Answer:
$6,240
Explanation:
annual amount of depreciation expense for each of the remaining years would be $6,240.
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Answer:
a. Accounting profit for the business = $3,500
b. Economic loss = $1,000
c. The two friends can open the business and incur economic loss of $1,000 in the first year of operation. In subsequent years, the revenue may increase to generate better economic profit. This is the labor, risk, and reward of entrepreneurship.
d. If the two friends do not go ahead with the business because of the economic loss they suffer in the first year of operation, then they cannot be regarded as entrepreneurs. They are merely laborers who cannot assume any risk for greater rewards tomorrow.
Explanation:
Cost of business per month:
Operating expenses = $4,000
Lease of building = 2,000
Total expenses = $6,000
Revenue = $10,000
Accounting profit $4,000
Economic profit:
Revenue = $10,000
Total expenses = $6,000
Opportunity costs:
Lost salaries 4,500
Lost Interest 500
Total costs $11,000
Economic loss = $1,000
About 543,000 businesses start each month
So, 543,000x12
About 6,516,000 businesses start each year
Answer:
A...increase
B...be unchanged
C....increase
Explanation:
It should be understood that it is only the telephone lines that was increased and not the number of the customer representatives, and also the number of the time they were using to attend to each customer was not reduced. So in this case, the number of customers that will be experience delay will definitely increase, why the time spent on phone by the customer representatives will remained unchanged, and the customer representatives utilization will increase too.
Answer:
Fashion industry is very dynamic. The reason for low sales is due to change is customer preference for certain type of clothing.
Explanation:
As a brand manager, we need to understand markets trends and then analyse sales. The main reason for constant low sales is mainly due to change in fashion sense of customer. There can be some seasonal effect which cause decline in sales. Normally gents wear t.shirts and formal shirts because they are office going people. They will require formal suiting which will make them feel gentlemen and decent clothing. They will require consistent quality products and if there is any issue with the cloth stuff, they will move to another brand.
