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Leya [2.2K]
3 years ago
11

Comparing marginal revenue to marginal cost

Business
1 answer:
Mariana [72]3 years ago
5 0

Answer:

(i) reveals the contribution of the last unit of production to total profit

and

(ii) is helpful in making profit-maximizing production decisions.

Explanation:

As MR and MC can tell u what the last output contributed to the profit. change in profit = MR-MC. So we can gain insight on the profit and firm can then according to this make decision on how much to produce i.e. level where MR = MC.

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Which of the following is an example of a strategic action?
Pavlova-9 [17]

Answer:

Option D. Entry into the European market by Home Depot.

Explanation:

The reason is that the strategic actions are long term actions and are market based moves which bounds the organizational resources for implementation and are also very difficult to reverse.

So here use of coupons, fare increases and two for one offers are easily reversible, requires fewer organizations resources for implementation and short term decisions which means these are tactical actions.

Whereas the decision to enter european market by Home Depot is long term decision, bounds organization resources for implementation and is very difficult to implement or reverse the actions once taken, so it is strategical action of Home Depot.

8 0
3 years ago
Chang Industries has 2,500 defective units of product that have already cost $14.50 each to produce. A salvage company will purc
Lubov Fominskaja [6]

Answer:

$27,250

Explanation:

The computation of incremental income or loss on reworking the units is shown below:-

For computing the incremental income or loss on reworking the units first we need to follow some steps which is shown below:-

Incremental revenue per unit = Selling price after rework - Selling price as scrap

= $22.00 - $5.60

= $16.40

Total Incremental Revenue = Incremental revenue per unit × Total defective units

= $16.40 × 2,500

= $41,000

Total rework costs = Total defective units × Defects per unit

= 2,500 × $5.50

= $13,750

Now,

Incremental income or loss on reworking the units = Total Incremental Revenue - Total rework costs

= $41,000 - $13,750

= $27,250

7 0
3 years ago
On January 1, a company issues bonds dated January 1 with a par value of $460,000. The bonds mature in 5 years. The contract rat
Stolb23 [73]

Answer:

January 1, 202x, bonds issued at a discount

Dr Cash 441,361

Dr Discount on bonds payable 18,639

         Cr Bonds payable 460,000

amortization of bond discount = ($441,361 x 4%) - ($460,000 x 3.5%) = $17,654.44 - $16,100 = $1,554.44

June 20, 202x, first coupon payment

Dr Interest expense 17,654.44

       Cr Cash 16,100

       Cr Discount on bonds payable 1,554.44

7 0
3 years ago
For each of the following transactions, identify it as a financial capital inflow or financial capital outflow in the United Sta
Alexxandr [17]

Answer: See explanation

Explanation:

The balance of payment show tge transactions that occur between a country and another country.

a. The U.S. exports cars to be sold in Canada.

This is a financial capital inflow and the transaction is in the current account.

b. Pepsi buys a factory in Mexico.

This is a financial capital outflow and the transaction is in the financial account.

c. A Brazilian company buys an apartment building in Boston.

This is a financial capital inflow and the transaction is in the current account.

d. The central bank of China purchases a U.S. Treasury Bond.

This is a financial capital inflow and the transaction is in the financial account.

e. A businessman is paid dividends on the stock from a foreign corporation that he owns.

This is a financial capital inflow and the transaction is in the financial account.

5 0
3 years ago
Today's public relations departments:
devlian [24]

Answer:

a. are more actively listening to customers and helping to solve their problems.

Explanation:

The purpose of public relations is to educate and eventually convince the public, potential clients, investors, etc, to maintain a positive impact or favorable opinion of the company.

Therefore, Public relations is the most effective way to interact with customers, listening to them, and solve their queries so that company can gain their trust by fulfilling their needs within the prescribed time.

7 0
3 years ago
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