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3 years ago

How does the economic boom affect a business or your business?

Business

1 answer:

shepuryov [24]3 years ago

4 0

Answer:

The answer is easy and simple to understand.

First of all, it ill be generally good for your business, price levels of materials required and services will remain at a reasonable level so you can afford them.

Moreover, the cost of financing will be bearable and low. Since the interest rates are low, more money can be borrowed to expand your business venture.

Economic book means more employment opportunities, and as the supply of labor increases. the cost or the wage rate can remain at a reasonable and fair level for both the employers and employees.

The currency exchange rates will be stable and will not deviate heavily during the economic boom period, making importing and importing fairly easy for your business.

However, since the economy is rigorous and healthy, more entrepreneurs will enter the market and the competition will be sever.

Moreover, foreign investors and businesses with new technologies, products and practices may enter your market, making it a bit difficult for you.

Explanation:

You might be interested in

People are willing to pay a higher price if they believe that supplies are ______.

ratelena [41]

C. Limited

If you have a small amount of product/resources that means that it is rare, and therefore more valuable.

For example, in the U.S. economy, there is a limited amount of currency, and that is what makes the currency valuable.

Or the better example, in a game like Minecraft, the resource "diamond ore," is only worth value to the player because it is a Limited resource, and it does not spawn often.

Hope this helps!

4 0

3 years ago

Read 2 more answers

Inspection costs at one of Ratulowski Corporation's factories are listed below: Units Produced Inspection Costs April 922 $ 17,9

baherus [9]

Answer:

Fixed costs= $9,021.27

Explanation:

Giving the following information:

April 922 $ 17,912

May 983 $ 18,300

June 928 $ 17,965

July 912 $ 17,810

August 934 $ 17,994

September 919 $ 17,880

October 936 $ 18,032

November 876 $ 17,290

December 915 $ 17,838

To calculate the variable and fixed component, we need to use the following formulas:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (18,300 - 17,290) / (983 - 876)

Variable cost per unit= $9.4392

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 18,300 - (9.4392*983)

Fixed costs= $9,021.27

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 17,290 - (9.4392*876)

Fixed costs= $9,021.27

4 0

3 years ago

Walman Corp. manufactures products X, Y, and Z from a joint production process. Joint costs are allocated to products on the bas

rewona [7]

Answer:

We will only produce further product Y and Z

Explanation:

We should check the increase in sales revenue with the increase in cost to know if further process acheive a gain:

Product X

Increase in sales value:

348,000 - 340,000 = 8,000

Additional Cost: (38,000)

difference: (30,000) Non-profitable

Product Y

Increase in sales revenue:

185,000 - 150,000 = 35,000

additional cost: (30,000)

difference: 5,000 Profitable

Product Z

Increase in sales revenue:

147,000 - 110,000 = 37,000

additional cost: (22,000)

difference: 15,000 Profitable

3 0

3 years ago

Rory Company has a machine with a book value of $75,000 and a remaining five-year useful life. A new machine is available at a c

Alborosie

Answer: $7,500

Explanation:

In calculating the Incremental income we will add the amount of variable Manufacturing costs Rory Company will save as well as the income they will get from selling the old machine and then subtract the cost price of the new machine.

Starting off we will calculate the amount of savings they will make by using the new machine,

= $12,000 x 5 years

= $60,000

Calculating the Incremental income therefore we have,

= 60,000 + 60,000(from selling old machine) - 112,500 (cost of new machine)

= $7,500

The incremental income of buying the new machine is $7,500.

If you need any clarification do comment.

5 0

3 years ago

Which of the following is an example of a sunk cost?

coldgirl [10]

Answer:

The correct answer is option D.

Explanation:

Sunk costs can be defined as those costs which already been incurred and cannot be recovered anymore. These costs are excluded from business decision making.

It is can be referred to as a cost that is no longer relevant.

The $8 paid for a ticket, after the person starts watching the movie is a sunk cost as it cannot be recovered anymore.

Sunk costs are contrasted to relevant cost which is yet to be incurred in the future. Cost pf machinery, equipment, etc are examples of sunk cost.

3 0

3 years ago