<span>Bailey has a lifestyle business. A lifestyle business is, simply put, a business that is run by someone with the main goal of simply sustaining a certain income and nothing more. It's main function is to allow the business owner to enjoy a particular lifestyle, in this case, for Bailey to spend more time with his family.</span>
Answer:
price equals average total cost.
Explanation:
Normal profit exists basically when economic profit = $0. Economic profit is not the same as accounting profit. Accounting profit just considers revenues - actual expenses. While economic profits considers accounting profit - implicit or opportunity costs. Opportunity costs are the extra costs or benefits lost from choosing one activity or investment over another alternative.
A company will maximize its accounting profits when economic profit = $0. This will happen when marginal revenue = marginal costs. All companies should try to sell at this level of output and price, but since the monopoly is being regulated, the price will probably be set considering total costs, not marginal costs.
In the attached graph you can find the point that maximizes profit at (Q,P), but the marginal cost then increases more than total costs. That is why regulators will probably use the average total cost as reference for setting the output for a monopoly.
<span>The Fair Debt Collection Practices Act</span>
Answer:
The correct answer is option (A).
Explanation:
According to the scenario, the computation for the given data are as follows:
Operating cash flow = Sales - Cost of Goods Sold - Tax
Where, Tax = Sales - Cost of Goods Sold - Depreciation - Interest Expense × Rate of Tax
So, Tax = $30,774 - $21,956 - $3,596 - $604 × 23% = $1,062.14
By putting the value in the formula, we get
Operating Cash Flow = $30,774 - $21,956 - $1062.14
= $7,755.86
or = $7,756
Answer:
Incremental sales= $586,100
Explanation:
Giving the following information:
It is considering adding a lower-priced line of handbags that sell for $79 each. The firm estimates it can sell 21,000 of the lower-priced handbags but expects to sell 7,200 less of the higher-priced handbags by doing so.
We need to consider not only the incremental sales of the lower-priced but also the decrease in the higher-priced handbags.
Low-priced= 21,000*79= $1,659,000
Canibalized sales= 7,200*149=(1,072,900)
Incremental sales= $586,100
