Answer:
- $250
Explanation:
The economic profit calculation is presented below:
= Total revenues - explicit cost - implicit cost
where,
Total revenues = Explicit revenue × implicit revenue
= $15 × 50 items
= $750
Explicit cost = $200
Implicit cost = $20 × 40 hours = $800
Now place these values in the formula above
So the value would be equal to
= $750 - $200 - $800
= - $250
Answer: D, overall productivity in the industry decreases.
Explanation: a producer can gain less market share from a given price cut.
Increased in competition means there are more firms and this will not effect consumers decisions.
Specialization involves division of an organization's work and applies motivational theories to jobs to increase satisfaction and performance."
Answer:
OPTIMUS COMPANY
Home Division Responsibility Report For the Year Ended December 31, 2020
The report is attached in form of a variance report with comments. Where the variance is not indicated, it means that it was neither favorable nor unfavorable.
Explanation:
A responsibility report is usually presented by a division that is an investment center. An investment center has responsibility for return on investments.
The investment center takes charge of the cost, revenue, profit, and investments of the division. It is expected to produce returns on its investment that will be favorable to the shareholders of the company. It is directly responsible for profitability of the division vis-a-vis the capital investments made in the center. It is unlike other divisions like cost center, revenue center, and profit center, which narrowly report their performances in accordance with their responsibilities.
This is why it does not only report on the cost, but also the revenue, the profit and the returns on investment achieved during a period. An investment center is, therefore, the largest division of an entity.
Answer:
Doing a financial statement analysis.
Explanation:
Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.
Financial statement analysis can be defined as the process of analyzing, estimating and reviewing the financial statements of a business firm or organization in order to make better economic decisions and profits in the future.
Hence, when creditors, managers, and investors look at expenses as a percentage of revenue, they are doing a financial statement analysis.
