When a firm charges a price for its goods and services, if this price is less than the cost of production, they will suffer losses.
The profit that a company makes is calculated as:
<em>= Selling price - Cost of production </em>
If the selling price is less than the cost of production, the profit will be negative. A negative profit is the same as losses. This means that if a company charges lower than this cost of production, they will incur losses.
In conclusion, companies charge above their cost of production so as not to incur losses.
<em>Find out more at brainly.com/question/15235684. </em>
"Garrett has just purchased a beer distributorship....". According to the Framework for Ethical Decision Making, the first thing Garrett should do is to identify issues that need to be addressed. This is further explained below.
<h3>What is a distributorship?</h3>
Generally, distributorship is simply defined as in a certain region, a license issued by a manufacturer or business to sell its products at wholesale
In conclusion, Garrett just acquired a beer distributorship..... The first step Garrett should do according to the Framework for Ethical Decision Making is to identify the concerns that need to be resolved.
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If three more restaurants opened in a small town where only four restaurants were open for business originally then The Restaurants would form a cartel in the town.
<u>Explanation:</u>
In such a situation the restaurant would preferably form a cartel. A Cartel is an association of various firms. This association is formed to keep the prices at a higher level. When a cartel is formed it restricts competition.
Cartel is formed with the mutual understanding of all the firms. The existence of cartels negatively affects the consumers, as they have to pay higher prices and cannot afford to bargain as the price will be determined by all the concerns collectively. It might result in limited supply and more demand which will result in price to increase.
Answer:
$ 2.00
Explanation:
Firstly, we need to calculate average number of share outstanding during 2018:
Average share outstanding during 2018 = (17,400 + 15,000)/2 = 16,200
Next, we neet to calculate net income attributable to common shareholders of JAX Corporation:
Net income attributable to common shareholders of JAX Corporation = JAX Net income - Preferref dividend = 43,700 - 11,300 = 32,400.
Putting all the numbers together, JAX's earning per share is calculated as below:
JAX's earning per share = Net income to common shareholders/Average number of share outstandings = 32,400/16,200 = 2.00
So, JAX's earning per share is $ 2.00
