Answer:
<u>Contribution Margin Income Statement for the year end MM DD, YY</u>
$ $
Sales revenue ($100 per unit) 66,000
Less: Variable Cost
Less cost of goods sold ($56 per unit) 36,960
Commissions expense ($6 per unit) 3,960
Shipping expense ($3 per unit) <u> 1,980 </u>
<u> 42,900 </u>
Contribution Margin 23,100
Less: Fixed Cost
Salaries expense 7,900
Advertising expense <u> 5,800 </u>
<u> 13,700 </u>
Net Income <u> 9,400</u>
Predatory Pricing is the practice whereby a foreign producer intentionally sells its products in the United States for less than the cost of production to undermine the competition and take control of the market.
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Explanation:</u></h3>
hen there is a situation in the market whereby the products are sold at a cost very low than the cost of other suppliers refers to the predatory pricing. When predatory pricing is practiced then the suppliers with lower price will alone survive in the market making all the other suppliers to forcefully leave the market.
This kind of act is illegal. This is because predatory pricing will eradicate the competition. The main aim of this type of pricing is to eliminate the small business from the market. In the given scenario, a foreign producer is selling its products intentionally at lower price in U.S for the lower cost than the cost of production and takes the market to its control which is an example of Predatory Pricing.
Answer:
A. Profit-seeking multinational companies shift their production from countries with strong environmental standards to countries with weak standards, thus reducing their costs and increasing their profits.
D. self-sufficiency argument.
Explanation:
In the case when there is a race to the bottom scenario so it would be described that the multinational companies that are profit seeking is shifting their production from that countries who have the strong environmental standards to the weak standard countries so that the order would be decreased due to this the profit would increase
In the other case, when the nation is not too much depend on other countries for supplies so this case we called as self-sufficiency argument as they managed themselves rather depending on another
Answer:
Option A is the correct approach.
Explanation:
- This is indeed a connection to compulsory tax and government expense stabilizers which weren't at the discretion including its government. Throughout the event of a recession, expenses are cut, rising discretionary income to something like the extent that the economic depression is pacified.
- Unemployment insurance, as well as other social programs, are consequently expanded without the clear intervention of the government
The other options offered are also not relevant to the scenario presented. So, the solution above is the right one.
