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3 years ago

Because a monopolistic competitor has some monopoly power, advertising to increase that monopoly power makes sense as long as

Business

1 answer:

densk [106]3 years ago

5 0

Answer: the marginal benefit of advertising exceeds the marginal cost of advertising

Explanation: Under a monopolistic competition, there are fewer sellers in the market, and due to the fact that a monopolistic competitor has some monopoly power, advertising to increase that monopoly power makes sense as long as the marginal benefit of advertising exceeds the marginal cost of advertising allowing the monopolist to turn a profit for the business while keeping it relevant for as long as is possible.

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Krit corporaton is a US manufacturing company based in the Midwest. As an investor, Wilson bought 225 shares of stock in Krit Co

AysviL [449]

Answer:

The correct answer is $10,125 and increase in wealth.

Explanation:

According to the scenario, the given data are as follows:

Total shares bought = 225 shares

Current stock price = $45

So, we can calculate Wilson's total wealth in Krit Corp. by using following method:

Total wealth = Total shares bought × Current stock price

= 225 × $45

= $10,125

Hence, the total wealth of Wilson is $10,125.

Wilson wealth will increase because if the company stock price increase Wilson's stock price also increase, which results in increase of wealth.

8 0

3 years ago

Backstreets Co. recently acquired all of Jungleland, Inc.'s net assets in a business acquisition. The cash purchase price was $7

kirill [66]

Answer:

The goodwill that resulted from the transaction is $1.3 million, the excess paid by Backstreets Co. over the net assets of Jungleland Inc. acquired

Explanation:

Goodwill is the excess of purchase consideration over net assets acquired in a business combination.

The total net assets acquired can be deduced as total assets less total liabilities:

Land $2m

Buildings $3.7m

Inventory <u>$2.5m</u>

total assets 8.2m

Liabilities ($1.8m)

Net Assets $6.4 m

Purchase price $7.7 m

Goodwill is $1.3m ($7.7m -$6.4m)

The goodwill is the advantage that the owners business have over the new owners being the pioneers that set the business on the right path

5 0

4 years ago

Variable manufacturing costs are $126 per unit, and fixed manufacturing costs are $157,500. Sales are estimated to be 10,000 uni

AveGali [126]

Answer:

$52,500

Explanation:

Plan - 1 Plan - 2

Units produced 10,000 15,000

Variable Manufacturing cost $126 $126

Fixed manufacturing cost $15.75 $10.50

($157,500 ÷ Units produced)

Unit cost $141.75 $136.50

Working note

Fixed manufacturing cost for Plan A = $157,500 ÷ 10,000

= $15,75

Fixed manufacturing cost for Plan B = $157,500 ÷ 15,000

= $10.50

Unit cost for Plan A = $126 + $15.75

= $141.75

Unit cost for Plan B = $126 + $10.50

= $136.50

Income under two plans different for the amount as below Number of units in ending inventory in Plan -2 = 5,000 units

(i.e. 15000 units produced - 10,000 units sold)

Fixed manufacturing of per unit = $10.5

Difference in Income in two plans under Absorption costing = 10,000 × $10.5

= $52,500

Variable costing

Therefore, there will be no difference in income of Two plans under Variable costing.

5 0

4 years ago

In the context of intergroup conflict, managers should encourage social interactions across groups so that:

FrozenT [24]

Answer:

(A) trust can be developed.

Explanation:

A manager can be defined as an individual who is saddled with the responsibility of providing guidance, support, supervision, administrative control, as well as acting as a role model or example to the employees working in an organization by being morally upright.

Generally, managers are typically involved in taking up leadership roles and as such are expected to be build a strong relationship between their employees or subordinates by creating a fair ground for effective communication and sharing of resources and information. Also, they are required to engage their staff members (entire workforce) in the most efficient and effective manner.

A conflict can be defined as any form of disagreement that arises between two or more parties due to opposing views, opinions, or incompatibility.

Basically, the first step that any manager should take in resolving a conflict within a group of employees working as a team is to get each individual to state the problem from his or her viewpoint.

In the context of intergroup conflict, managers should encourage social interactions across diverse groups so that trust can be developed among the members and as such mitigating the chances of conflict between them.

4 0

3 years ago

n 2018, Warehouse 13 had net credit sales of $750,000. On January 1, 2018, Allowance for Doubtful Accounts had a credit balance

Finger [1]

Answer:

$28,000

Explanation:

When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.

To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.

Given that Past experience indicates that the allowance should be 10% of the balance in receivables

Allowance = 10% * $150,000

= $15,000

Since during 2018, $29,000 of uncollectible accounts receivable were written off

Balance in allowance account before adjustment

= $29,000 - $16,000

= $13,000 (Debit)

Required adjustment for Doubtful Accounts at December 31, 2018

= $13,000 + $15,000

= $28,000

4 0

3 years ago