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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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Jazz Corporation owns 50% of the Williams Corp. Stock. Williams distributed a $10,000 dividend to Jazz Corporation. Jazz Corp.'s

Elden [556K]

Answer:

$6,500

Explanation:

Calculation for the amount of Jazz's dividends received deduction on the dividend it received from Williams Corp

Based on the information given we were told that the Jazz's Corporation owns part of Williams Corp. stock which is 50% in which Williams Corp. stock distributed the amount of $10,000 dividend to Jazz Corporation which means that Jazz Corporation share in Williams stock is higher than 20% and as well lower than 80% based on this Jazz Corp.'s will be entitled to dividend received deduction of 65% calculated as:

Dividends received deduction =$10,000 × 65%

Dividends received deduction=$6,500

Therefore the amount of Jazz's dividends received deduction on the dividend it received from Williams Corp will be $6,500

7 0

3 years ago

The Lunch Counter is expanding and expects operating cash flows of $32,500 a year for seven years as a result. This expansion re

storchak [24]

Answer:

$109,688.89

Explanation:

According to the scenario, computation of given data are as follows,

Formula for Net present value are as follows,

NPV = -Investment in fixed asset - Net working Capital + Operating cashflow × ( 1 - $(1+r)^{-n}$ ) ÷ r + Net working capital × $(1+r)^{-n}$

Where, r = rate of return

n = number of years

By putting the value, we get

NPV = -28,000 - 2,800 + 32,500 × ( 1 - $(1+0.14)^{-7}$ ) ÷ 0.14 + 2,800 × $(1+0.14)^{-7}$

By solving the above equation, we get

NPV = $109,688.89

8 0

3 years ago

Suppose monetary neutrality holds and velocity is constant. A 5 percent increase in the money supply increases the price level b

Alex73 [517]

Answer: Increases the price level by 5 percent

Explanation:

Monetary Neutrality is a theory in Economics that posits that when there is a change in money supply in an economy, the only variables affected are the nominal ones like price level and wages and Real variables like GDP and employment are not affected.

It holds that when there is an increase in money supply, there is an equivalent increase in Price level as well because the value of money has fallen by the rate of the monetary increase. The Price level rising at the same rate is to compensate.

A 5 percent increase in the money supply will therefore increase the price level by 5 percent.

4 0

3 years ago

You are trying to decide whether to take a vacation. Most of the costs of the vacation (airfare, hotel, and forgone wages) are m

alina1380 [7]

Answer:

Explanation:

The comparison of psychological benefits to actual tangible costs depends on the individual in question. If the individual is constantly stressed to the point which the stress is affecting his/her health, work performance, mood, behavior around family, etc. then the tangible costs of going on vacation may be worth it. This is because a vacation would provide a moment of relaxation which would relieve all of that individual's stress and in doing so improve the individual's work performance, health, and overall quality of life. Therefore, the comparison between physical benefits to costs is always going to be a personal opinion.

5 0

3 years ago

Choco Chocolata is a cookie company in Juarez, Mexico that produces and sells American-style chocolate chip cookies with extreme

lyudmila [28]

Answer:

(1) The total amount of product costs is $79,430.

(2) The total amount of period costs is $37,300.

Explanation:

Note: There are two requirements in this question as follows:

(1) What is the total amount of product costs?

(2) What is the total amount of period costs?

These two are answered as follows:

(1) What is the total amount of product costs?

Product cost can be described as the expenses that are incurred in order to produce a product. These types of expenses are charged to cost of goods sold and include direct materials, direct labor, factory overhead, and consumable production supplies.

Therefore, the total amount of product costs of Choco Chocolata can be calculated as follows:

Choco Chocolata

Computation of Total Product Costs

Details Amount ($)

Utilities for the bakery 2,100

Paper used in packaging product 180

Salaries and wages in the bakery 23,500

Cookie ingredients 43,500

Bakery labor fringe benefits 1,300

Bakery equipment maintenance 800

Depreciation of bakery plant and equipment 2,200

Uniforms for bakers 750

Insurance for the bakery 900

Boxes, bags, and cups used in the bakery 1,100

Overtime premiums 2,600

Idle Time 500

Total 79,430

Therefore, the total amount of product costs is $79,430.

(2) What is the total amount of period costs?

Period costs are costs that are related to passage of time but cannot not be charged to the cost of goods sold.

Therefore, the total amount of period costs of Choco Chocolata can be calculated as follows:

Choco Chocolata

Computation of Total Period Costs

Details Amount ($)

Administrative costs 2,300

Rent for administration offices 18,500

Advertising 3,500

Office Manager's salary 13,000

Total  37,300 

Therefore, the total amount of period costs is $37,300.

8 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?