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4 years ago

Which of the following statements is TRUE with regard to gross margin?

Business

1 answer:

Naddik [55]4 years ago

7 0

ANSWER: (A)

EXPLANATION: Gross margin is the difference between revenue and cost of goods sold divided by revenue. Gross margin is expressed as a percentage. Generally, it is calculated as the selling price of an item, less the cost of goods sold. Gross Margin is often used interchangeably with Gross Profit, but the terms are different.

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Able Pads, Inc., sells plain white printer paper in a perfectly competitive market. What does its individual demand curve look l

nirvana33 [79]

Answer:

The demand curve will look like a straight line .

Explanation:

Perfect competition is that in which there are large number of buyers and large number of sellers of a commodity and no individual sellers or buyer can control the prices. If the seller try to influence the price then they will loss their buyers as there are many other seller also exist in the market.

Under perfect competition , the firm produce homogeneous product. Both buyers and sellers have full knowledge of the market.

The curve under perfect competition is indicated by horizontal . It shows that a firm can sell any quantity of a product at the prevailing price . And no quantity if they influence the price.

<u>The figure under shows the curve:</u>

3 0

4 years ago

Suppose two types of consumers buy suits. Consumers of type A will pay $100 for a coat and $50 for pants. Consumers of type B wi

n200080 [17]

Answer:

The firm will not sell any bundle, the amount of bundle to be sold will be zero.

Explanation

Solution

Since firm sells at $25 each for coats and pants, then If consumer wants to purchase both Pant and Coat, the customer will have to pay 25 + 25 = $50.

Also, If consumer purchase Pant and Coat as a Bundle then, he will pay 150. From the question stated we can conclude that their is a form of interest to pay for Pant and Coat for Both consumers are higher than 25.

However, they will have to pay an amount less for 1 coat and 1 pant if they buy this in a separate way instead of a Bundle.

We can say, that type of consumers (both) will not buy the pants and coat as a bundle, but will want to buy them separately.

Therefore, any bundle will not be sold by firm. the amount of Bundle sold will be known as a zero Bundle

5 0

3 years ago

Orem Corporation's current liabilities are $116,160, its long-term liabilities are $474,240, and its working capital is $162,600

jekas [21]

Answer:

Total long-term assets must equal: d $2,771,640

Explanation:

Orem Corporation's Total Debt (liabilities) = current liabilities + long-term liabilities = $116,160 + $474,240 = $590,400

Debt-to-equity ratio = Total Debt/Total Equity

Total Equity = Total Debt/Debt-to-equity ratio = $590,400/0.24 = $2,460,000

Working capital = Current assets - Current abilities

Current assets = Working capital + Current abilities = $162,600 + $116,160 = $278,760

Basing accounting equation:

Total assets = Current assets + Long-term assets = Total liabilities + Total Equity = $590,400 + $2,460,000 = $3,050,400

Long-term assets = Total assets - Current assets = $3,050,400 - $278,760 = $2,771,640

7 0

4 years ago

If a store sells a good at the market price, even though the government authorities have set the minimum price that can be charg

Alexandra [31]

Answer:

The correct answer would be option D, Legal Market for a market price that is lower.

Explanation:

If there is a store which sells the goods at the market price even though the government authorities have set the minimum price that can be charged, it means store is selling the product at a price which is higher than the minimum price set by the government, but it doesn't mean that the store owner is doing any illegal trading. This is because the government has set the lower price limit but that ceiling price is non binding. It is not necessary for the market sellers to sell at the price given by government. So they are operating in a legal market for a market price that is lower.

4 0

3 years ago

Telemarketers please help me with this question:

vazorg [7]

Answer:

your being reported

Explanation:

7 0

3 years ago