Paid on commission is by how much you sell not by paycheck or by hour. Lets say you go out and sell a radio add, if your commission is 25% and you make 100 dollars you would only get to keep 25 dollars.
Economic profits (or loss) is defined as the difference between revenues and the opportunity cost forgone. In the current case, the entrepreneur opted to start a business rather than being employed.
Therefore;
Economic profit = Revenues - Opportunity cost
In this problem;
Revenues = $300,000 - $150,000 - $25,000 - $25,000 = $100,000
Opportunity cost = $75,000
Therefore;
Economic profit = $100,000 - $75,000 = $25,000
I think the answer is C !!!!! I’m not 100% sure though
Answer:
Option B, PRODUCT LINE
Explanation:
A product line is a group of related products all marketed under a single brand name that is sold by the same company. Companies sell multiple product lines under their various brand names, seeking to distinguish them from each other for better usability for consumers.
Product lines are created by companies as a marketing strategy to capture the sales of consumers who are already buying the brand. The operating principle is that consumers are more likely to respond positively to brands they know and love and will be willing to buy the new products based on their positive experiences with the brand in the past.
McDog T-bone, Lapdog Lunchtreats, Rover's Potroast, Puppy Porterhouse and Prime cuts are a group of products which are physically similar and are intended for the same market; the dog food market.
Therefore, the option that best suits the question is option B; Prime Cuts will be an addition to the company's PRODUCT LINE in the dog food market.
