Answer:
Enrique
a) Accounting profit = $114
b) Economic profit (loss) = ($136)
Explanation:
a) Data and Calculations:
Monthly Rent = $1,600
Cost price of flowers = $2 per bunch
Selling price of flowers = $3 per bunch
Operations are for 7 days (8 hours daily) = 56 hours
Quantity of flowers sold per day = 100 bunches
Quantity of flowers sold per week = 700 (100 * 7)
Employee hours = 5 * 3 + 2 * 8 = 31 hours
Hours worked by Enrique = 25 (56 - 31)
Employee wages = $186 ($6 * 31)
Opportunity cost: Enrique = 25 * $10 = $250 per week
Accounting profit:
Sales revenue ($3 * 700) = $2,100
Cost of sales ($2 * 700) = 1,400
Gross profit $700
Expenses:
Rent ($1,600/4) = 400
Employee wages = 186 586
Accounting profit = $114
Economic profit:
Accounting profit $114
Opportunity cost 250
Economic loss = $136
<span>Fixed budget, in a fixed budgetary control
system, the master budget is based on a single prediction for sales volume or other activity level. The budgeted amount for each cost
essentially assumes that a specific amount of sales will occur. A fixed budget, also called a static budget, is<span> based on a single predicted amount of
sales or other measure of activity.</span></span>
Answer:
B. Price Decreases & Quantity Increases
Explanation:
Since natural gas provides heat at a much lower cost, most households will begin to use natural gas and stop buying heating oil because natural gas can serve as a substitute to heating oil at a lower cost. This will result in decrease in price of the heating oil to encourage households to buy, and since more households prefer to go for natural gas, the quantity of the heating oil will increase.
Answer:
C
Explanation:
Technical analysis is a trading tool used to evaluate investment and trading opportunities by gathering and analyzing trends from trading activities , thereby it is able to predict future prices of stocks based on past trends.
The analyst does not rely on financial ratios in the analysis of stocks as financial ratio is mostly used by fundamental analyst in financial performance evaluation and not by technical analysts in predicting changes in stock movements
Answer:
The safeguards rule
Explanation:
The safeguards rule states that that companies must have a written document and security framework that protects there customer's information.
The safeguards rule is a part of Gramm-Leach-Bliley act also known as the Financial Services Mordenization Act of 1999. It is aimed at enhancing competition in the financial sector. One company was now allowed to be involved in different aspects of financial services: commercial banking, investment banking, securities, insurance and so on.