Answer:
The answer is: E) It would not necessarily be considered high elsewhere
Explanation:
Usually the inflation rate in the US and Europe is around 1-3%. In the early 1980's the US inflation rate was above 10% so it was considered huge. But if you consider it against inflation rates in other countries, like Argentina for example, which currently has an annual inflation rate of over 60% then it wasn't that big. During the 1980's many countries suffered from hyperinflation, with monthly inflation rates of over 50%.
So the high inflation rate in the US and Europe wasn't necessarily high for other countries.
Answer:
13.5%
Explanation:
Relevant data provided for computing the profit margin which is here below:-
Net Income = $175,000
Net Sales = $1,300,000
The computation of profit margin is shown below:-
Profit Margin = (Net Income ÷ Net Sales) × 100
= ($175,000 ÷ $1,300,000) × 100
= 13.5%
Therefore for computing the profit margin we simply applied the above formula.
Answer:
False
Explanation:
Variable costs are part of direct expenses incurred in the production of goods meant for sales. Variable costs have a direct and proportionate relationship with the output level. An increase in output level increases variable costs. Examples of variable costs are packaging and raw materials.
The contribution margin is the dollar amount available from the sale of each unit to cater for fixed costs and profits. It is calculated by subtracting variable costs from the selling price. The contribution margin is used in determining the break-even point and the output level required to achieve desired profits.
Answer:
retail charge cards
Explanation:
A credit card can be defined as a small rectangular-shaped plastic card issued by a financial institution to its customers, which typically allows them to purchase goods and services on credit based on the agreement that the amount would be paid later with an agreed upon interest rate.
Hence, the use of credit cards by consumers broadens a small company's customer base.
This ultimately implies that, small businesses or companies who avail their customers the opportunity to pay using a credit card will increase the number of customers that would patronize them because they are typically buying the goods and services on credit.
Generally, there are three (3) main types of credit card and these includes;
I. Debit card.
II. Prepaid card.
III. Retail charge cards.
A retail charge card can be defined as a type of credit card commonly issued by retailers to their customers in order to avail the customers an ability to charge their goods and services to a specific amount that has been established prior to a purchase.
Hence, it is most common in merchant department, car rental firms, oil companies, clothing stores and other high-volume outlets, where customers are likely to make several purchases each month.
