Answer:
D. produces output and earns an economic profit.
Explanation:
The firm will produce as making the product will pay the cost of the units produced with the current market price of the final good.
As the price is above the average total cost the firm will also earn an economic profit (that is after the accounting profit of explicit cost we subtract the opportunity cost with are implicit in any business and even there, the company manages to get a profit.
Answer:
The correct answer is c. poorly performing firms.
Explanation:
Corporate governance is the set of rules, principles and procedures that regulate the structure and operation of the governing bodies of a company. Specifically, it establishes the relationships between the board of directors, the board of directors, the shareholders and the rest of the interested parties, and stipulates the rules governing the decision-making process on the company for the generation of value.
In recent years, and more specifically following the onset of the financial crisis, the international community has understood the importance of listed companies being managed in an adequate and transparent manner. The good governance of companies is the basis for the functioning of markets, as it favors credibility, stability and contributes to boosting growth and wealth generation.
The weakness shown by corporate governments of large organizations in the past has multiplied the demands for transparency, truthfulness, good practices and responsible business behavior on the part of investors, consumers and society in general, which not only pay attention anymore. to financial indicators, but they also want to know how those results have been achieved.
Answer:
$73,000
Explanation:
The computation of the direct material cost is shown below:
As we know that
Direct material cost is
= Opening balance of raw material + purchase made - ending balance of raw material
= $37,000 + $71,000 - $35,000
= $73,000
We simply applied the above formula
Hence, the correct option is third i.e. $73,000
<span>The target customers for this business view suits as an investment. They take the time to find the best deal and make sure it's a quality suit. Their customers are most likely stylish people who want quality but also want a good deal on their suits.</span>
Answer:
d. $15,400
Explanation:
Given the format, the cost elements are fixed and variable. Of all the items listed, only the fixed expense will not be affected when the activity level changes from 5700 units to 5300 units.
As such,
Sales (5,300 units) = 5300/5700 × $319,200 = $296,800
Variable expenses (5,300 units) = 5300/5700 × $188,100 = $174,900
As such, If the company sells 5,300 units
Amount in $
Sales 296,800
Variable expenses (<u>174,900)
</u>
Contribution margin 121,900
Fixed expenses (<u>106,500)</u>
Net operating income <u> 15,400 </u>
