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Anvisha [2.4K]
3 years ago
6

Why is gross profit more important than net profit

Business
1 answer:
kozerog [31]3 years ago
4 0
Gross profit shows how much money you made in relation to the cost of goods sold, this calculation is very important when you need to know wether a product is profitable or not. Net profit also substracts the expenses (building machinery,etc).
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Bob owns a trout farm with monopoly power in North Carolina. Bob's optimal output occurs where marginal revenue _____ marginal c
Neko [114]

Answer and Explanation:

C) equals marginal cost: is upward-sloping

8 0
3 years ago
​an automobile manufacturing company has developed an electric car that uses sunlight to charge itself during movement. this new
aalyn [17]
<span>The electric car that uses sunlight to charge itself during movement is a </span>new invention which is a development in the technological component of the general environment of the company. <span>Changes in technological components can be a benefit or a threat to a business. This one is a benefit to the business.</span>
4 0
3 years ago
Generally, when business startup costs exceed the maximum amount allowed, the remaining costs may be amortized over_____ months.
irina1246 [14]

Answer:

The correct answer is letter "B": 180.

Explanation:

During the first year a business operates, companies can elect to deduct up to $5,000 from their costs. If the costs are higher than $50,000, the deduction of $5,000 will be reduced by the exceeding amount. However, that exceeding amount can be amortized for up to 15 years (180 months).

8 0
3 years ago
A company purchased $3,600 worth of merchandise. transportation costs were an additional $315. the company later returned $250 w
Anestetic [448]

Answer: $3,564.50

Explanation:

The total amount that the company will pay for the merchandise is the net cost of the merchandise, less a 3% cash discount, plus the transportation costs. The cash discount normally only applies to the merchandise and not the transportation costs.

The cost of the merchandise is $3,600 less the $250 refund, which equals $3,350. With a 3% cash discount they will pay 97% of this amount, which is $3,249.50. After adding the additional transportation charge of $315, the total amount to be paid is $3,564.50.

6 0
3 years ago
Mobray Corp. is experiencing rapid growth. Dividends are expected to grow at 32 percent per year during the next three years, 22
KatRina [158]

Answer:

$1.3794

Explanation:

The computation of the projected dividend for the coming year is shown below:

Last year dividend paid = Do

Expected Dividend in Year 1 (D1) = Do ( 1+g) = Do × 1.32

Dividend in Year 2 (D2) = Do ( 1+g)^2  = Do × 1.32^2

Dividend in Year 3 (D3) =  Do ( 1+g)^3 = Do × 1.32^3

Dividend in year 4 , (D4) = D3 ×  (1+g) = Do × 1.32^3 × 1.22

Now the price at year 4 is

P4 = D4 × (1+g) ÷ ( R-g )

= Do × 1.32^3 × 1.22 × (1 + 0.07 ) ÷ ( 0.10 - 0.07 )

= Do × 100.08

Use Gordon Growth Model

The Current Price of Stock is

= D1 ÷ ( 1+ R)^1 +D2 ÷ ( 1+ R)^2 + D3 ÷ ( 1+ R)^3 + D4 ÷ ( 1+ R)^4 + P4 ÷ ( 1+ R)^4

$78  = Do ( 1.32 ÷ 1.1 + 1.32^2 ÷ 1.1 ^2 + 1.32^3 ÷ 1.1^3 +1.32^3 × 1.22 ÷ 1.1^4 + 100 .08 ÷ 1.1^4)  

$78 = Do ( 1.2 +1.44 + 1.728 + 1.9165 + 68.36 )

Do = $1.045

Now

Projected Dividend for Year 1 is

= Do × 1.32

= $1.045 × 1.32

= $1.3794

8 0
4 years ago
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