A company that uses a strategy of selling its products to a distributor in another country would be using <u>exporting.</u>
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<h3><u>How Do Exports Work?</u></h3>
Exports are products and services made in one nation and offered to customers in another. Imports and exports together make up global trade.
Because they give people and businesses access to a larger market for their products, exports are crucial to modern economies. Fostering economic commerce, and boosting exports and imports for the advantage of all trading parties, is one of the primary goals of diplomacy and foreign policy between countries.
<u>Benefits of Exporting for Businesses</u>
There are numerous reasons why businesses export their goods and services. If the goods open up new markets or widen existing ones, exports can boost sales and profits and may even offer the chance to gain a sizeable portion of the worldwide market. Exporting businesses diversify their markets to reduce business risk.
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A company had net income of $40,000, net sales of $300,000, and average total assets of $200,000. The profit margin and total asset turnover ratio are 13.3% each. 1.5.
There are two methods that can be used to calculate return on assets. The first method is to divide the company's net income by its average total assets. The second method is to multiply the company's net profit margin by sales.
Return on assets is calculated by dividing a company's after-tax earnings by total assets. The balance sheet total corresponds to the company's total equity and liabilities. This value can be found on the company's balance sheet.
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Answer:
Josefina is not maximizing her profits since she is making a loss of $0.25.
Explanation:
The marginal revenue is the total amount of revenue received from selling an additional unit of product while the marginal cost is the total cost incurred for producing an additional unit of product. The marginal cost and revenue can be compared to determine if producing and selling an additional unit is profitable or will cause a loss.
The profit/loss can be expressed as;
P/L=R-C
where;
P=profit
L=loss
R=total marginal revenue
C=total marginal cost
In our case;
P/L=unknown
R=marginal revenue per unit×number of units=1.50×1=$1.50
C=marginal cost per unit×number of units=$1.75×1=$1.75
replacing;
P/L=1.50-1.75=-$0.25
Since the marginal cost is greater than the marginal revenue, we can conclude that Josefina is making a loss of $0.25
Answer:
See below
Explanation:
The cost of goods manufactured is computed as;
Beginning inventory
$25,300
Add ;
Raw materials purchases
$106,100
Cost of goods available for sale
$131,400
Less:
Ending inventory
$39,100
Cost of goods sold
$92,300
Add:
Beginning work in process
$24,100
Less:
Ending work in process
($26,600)
Cost of goods manufactured
$89,800
Answer:
$ 2 per unit on average
Explanation:
Calculation for what the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be:
First step is to calculate the Relevant cost of making
Relevant cost of making = 9 + 7 + 1 + ( 5 * 80 % ) Relevant cost of making= $ 21
Now let calculate the Financial advantage of buying
Financial advantage of buying = ( 21 - 19 )
Financial advantage of buying= $ 2 per unit on average
Therefore the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be:$ 2 per unit on average
