Answer:
$21,000
Explanation:
Economic profit = accounting profit - implicit cost
Accounting profit= total revenue - explicit cost
Explicit cost includes the amount expended in running the business. They include rent , salary and cost of raw materials
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives. Implicit cost includes salary lost due to opening the shop and interest that could have been earned on the savings
Total explicit cost = $80,000 + $40,000 + $15,000 = $135,000
Accounting profit = $200,000 - $135,000 = $65,000
Economic profit = $65,000 - ($40,000 + $4,000) = $21,000
Answer:
OPPORTUNITY COST OF CAPITAL
Explanation: Opportunity cost of capital can be described as the incremental return a company foregoes when ever it is embarking on any internal investments.
The rule tries to show that a firm should only embark on projects or investment that will guarantee a higher rate of return after consideration of all the opportunity costs attached to the capital investment.
If the investment is a marketable security if the opportunity costs of capital is less than the expected rate of return,the investment is considering as a wrong choice.
Answer:
D.....................................
Answer: Poverty
Explanation:
Poverty is the lack of resources needed to meet an individual's basic needs, such as the need for; food,water, clothing and shelter. A person is said to be poor if the person can't cater for his basic needs.
Answer:
1. False
2. False
3. d. centralizing its decision making to better control its total quality management program
4. a.
5. True
Explanation:
1. Remember, a skimming strategy does the opposite–where a company chooses the highest possible price not the lowest price for their product when entering the market.
2. Indeed, this has impacted on production techniques in recent years. For example, from labour intensive car factories in the past we now have fully automated car factories that require very few workforce.
3. Remember, centralization results when there are fewer people in the line of authority. Therefore, if Brights Electronics decision to reorganize and significantly trim its middle management would result in centralized decision making and a better control its total quality management program.
4. Note that the promotional mix involves target based marketing, therefore each target market may have unique characteristics. And to attract each target market would involve establishing a promotional strategy that can reach multiple targets rather than developing a separate promotion mix for each target group.
5. An inverted organization is one that has a reversal from the normal line of authority found in most organization. Instead of top to bottom it now bottom to top. This implies that the manager who normally would play major role in deciding strategies to be taken doesn't, but the bottom line employees performs that responsibility. Thus, School Days Center can be rightly called an inverted organization.
