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statuscvo [17]
2 years ago
14

Which of the following statements is correct?

Business
1 answer:
artcher [175]2 years ago
3 0

Answer: It is reasonable to assume that a profit-maximizing firm will never operate in the inelastic portion of its demand curve.

Explanation:

It should be noted that a firm that profit maximizing will not operate in the inelastic portion of its demand curve because at that point, the firm isn't maximizing profit.

When there's an inelastic demand, an increase in price will bring about a less than proportionate reduction in the quantity of the goods that's demanded. In such case, if the firm operates at the inelastic portion of its demand curve, when it increases price, this will lead to a reduction in income and profit will not be maximize.

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Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $10.50; direct
Sav [38]

Answer:

$8.50

Explanation:

Computation for the net incremental cost or savings of buying the component.

Using this formula

Incremental cost = Purchase price -Cost savings

Let plug in the formula

$37 - ($10.50+ $14.50 + 3.50)

Incremental cost=$37-$28.5

Incremental cost= $8.50

Therefore the net incremental cost or savings of buying the component is $8.50

3 0
3 years ago
A personal selling approach that involves helping customers reach their strategic goals by using the products, services and expe
jolli1 [7]

Answer:

correct answer is Consultative Selling

Explanation:

personal selling approach is Consultative Selling  

we know it is that sales approach where priority relationship and open dialogue to the identify and provide them customer need and a solution

and that is focused on the customer rather than products sold and it help for a salesperson for the understanding challenge which is faced by the customer  

so correct answer is Consultative Selling

8 0
3 years ago
A competitive car wash currently hires 4 workers, who together can wash 80 cars per day. The market price of car washes is $5 pe
Bezzdna [24]

Answer:

b) 100 cars per day.

Explanation:

With the information above, we can conclude that each worker washes 20 cars per day, and earns a wage of $60 per day.

So the total labor costs per day is $60 wage per worker  X 4 workers = $240

The total sales revenue per day is: 80 cars washed per day X $5 per wash = $400.

So, we can see that with four workers, the firm has a good profit of = $400 - $240 = $160.

If the firm hired a fifth worker, labor costs would increase to $320 ($240 + $60), the amount of cars washed would increase to 100, and the sales revenue would increase to $500 (100 x $5).

So, profits would increase to $180 ($500 - $320) if the firm hired a fifth worker.

However, productivity should still be stable, so a worker who washed less than 20 cars per day should not be hired, this is why the A option is wrong.

8 0
3 years ago
Carlton Soup Company makes crackers, bread, and soup. Presented here are the items listed on a simplified version of its recent
Mademuasel [1]

Answer:

Carlton Soup Company

Classified Balance Sheet as of July 31 (dollars in millions)

Assets

Current Assets:

Cash and cash equivalents                 $300

Accounts receivable                              595

Inventories                                             958

Other current assets                               70

Total current assets                         $1,923

Non-current assets:

Property, plant, and equipment, net 2,397

Other assets                                          132

Intangible assets                               3,023

Total non-current assets                $5,552

Total assets                                     $7,475

Liabilities and Equity

Current Liabilities:

Accounts payable                             $ 668

Accrued expenses                               599

Other current debt                            1,080

Total current liabilities                    $2,347

Other noncurrent liabilities             3,806

Total liabilities                                $6,153

Equity:

Common stock, $0.0375 par value  386

Retained earnings                             936

Total equity                                   $1,322

Total liabilities and equity            $7,475

Explanation:

a) Data and Calculations:

Cash and cash equivalents                  300

Accounts receivable                             595

Inventories                                            958

Other current assets                              70

Property, plant, and equipment, net 2,397

Other assets                                         132

Intangible assets                               3,023

Accounts payable                            $ 668

Accrued expenses                             599

Other current debt                           1,080

Other noncurrent liabilities             3,806

Common stock, $0.0375 par value  386

Retained earnings                             936

4 0
2 years ago
Leahy Corp. sells $300,000 of bonds to private investors. The bonds are due in five years, have a 6% coupon rate, and interest i
emmasim [6.3K]

Answer:

c. $326,948

Explanation:

we must determine the market price of the bonds:

market price = PV of face value + PV of coupons

  • PV of face value = $300,000 / (1 + 2%)¹⁰ = $246,104.49
  • PV of coupons = $9,000 (coupons) x 8.9826 (PV annuity factor 2%, 10 periods) =   $80,843.40

total market price = $326,947.89 ≈ $326,948

since the market rate is lower than the coupon rate, the bonds should be sold at a premium.

3 0
3 years ago
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