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2 years ago

In a market economy, decisions about which goods are produced are based

Business

2 answers:

gayaneshka [121]2 years ago

8 0

Answer: what the local community has made for generations

notsponge [240]2 years ago

5 0

Answer:

A what businesses believe will generate the most profits.

Explanation:

In a market economy, the private sector controls the majority of the factors of production. The government or central authority does not interfere with economic activities in this type of economy. The private sector decides on the production and distribution of goods and services.

The private sector participates in economic activities to make profits. Demand and supply forces determine the type and quantities of goods to be produced. Traders will avail to the markets the goods and services that consumers are willing to buy.

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The following information was taken from the income statement and balance sheet of The Perryman Company for the years 2018 and 2

puteri [66]

Answer:

a. Net profit margin for 2019 = 35.93%

b. Asset turnover for 2019 = 0.29 times

c. Return on assets = 10.24%

Explanation:

Note: This question is not complete. The complete question is thereore provided before answering the question as follows:

The following information was taken from the income statement and balance sheet of The Perryman Company for the years 2018 and 2019:

2019 2018

Sales revenues $590,000 $574,000

Net income 212,000 184,000

Total assets 2,142,000 1,998,000

Total stockholders’ equity 712,000 690,000

Compute the following ratios for 2019:

Net profit margin

Asset turnover

Return on assets

The answers are now explained as follows:

a. Net profit margin for 2019

This can be calculated as follows:

Net profit margin for 2019 = Net income in 2019 / Sales revenues in 2019 = $212,000 / $590,000 = 0.3593, or 35.93%

b. Asset turnover for 2019

This can be calculated as follows:

Asset turnover for 2019 = Sales revenues / Average total assets = Sales revenues in 2019 / ((Total assets in 2019 + Total assets in 2018) / 2) = $590,000 / (($2,142,000 + $1,998,000) / 2) = 0.29 times

c. Return on assets for 2019

This can be calculated as follows:

Return on assets = Net income / Average total assets = Net income in 2019 / ((Total assets in 2019 + Total assets in 2018) / 2) = $212,000 / (($2,142,000 + $1,998,000) / 2) = 0.1024, or 10.24%

4 0

3 years ago

Bartoletti Fabrication Corporation has a standard cost system in which it applies manufacturing overhead to products on the basi

vazorg [7]

Answer:

Total of the variable overhead rate and fixed manufacturing overhead budget variances for the month = $9,096 Unfavorable

Explanation:

Actual variable overhead rate = $\frac{Actual variable overhead}{Actual Hours}$ = $\frac{66,170}{6,400} = 10.34$

Therefore variance with the budgeted standard variable overhead

= (Standard Overhead rate - Actual overhead rate) $\times$ Actual Hours

= ($9.70 - $10.34) $\times$ 6,400 = -$4,096

And Fixed Overhead variance = Standard Fixed Overhead - Actual Fixed Overhead = $69,000 - $74,000 = -$5,000

Total of the variable overhead rate and fixed manufacturing overhead budget variances for the month = -$4,096 + -$5,000 = -$9,096

Since the value of variance is negative it means the expense both variable and fixed are over absorbed, which means it is unfavorable.

Total of the variable overhead rate and fixed manufacturing overhead budget variances for the month = $9,096 Unfavorable

3 0

2 years ago

A portfolio manager has a large position in the preferred stock of XYZ Corporation. The manager is concerned that market interes

Ksivusya [100]

Answer:

To hedge the preferred stock position, the manager should: Buy tyx calls

Explanation:

When market interest rate rise preferred stock drop. To hedge using interest rate index option, <em>the contract must offer an offsetting profit during a period of rising interest rates. Therefore buy TYX calls. </em>These will continue to give ever increasing profit as market interest rate continue to rise. And it will offset the ever increasing loss that would be incurred on the XYZ preferred stock position as the market interest rate continues rising.

The hedge is that Any loss on preferred stock position would be offset by corresponding gain on the long interest rate index call position.

5 0

2 years ago

During the holiday season, Maria's Department Store works with a contracted employment agency to bring extra workers on board to

nekit [7.7K]

There could be a lot of choices that would fill in this blank:

seasonal workers

Temporary labor

seasonal labor strategy.

Is there a list of choices?

4 0

3 years ago

Read 2 more answers

When there is no room for growth within a company, an employee cannot __________. a. Be promoted to new positions horizontally b

Sholpan [36]

D. be promoted vertically to new positions

7 0

1 year ago