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3 years ago

Why net profit will be higher if increases average prices to customers?

Business

1 answer:

vampirchik [111]3 years ago

6 0

Answer:

Higher prices with same sales quantity will mean greater profit.

Explanation:

Let's hold some variables constant. If a business sells books, and they take the prices up, if they sell the same quantity (at higher prices) this would increase revenues. Higher revenues, less the same cost structure (variable and fixed costs) will lead to a greater profit generation. Of course in the real world, price elasticity of demand comes in play when prices are changed. If prices go up, typically sales quantity will decrease and there may be a net effect in revenue and hence profit. In the simple case where prices go up and sales quantity is unaffected, net profit will rise.

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The following account balances were extracted from the accounting records of Thomas Corporation at the end of the year:

Savatey [412]

Answer: $1,063,000

Explanation:

Net realizable value is the value of an asset that a company will get when the asset is sold minus the cost that came with the asset sales.

The net realizable value of the accounts receivable will be the accounts receivable of $1,100,000 minus the allowance for uncollectible accounts which was given as $37,000.

= $1,100,000 - $37,000

= $1,063,000

7 0

3 years ago

The office supplies account had a $240 debit balance on december 31, 2016. during 2017, $5,200 of office supplies are purchased.

Trava [24]

If you are looking for the adjusting entry at the end of the year, it would be:

Office Supplies Expense 5000 Office Supplies 5000

The amount to be recorded is 5000 because:

Beginning supplies is $240

Then there is an additional supplies $5,200

So there is a total of 5,440 supplies.

But the ending inventory is $440.

Deduct the $440 from the $5440 which will give us $5,000. This is to make sure that the amount in the journal entry at the end of the year will be same with the physical count of the supplies.

4 0

3 years ago

International Imports is a merchandising Firm. Last year they reported sales of $674,500 and cost of goods sold of $404,700. The

dimaraw [331]

Answer:

The total contribution margin for the firm is: $209,095

Explanation:

The contribution margin is calculated by using following formula:

Contribution margin = Total sales – Total variable costs

In International Imports,

Total sales = $674,500

Total variable costs = cost of goods sold + total variable selling and administrative expense = $404,700 + $60,705 = $465,405

Contribution margin = $674,500 - $465,405 = $209,095

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3 years ago

Question: According to a Honda press release on October 23, 2006, sales of the fuel-efficient four-cylinder Honda Civic rose by

inysia [295]

<h2>Answer:</h2><h2>i don't know </h2>

Explanation:

<h2>because im a grade 3 </h2>

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3 years ago

poornima gupta is retiring soon, so she is concerned about her investments providing her steady income every year. she is aware

pshichka [43]

In a case whereby poornima gupta is retiring soon, so she is concerned about her investments providing her steady income every year, the risk is poornima most concerned about protecting against is interest reinvestment risk.

<h3>What is interest reinvestment risk?</h3>

Reinvestment rate risk can be described as the risk that should be considered in the case whereby the investor have the reason to carry out reinvestment in regards with the future cash flows which could come inform of a lower return as a result of the interest rate declines.

It should be that this risk is very important to be taken serious by the investors because any slight mistake can result to very huge lost in the part of the investor and this can bring down there investor in term of finance which is very dangerous for his health as well as other investment that he have outside.

Why net profit will be higher if increases average prices to customers?​

Why net profit will be higher if increases average prices to customers?