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2 years ago

What factors under the control of owners and managers make a firm successful and allow it to earn economic profits?

Business

1 answer:

mafiozo [28]2 years ago

8 0

Answer: E. The firm's ability to differentiate its product

Explanation:

The factor under the control of owners and managers that make a firm successful and allow it to earn economic profits is the firm's ability to differentiate its product.

Product Differentiation has to do with making a product unique from that of its rivals so that it'll be attractive to the customers and the target market. This will slow be vital for the company to produce at a average cost that is lower than that of its competing firms. This will help the company to have a competitive edge over others.

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Camper's Edge Factory produces two products: canopies and tents. The total factory overhead is budgeted at $750,000 for the year

Pavel [41]

Answer:

Camper's Edge Factory

Departments Cutting Sewing

a. The total number of budgeted

direct labor hours for the year 60,000 70,000

b. Products Canopy Tent

Factory overhead per unit $17.50 $40

Explanation:

a) Data and Calculations:

Total budgeted factory overhead = $750,000

Canopy Tent Total

Direct labor hours

Cutting 2 1 3

Sewing 1 6 7

Total direct labor hours 3 7

Budgeted production units 20,000 10,000

Departments Cutting Sewing

Budgeted factory overhead $350,000 $400,000

Direct labor hours:

Canopy 40,000 (20,000 * 2) 10,000 (10,000 * 1)

Tent 20,000 (20,000 * 1) 60,000 (10,000 * 6)

Total direct labor hours 60,000 70,000

Overhead allocation rates $5.833 $5.714

($350,000/60,000) ($400,000/70,000)

Overhead per unit $17.50 ($5.833 * 3) $40 ($5.714 * 7)

5 0

2 years ago

Hodor borrowed $1000. The bank charges him 5% interest per year. At the end of year, he paid $50 in interest. There was 2% incre

dem82 [27]

Answer:

Explanation:

nominal interest rate = 5%

real interest rate = nominal interest rate - increase in GDP deflator (inflation rate) = 5% - 2% = 3%

The nominal interest rate is the interest rate earned or charged without considering the effects of inflation. The real interest rate adjusts the nominal interest rate against the year's inflation rate.

5 0

3 years ago

The management of California Corporation is considering the purchase of a new machine costing $400,000. The company's desired ra

Julli [10]

Answer:

c. 1.14

Explanation:

Year Cash Flow PV Factor 10% PV of Cash flows

($) ($)

Year 1 180,000 0.909 163,620

Year 2 120,000 0.826 99,120

Year 3 100,000 0.751 75,100

Year 4 90,000 0.683 61,470

Year 5 90,000 0.621 55,890

Total = 455,200

Initial cash outflow = $400,000

Cash inflow = $455,200

So, we can calculate the present value index by using following formula,

Present value index = Cash inflow ÷ Cash outflow

= $455,200 ÷ $400,000

= 1.14

4 0

2 years ago

Bellingham Company produces a product that requires 2.3 standard pounds per unit. The standard price is $3.45 per pound. 15,700

Andru [333]

Answer:

A) Price 7,080 U

B) Quantity 4,630.5 U

C) Total 11.710,5‬ U

Explanation:

DIRECT MATERIALS VARIANCES

$(standard\:cost-actual\:cost) \times actual \: quantity= DM \: price \: variance$

std cost $3.45

actual cost $3.65

quantity 35,400

difference $(0.20)

$(0.2) \times 35,400 = DM \: price \: variance$

price variance $(7,080.00)

$(standard\:quantity-actual\:quantity) \times standard \: cost = DM \: quantity \: variance$

std quantity 36110.00

actual quantity 35400.00

std cost $3.45

difference 710.00

$(710) \times 3.45 = DM \: quantity \: variance$

quantity variance $2,449.50

Total Variance: 2,449.5 - 7,080 = -4.630,5‬

8 0

3 years ago

A___ warranty promises replacement or refund for defective products.

alukav5142 [94]

Answer:

A written warranty promises replacement or refund for defective products.

5 0

2 years ago

What factors under the control of owners and managers make a firm successful and allow it to earn economic​ profits?

What factors under the control of owners and managers make a firm successful and allow it to earn economic profits?