new winter coat. Which of the following actions would NOT be part of making a comparison?
vova2212 [387]
I'm not sure but I am going with C on this  hope that I helped
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A continuous decrease in the level of prices over time is called ________.
Nostrana [21]
A continuous decrease in the level of prices over time is called deflation. It involves the contraction of the supply of money in an economy. The opposite of such is inflation. During this time, the power of the currency and the wages are high than what is normal.   It causes for capital, goods, services and labor costs to be lower. Monetary deflation can be caused by the decrease in supply of money or instruments that can be redeemed by money. In present, the supply of money is influenced by the central bank of each nation. Price deflation can be caused by a decrease in the demand of the goods and services and also increase in the productivity of the economy.
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3 years ago
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Answer:

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if Mel decides to sell dinners, the he will not have any spare capacity for producing cookies, so the production costs would be different:

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direct labor $0.15

total overhead (including variable and fixed) $0.45

total cost per cookie = $0.80

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b. Should Mel continue to buy the cookies? Yes No

It would be better for Mel to simply buy the cookies from an external supplier at $0.60.

Mel should only produce the cookies if he decides not to sell dinners.

6 0
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