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3 years ago

When the price is greater than the marginal cost for a firm in a competitive market,

Business

1 answer:

Vesna [10]3 years ago

3 0

Answer: there are opportunities to increase profit by increasing production.

Explanation: one of the main purpose of doing business is to maximize profits.

When the price of a good is higher than the marginal cost (cost associated with producing one more unit) the business should increase production in order to maximize profits. This is really effective in a competitive market as competitors will look for ways to make their products sell too.

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The following data were taken from Alvarado Company's balance sheet: Dec. 31, 2019 Dec. 31, 2018 Total liabilities $4,085,000 $2

Rudik [331]

Answer:

Dec. 31, 2019 Ratio to Liabilities to Owner's Equity = 0.95

Dec. 31, 2018 Ratio to Liabilities to Owner's Equity = 0.80

Explanation:

given data

Dec. 31, 2019

total liabilities = $4,085,000

Total owner's equity = 4,300,000

Dec. 31, 2018

total liabilities = $2,880,000

Total owner's equity = 3,600,000

to find out

Compute the ratio of liabilities to owner's equity

solution

we know that here Ratio to Liabilities to Owner's Equity is Total Liabilities divide Total Owner's Equity ....................1

now put here value for both 2018 and 2019 from equation 1

so for Dec. 31, 2019

Ratio to Liabilities to Owner's Equity = $\frac{4085000}{4300000}$

Ratio to Liabilities to Owner's Equity = 0.95

and for Dec. 31, 2018

Ratio to Liabilities to Owner's Equity = $\frac{2880000}{3600000}$

Ratio to Liabilities to Owner's Equity = 0.80

6 0

3 years ago

Will the financial statements of a company always differ when different choices at the start of the accounting period are made r

german

Answer:

Will the financial statements of a company always differ when different choices at the start of the accounting period are made regarding the denominator-level capacity concept?

A. No. It depends on how a company handles the production-volume variance in the end-of-period financial statements. For example, if the adjusted allocation-rate approach is used, each denominator-level capacity concept will give the same financial statement numbers at year-end.

Explanation:

Level capacity strategy

The organisation manufactures or produces at a constant rate of output ignoring any changes or fluctuations in customer demand levels. This often means stockpiling or higher holdings of inventory when customer demand levels fall

4 0

3 years ago

Helppp mee please!!!give me your opinion!

k0ka [10]

Answer:

YES

Explanation:

Information systems can in fact provide solutions to a lot of organizational problems in businesses and companies. Information Systems can help collect data, statistics, and overall organization. Let's say you are looking into starting a moving business. In order to do that you need to hire employees. An information system such as Indeed can assist you with that. If you are looking to provide invoices to your customers an information system such as Quickbooks can help you with that. There are soo many Information Systems our there that can help a business with any problem.

8 0

3 years ago

Poppy Co. uses a periodic inventory system. Beginning inventory on January 1 was understated by $30,200, and its ending inventor

svp [43]

Answer:

the cost of goods sold is $34,460 understated

Explanation:

The computation of the cost of goods sold is shown below

Let us assume the cost of goods sold be X - Y

X + $30,200 + ($21,400 - $2,140) = Y + $15,400

X + $49,460 = Y + $15,000

X - Y = $49,460 - $15,000

X - Y = $34,460

Hence, the cost of goods is $34,460

Since both the ending and opening inventory are understated so the cost of goods sold is also understated

Therefore the cost of goods sold is $34,460 understated

7 0

3 years ago

A beautiful bridge is being built over the river that runs through a major city in your state. The cost of the bridge is estimat

Maslowich

Answer:

$18.20 million

Explanation:

Net present value = Initial cost + (Annual cost/3%)

Net present value = $600 million + $200,000/3%

Net present value = $600 million + $6.67 million

Net present value = $606.67 million

Annualized cost = Net present value * 3%

Annualized cost = $606.67 million * 3%

Annualized cost = $18.20 million

So, the annualized cost of the bridge project is $18.20 million.

8 0

3 years ago