Answer:
Option (A) is correct.
Explanation:
Given that,
Implicit costs per week = $200,000
Average explicit cost per banana = $0.25 per banana
Per week bananas sold = 1 million
Explicit cost = Average explicit cost per banana × No. of banana sold
= $0.25 × 1,000,000
= $250,000
Total revenue = No. of banana sold × Selling price of each banana
= 1,000,000 × $0.50
= $500,000
Accounting profit = Total revenue - Explicit cost
= $500,000 - $250,000
= $250,000
Economic profit:
= Total revenue - Explicit cost - Implicit costs
= $500,000 - $250,000 - $200,000
= $50,000
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
Achieved. The ROI currently is 13.33% So the prohect earning a ROI of 12% was accomplished
Explanation:
Return on Investment will be Income/ Investment Capital
Which in this case is defined as total assets.
So it would be<em> Income / Total Assets</em>
The last is a given figure: 150,000
Now <u>let's first find out the income:</u>
180,000 revenues - 160,000 expenses = 20,000 net income
Finally <em>calculate the </em><em>ROI</em> 20,000/ 150,000 = 13.33%
Answer:
B) brand alliance
Explanation:
Firms with a limited reputation sometimes form a brand alliance with a reputable firm so as to gain from the quality associated with the known brand