1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Basile [38]
3 years ago
12

For a film studio to make a profit, it has to be able to earn enough to offset expensive initial costs. a large portion of the p

rofits comes from the licensing or sale of screening copies for movie theaters or dvds for home conception. what concept can help explain why it is significantly cheaper to reproduce films after they are already made?
Business
1 answer:
slega [8]3 years ago
3 0
The appropriate response is economies of scale. It alludes to the cost advantage that emerges with an expanded yield of an item. Economies of scale can emerge in a few territories inside a huge endeavor. While the advantages of this idea in ranges, for example, generation and obtaining are self-evident, economies of scale can likewise affect zones like fund.
You might be interested in
1/1/2019 sally miller purchased $500 of merchandise on account; the cost of the item is $310
timofeeve [1]

<u>Solution and Explanation:</u>

date                           Particulars                                  Debit                    Credit

1st january, 2019    Account receivable                  500

                                Sales revenue                                                            500

                    (To record sales on account)

                        Cost of goods sold                              310

                       Merchandise inventory                                                      310

             (To record cost of goods sold)

31st january, 2019       Notes receivable                     500

                                 Accounts receivable                                                 500

(To record notes receivable for the 60 days at the rate of 6 percent)

1st April, 2019 Allowances for Doubtfull accounts          500

                        Notes receivable                                                                500

(In order to write off Sally Millers account, no interest revenue is to be recognised)

2nd May, 2019           Notes receivable                             500

                              Allowances for doubtful debts                                     500

( in order to record re-instatement)

2nd May, 2019             Cash                                                  507.50

                                  Notes receivable                                                        500

                               Interest revenue                                                             7.5

( In order to record the payment received)

3 0
3 years ago
Mercury Inc. purchased equipment in 2019 at a cost of $400,000. The equipment was expected to produce 700,000 units over the nex
Wittaler [7]

Answer:

See explanation section

Explanation:

We know,

Annual depreciation rate under Units-of-production = Depreciable amount/Overall (expected) production

Given,

Purchase value = $400,000

Residual value = $50,000

Expected production = 700,000 units

Depreciable Amount = $(400,000 - 50,000) = $350,000

Annual depreciation rate = $350,000/700,000

Depreciation rate = $0.50

Thrrefore, Accumulated depreciation from 2019 to 2021 = (100,000 + 160,000 + 80,000)*$0.50

= $170,000

We know, Book value of asset = Cost price - Accumulated depreciation

Book value = $400,000 - $170,000 = $230,000

Again, Loss on sale of equipment = Book value - Sales price

Loss on sale of equipment = $230,000 - $210,000

Loss on sale of equipment = $20,000

The journal entry to record the sale =

Debit Cash $210,000

Debit Accumulated Depreciation $170,000

Debit Loss on sale $20,000

Credit Equipment $400,000

7 0
3 years ago
Read 2 more answers
A stationery company plans to launch a new type of indelible ink pen. Advertising for the new product will be heavy and will cos
stich3 [128]

Answer:

The advertising spend would reduce income taxes by $2.8 million

Explanation:

The advertising expense since it is allowable expense from profits made in the year would reduce income taxes next year by  $2.8 million ($8 million *35%)

This means that because of its tax deductibility,it would make a business sense to incur the advertising cost of $8 million coupled with the fact the it has the potential to increase sales revenue over and above the current level of $280 million

3 0
3 years ago
Spotnick Enterprises is exploring options for entering into international markets. The key stakeholders have expressed that the
Rufina [12.5K]

Sputnik Enterprises is exploring options for entering into international markets. The key stakeholders have expressed that the primary concern is that Spotnick maintains the maximum amount of control possible to protect its proprietary technology. A greenfield venture entry would be best for Spotnick.

<h3>What Is a Green-Field Investment?</h3>

A green-field (also "greenfield") investment is a type of foreign direct investment (FDI) in which a parent company creates a subsidiary in a different country, building its operations from the ground up. The strategy involves building everything the company needs from the ground (or green field) up. This can include all facets of the business, from plant construction to marketing and distribution channels.

To learn more about Green-Field Investment visit the link

brainly.com/question/15104691

#SPJ4

3 0
2 years ago
What happens to the equilibrium price when supplies goes down
wariber [46]
An equilibrium price is where the quantity of goods supplied is equal to the quantity of goods demanded. So if supplies of the said product goes down the equilibrium will go down and the price and demand will be higher.
3 0
3 years ago
Other questions:
  • Drag the tiles to the correct boxes to complete the pairs. Match the scenarios with terms related to financial aid. Entrance cou
    9·1 answer
  • Executives at Southwestern Construction have noticed that the company's construction team in the Phoenix office is more efficien
    11·1 answer
  • Yakov lives in San Diego and runs a business that sells boats. In an average year, he receives $704,000 from selling boats. Of t
    14·1 answer
  • On September 1, 2021, Middleton Corp. lends cash and accepts a $4,000 note receivable that offers 10% interest and is due in six
    14·2 answers
  • Suppose that technological advancements stimulate $20 billion in additional investment spending. If the MPC = 0.6, how much will
    9·1 answer
  • Cover Board Inc. is a company that designs and prints advertisements on coffee sleeves used on cups sold in coffee shops. To fin
    12·2 answers
  • Assume that the market is perfectly competitive. If the cost function for John's Shoe Repair is �(�) = 100 + 10� − �) + 3 4 �4,
    10·1 answer
  • You are a finance intern at Chambers and Sons and they have asked you to help estimate the company's cost of common equity. You
    6·1 answer
  • Use a piece of scrap paper to prepare a cost of Goods Manufactured from the following numbers: Beginning Direct Raw Materials -$
    6·1 answer
  • What is Social responsibilities in business
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!