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GaryK [48]
2 years ago
14

Describe how a free market works

Business
1 answer:
iren2701 [21]2 years ago
5 0
Companies sell goods and services at the highest price consumers are willing to pay while workers earn the highest wages companies are willing to pay for their services.
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Store supplies still available at fiscal year-end amount to $1,900. Expired insurance, an administrative expense, for the fiscal
DaniilM [7]

Answer:

Current Ratio = 1.67:1

Acid Test Ratio = 0.1:1

Gross Profit Margin = 66%

Explanation:

Cash.......1000

Merchandise inventory...12,500

Store supplies....5800

Prepaid Insurance...2400

Accounts Payable...................10,000

Sales..............................111950

Cost of Goods Sold....38,400

Store supplies still available at fiscal year-end amount to $1,900. Expired insurance, an administrative expense, for the fiscal year is $1,650. Depreciation expense on store equipment, a selling expense, is $1,600 for the fiscal year. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $11,000 of inventory is still available at fiscal year-end. 4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31, 2018.

Therefore Balance Store supplies = 5800-1900

Prepaid Insurance = 2400-1650

Balance Inventory = 11,000

Current Ratio = Current Assets/ Current liabilities

Current Ratio = (1000 cash + 11,000 inventory + 3,900 Store supplies + 750 prepaid insurance) / 10,000 Accounts payable = 16650/10000 = 1.67

Current Ratio = 1.67:1

Acid test Ratio = Current Asset - inventory / Current Liabilities

(16,650 -  11,000 inventory - 3,900 Store supplies - 750 Prepaid Insurance) /10,000 = 0.1

Acid Test Ratio = 0.1:1

Gross Profit Margin = Gross Profit / Sales x 100

Gross Profit = Sales - Cost of Goods Sold = 111,950 - 38400 = 73550

Therefore Gross profit Margin = 73550/111950 x 100 = 66%

Gross Profit Margin = 66%

3 0
3 years ago
Early personal computer users remember the cumbersome, user-unfriendly "DOS" system. When Apple introduced System 1 and Microsof
Aleksandr [31]

Early personal computer users remember the cumbersome, user-unfriendly "DOS" system. When Apple introduced System 1 and Microsoft introduced Windows, both of which were much easier to use, these new products diffused rapidly because of their relative advantage .

Option A

<u>Explanation: </u>

A product's dominance and market appeal over similar items. A competitive advantage is usually accomplished by giving better value to customers through either reducing prices or delivering added quality and service that justify higher costs.

That idea is based on consumer brand and product perceptions and does not necessarily reflect the actual characteristics of this product or service. The definition helps companies to consider that customers would choose to use this product or whether a rival would rather remain faithful to the already existing product.

8 0
3 years ago
I need this right now.
mamaluj [8]

Answer:

Sorry cant help with this

Explanation:

4 0
2 years ago
Read 2 more answers
A cosmetics company is planning the introduction and promotion of a new lipstick line. The marketing research department has fou
Mademuasel [1]

Answer:

p = 59.11 dollars

Explanation:

Given

Price:     p(x) = 8eˣ      (0 ≤ x ≤ 2)

Revenue;  R = x*p = 8xeˣ

p = ?  when R be at maximum

We can apply

dR/dx = d(x*p)/dx = 0

⇒  d(8xeˣ)/dx = 8*(1*eˣ + x*eˣ) = 0

⇒  eˣ*(1 + x) = 0    ⇒    x = - 1

as x = - 1 ∉ [0, 2]

then, we have

p(0) = 8e⁰ = 8

R = 0*8 = 0

If x = 1

p(1) = 8e¹ ≈ 21.74

R = 1*21.74 = 21.74

If x = 2

p(2) = 8e² ≈ 59.11

R = 2*59.11 = 118.22

Implies that, R(x) is maximum at x = 2.

   

Thus, the price that maximize the revenue of the company is 59.11 dollars.

7 0
3 years ago
A company’s retained earnings increased $375,000 last year and its assets increased $973,000. The company declared a $79,000 cas
Alex Ar [27]

Answer:

C. $454,000.

Explanation:

We know that

The ending balance of retained earnings = Opening balance of retained earnings + net income - dividend paid

$375,000 = $0 + net income - $79,000

So, the net income would be

= $375,000 + $79,000

= $454,000

The ending balance of retained earnings - Opening balance of retained earnings is also known as increase in retained earning

6 0
3 years ago
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