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Talja [164]
2 years ago
10

Edison's Lights makes light bulbs. The company is currently producing well below its full capacity. Lamp Land has approached Edi

son's Lights with an offer to buy 20,000 light bulbs at $0.75 each. Edison;s Lights sells its light bulbs wholesale for $0.85 each; the average cost per unit is $0.83, of which $0.12 is fixed costs. If Edison's Lights were to accept Lamp Land's offer, what would be the increase in Edison's Lights' operating profits?
Business
1 answer:
Korvikt [17]2 years ago
5 0

Answer:

the increase in Edison's Lights' operating profits would be  $400

Explanation:

<u>Analysis of the effects of Accepting Lamp Land's offer</u>

Sales (20,000 x $0.75)                                   $15,000

Less Incremental Costs :

Variable Cost (20,000 x $0.73)                     ($14,600)

Operating Profit                                                    $400

thus

If Edison's Lights were to accept Lamp Land's offer, the increase in Edison's Lights' operating profits would be  $400

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Answer:

ABC company

Explanation:

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The primary market is the market in which the initial public offer is taking place that means the new security is first offered to the public by the company whereas, in the secondary market, the broker or investor is involved while offering the securities.  

In the given situation, the ABC company itself is involved while selling the shares of ABC stock in the primary market

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3 years ago
A credit card company advertises an APR of 15.3%, compounded daily. What
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B. 16.53%

Explanation:

The effective interest rate is the real interest rate charged by a bank or any other type of lender on a loan.

the formula to calculate effective interest rate = r = (1 + i/n)ⁿ - 1

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r = [1 + (15.3%/365)³⁶⁵] -1 = 1.00419178³⁶⁵ - 1 = 1.165287621 - 1 = 0.165287621 ≈ 16.53%

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Fiat borrowed $80,000 on October 1, 2019. Fiat will not make any payments until October 1, 2021, and at that time, Fiat will pay
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A small Canadian firm that has developed some valuable new medical products using its unique biotechnology know-how is trying to
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Disadvantages

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Part b. Manufacture the products at home and set up a wholly owned subsidiary in Europe to handle marketing.

Advantages

  1. Having full control in manufacturing activities.
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  3. Having better regulator over human resources.
  4. The brand name will not be damaged since the marketing is controlled by the same company

Disadvantages

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Part c. Enter into a strategic alliance with a large European pharmaceutical firm. The product would be manufactured in Europe by the 50/50 joint venture and marketed by the European firm

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Disadvantages

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Question 5: Definitions and concepts
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2 years ago
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