Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
The correct answer is d. lowering price.
Explanation:
Sustainable competitive advantages are company those abilities and traits that are difficult to duplicate or exceed; and provide a superior or favorable long term position over competitors.
Lowering price is good stratergy to compete with new competitors comming in the industry. However in long run you have to focus on building processes that generate value for customers and both internal and external stake holders.
Answer: $5,150
Explanation:using the information given above,
For every $1 contributed by the employee, employer adds 50cent.
Employer contribution ends after employee contributes $2500 to the 401(k) plan.
Last year:
Ian's weekly contribution = $75
Number of weeks in a year = 52
Ian's total contribution ($75 × 52) = $3,900
Ian's Employer's total contribution:
$0.5 × $2500 = $1,250
Therefore total contribution last year :
$3900 + $1250 = $5,150
Answer:
Given:
12% bonds have a face value of $35,000,000
Bonds sold for $37,702,483 based on the market interest rate of 10%.
∴
The interest expense on July 1 can be computed as
Interest expense = Bonds sold × Effective market interest rate (
= 5%)
= $37,702,483 × .05 (1/2 of the effective interest rate)
= $1,885,124
⇒ The interest expense on July 1 is $1,885,124
Answer: Accounting profits ignore implicit costs; economic profits consider them.
Explanation: In simple words, implicit cost refers to the cost of choosing the best alternative and loosing the profit that one could have earned by choosing the second best alternative.
Accounting profit is the revenue that one has left with after compensating for explicit cost but economic cost also takes into consideration the implicit one.
