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3 years ago

Which of the following is true of a pure monopoly? Group of answer choices

Business

1 answer:

PilotLPTM [1.2K]3 years ago

8 0

Answer:

The answer is A

Explanation:

Pure monopoly can raise the market price indefinitely due to the fact that the market structure is characterized by a single seller or manufacturer, selling a particular product in the market. In a pure monopoly market, the seller faces no competition, as he is the sole seller of goods with no close substitute. He enjoys the power of setting the price for his goods. This in-turn leads to the customers being at the mercy of the seller.

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Present Value of Ordinary Annuity Period/Rate 5% 6% 7% 8% 9% 10 7.7217 7.3601 7.0236 6.7101 6.4177 11 8.3064 7.8869 7.4987 7.139

klasskru [66]

Answer:

The discount rate of 8% for 11 year period provides the present value of annual cash flows to be equal to the initial investment.

Explanation:

Using the table of present value of annuity provided, we can check the rate and time period which is return the present value of cash flows from the project to be equal to initial Investment.

We are told that the Project's life is expected to be 11 Years. Thus using the 11 year period from the table we can see the following rates,

<u>11 Year Period</u>

Rate = 5% , Annuity Factor = 8.3064

Rate = 6% , Annuity Factor = 7.8869

Rate = 7% , Annuity Factor = 7.4987

Rate = 8% , Annuity Factor = 7.1390

Rate = 9% , Annuity Factor = 6.8052

We know that the annual cash flows from the project is $1,000,000 and we know the Initial Outlay is $7,139,000.

Multiplying the annual cash flow from the above annuity factors for each rate we can see which rate provides the present value of annual cash flows to be equal to initial outlay.

Rate = 5% , Present value = 8.3064 * 1000000 = $8,306,400

Rate = 6% , Annuity Factor = 7.8869 * 1000000 = $7,886,900

Rate = 7% , Annuity Factor = 7.4987 * 1000000 = $7,498,700

Rate = 8% , Annuity Factor = 7.1390 * 1000000 = $7,139,000

Rate = 9% , Annuity Factor = 6.8052 * 1000000 = $6,805,200

From the above calculation we can see that the rate of 8% provides the present value of annual cash flows to be equal to the initial investment.

7 0

3 years ago

Due to political instability in the country of United Mapa, the strategic leaders at the headquarters of FT Supplies Inc. have d

Korolek [52]

Answer: (D) Corporate strategy

Explanation:

The corporate strategy is one of the type of strategic planning method that helps in achieving the main objective of the company and also improving the various types of business units in an organization.

The corporate strategy basically creating the values and also developing the various types the various types of unique advantages for selling the products and the services in the market.

According to the given question, due to some political instability the strategic leader of the company decided to divest in the business and this is known as the corporate strategy.

Therefore, Option (D) is correct answer.

3 0

3 years ago

Presented below is information related to Crane Company at December 31, 2020, the end of its first year of operations.

pshichka [43]

Answer:

Follows are the solution to the given points:

Explanation:

In point a:

Formula:

$= \text{sales-Cost of product sold -Selling and Administrative expense}$

$=316,550-150,400-53,900\\\\=112,250$

In point b:

Formula:

$=\text{Income from operation + Gain on sale of plant assets} - \text{Interest Expense} -\text{Loss from discontinued operations}\\\\=112,250+30,560- 5,840- 11,990\\\\=124,980$

In point c:

Formula:

$=\text{Net Income- Allocation to noncontrolling interest}$

$= 124,980 - \text {missing value}$

In point d:

Formula:

$=\text{Net Income+ Unrealized gain on available for sale debt investments}\\\\= 124,980- 9,460\\\\=115,520$

In point e:

Formula:

$=\text{Net Income - Dividends declared and paid}\\\\=124,980- 4730\\\\=120,250\\\\$

5 0

3 years ago

On January 1, Year 1, Boyd Corporation accepts a $10,000 three-month, nine percent promissory note from one of its customers. To

mihalych1998 [28]

Answer:

The borrower records its receipt of cash and new liability with this entry

Jan 1 Notes Receivable $10,000 Dr.

Sales / Accounts Receivable $10,000 Cr.

Received Note of 3 months with 9% interest

The entry would credit to Sales if it is received against sales or credit to account receivable isf it is received against accounts receivable for a further time period as the case may be.

6 0

3 years ago

Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its mo

11111nata11111 [884]

Answer:

Wingate Company

1. Contribution Format

Segmented Income Statement

For the most recent month

East Central West Total

Sales $408,000 $650,000 $580,000 $1,638,000

Variable expenses as a

percentage of sales 208,080 227,500 243,600 679,180

Contribution margin $199,920 $422,500 $336,400 $958,820

Traceable fixed expenses $280,000 $333,000 $204,000 $817,000

Non-traceable fixed expenses 238,000

Net income ($80,080) $89,500 $132,400 ($96,180)

2. The company's net operating loss will decrease by $28,824.

Explanation:

a) Data and Calculations:

WINGATE COMPANY

Income Statement for the most recent month

Sales $1,638,000

Variable expenses 679,180

Contribution margin 958,820

Fixed expenses 1,055,000

Net operating income (loss) $(96,180)

Division

East Central West Total

Sales $408,000 $650,000 $580,000 $1,638,000

Variable expenses as a

percentage of sales 51% 35% 42%

Traceable fixed expenses $280,000 $333,000 $204,000 $817,000

Non-traceable fixed expenses 238,000

West Division:

Traceable fixed costs = $229,000 ($204,000 + $25,000)

Sales revenue = $672,800 ($580,000 * 1.16)

Variable expenses = $282,576 ($672,800 *42%)

1. Contribution Format

Segmented Income Statement

For the most recent month

East Central West Total

Sales $408,000 $650,000 $580,000 $1,638,000

Variable expenses as a

percentage of sales 208,080 227,500 243,600 679,180

Contribution margin $199,920 $422,500 $336,400 $958,820

Traceable fixed expenses $280,000 $333,000 $204,000 $817,000

Non-traceable fixed expenses 238,000

Net income ($80,080) $89,500 $132,400 ($96,180)

2. Contribution Format

Segmented Income Statement

For the most recent month

East Central West Total

Sales $408,000 $650,000 $672,800 $1,730,800

Variable expenses as a

percentage of sales 208,080 227,500 282,576 718,156

Contribution margin $199,920 $422,500 $390,224 $1,012,644

Traceable fixed expenses $280,000 $333,000 $229,000 $842,000

Non-traceable fixed expenses 238,000

Net income ($80,080) $89,500 $161,224 ($67,356)

Decrease in net operating loss = $28,824 ($96,180 - $67,356)

7 0

3 years ago