All categories

3 years ago

Question 6 of 10

Business

1 answer:

AlexFokin [52]3 years ago

3 0

Answer:

C. A price reduction that a producer gives to resellers to encourage

them to promote products

Explanation:

bcuz that's what advertising allowance is

You might be interested in

Hardware is adding a new product line that will require an investment of $ 1 comma 450 comma 000. Managers estimate that this in

ozzi

Answer:

6.83%

Explanation:

The computation of the accounting rate of return is shown below:

As we know that

Average accounting rate of return = Average annual operating income ÷ Initial Investment

where,

Average annual operating income is

Year 1 net cash inflow $320,000

Year 2 net cash inflow $280,000

Years 3-10 ($230,000 × 8) $1,840,000

Total net cash flows $2,440,000

Less: Total depreciation ($1,450,000)

$990,000

Divided it by years of life ÷ 10 years

Average annual operating income $99,000

So,

Average accounting rate of return is

= $99,000 ÷ $1,450,000

= 6.83%

6 0

3 years ago

In 2018, Gathering Company repurchased its own stock at a cost of $ 48,000. During the year, the company purchased land with c

Bezzdna [24]

Answer:

$327,000

Explanation:

Stocks owned by the Gathering Company after repurchasing = $48,000

Cash paid for the purchase of land = $124,000

Amount of issued bonds payable = $375,000

Now,

Net cash provided by financing activities for the year would have been

= Amount of issued bonds payable - Stocks owned by the Gathering Company

= $375,000 - $48,000

= $327,000

7 0

3 years ago

Explain how a Target price for farm crops is an example of a price floor.

12345 [234]

Answer: A target price for farm crops is an example of price floor because it’s fixed ahead of harvests with the interest of farmers in mind.

Explanation: A quick definition of both concepts would be of help. A price floor is usually fixed by government legislation and it ensures that the price of a commodity or service does not fall below a certain minimum. In the case of farm crops, a floor price makes sure that the farmers are guaranteed a level of profit in case there is poor harvest for any reason whatsoever. The price floor must be fixed above the equilibrium price for this to be effective.

A target price is an expectation of the future price of commodities or services, and hence prices are fixed ahead of the harvest in the case of farm crops. This is so because as explained earlier, future conditions might change and become unfavorable, therefore making the current market price unprofitable for farmers. If for example, a sack of potatoes currently sells for $30, the government may fix the price floor ahead of the harvest season at $45 per sack. This implies that after harvesting farmers can still sell at $30. However if the harvest turns out to be bad perhaps due to natural disasters, pests or fungal attacks, etc, then the farmers can go ahead and sell at $45 and possibly higher. No farmer is allowed to sell below $45 (since that is the ‘floor’). That way, farmers would still have some profit guaranteed and would be encouraged to remain in the farming business.

8 0

3 years ago

Measures that help to solve economic problems are called

Romashka-Z-Leto [24]

Economic stimulus Answer:

Explanation:

8 0

3 years ago

Suppose a flood changes the production capacity in a country. How would you represent this situation with a production possibili

german

Explanation:

The flood will lead to the destruction of the resources in the country.This will result in the shifting of the PPC curve leftward in the economy.

Earlier PPC is represented by PP curve.After the floods and destruction of resources,the curve shifts to P1P1.It is due to the availability of the number of possible combinations which decreases with the destruction of resources.

6 0

3 years ago