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2 years ago

What is profitability

Business

1 answer:

kkurt [141]2 years ago

3 0

Answer:

Profit, in accounting, is an income distributed to the owner in a profitable market production process (business). Profit is a measure of profitability which is the owner's major interest in the income-formation process of market production. There are several profit measures in common use.

Income formation in market production is always a balance between income generation and income distribution. The income generated is always distributed to the stakeholders of production as economic value within the review period. The profit is the share of income formation the owner is able to keep to themselves in the income distribution process. Profit is one of the major sources of economic well-being because it means incomes and opportunities to develop production. The words "income", "profit" and "earnings" are synonyms in this context.

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In a closed economy, what remains after paying for consumption and government purchases is:________

natta225 [31]

Answer: d. national saving.

Explanation:

In a closed economy, GDP is calculated by adding Consumption, Investment and Government purchases. The investment in this instance can be thought of as National Saving.

National saving is the difference between the income in the country and the consumption and government purchases. It represent what households and the government save up from their income sources which can be used for investment.

5 0

3 years ago

Economists often are interested in percentage change from one period to the next. The percentage rate of change of gross domesti

Andreyy89

Answer:

The growth rate of the U.S economy in 2011 was 5.65%

Explanation:

This is a simple calculation

We use this formula to calculate percent changes from one period to another:

% change = $\frac{New Value - Old Vaue}{Old Value} * 100$

We have that the GDP for 2010 was $11,150 billion and the GDP in 2011 was $11,780 billions we then apply the formula:

% change = $\frac{11,780 - 11,150}{11,150} * 100$

% change = $\frac{630}{11,150} = 0.056 * 100 = 5.65%$

This means that the growth rate of the U.S economy in 2011 was 5.65%

7 0

3 years ago

A seasonal index for a monthly series is about to be calculated on the basis of three years' accumulation of data. The three pr

Vika [28.1K]

Answer:

A. 0.684

Explanation:

A seasonal index refers to an index that is used to compare the value for a particular period with the average value of all periods.

The purpose of using a seasonal index is to show the relationship between the two values, and the degree to which the two values are different.

The seasonal index can be calculated as the latest value for a period divided by the average of all periods. Therefore, we have:

Seasonal index for July = Latest value for July / Average demand over all months = 130 / 190 = 0.684.

Therefore, he approximate seasonal index for July is 0.684.

5 0

3 years ago

cost formula is expressed as follows: Y = $17PH + $760,000 where PH is defined as process hours. What budgeted dollar amount wou

VMariaS [17]

Answer:

B. $ 1,984,000 $ 2,112,000

Explanation:

Static budget is a budget that has been prepared for a standard level of output with no tendency to vary irrespective of the level of output.

Therefore, the figure that will appear in static budget is as follows:

Y = $16PH + $640,000 where PH is defined as process hours

PH = 84,000 (Budgeted output)

Y = $16(84,000) + $640,000

Y = $1,344,000 + $640,000

Y = $1,984,000

That is the figure that will appear in the static budget is $1,984,000

Flexible budget is a budget designed to vary with the level of actual activity.

Therefore the figure that will appear in the flexible budget is as follows:

Y = $16PH + $640,000 where PH is defined as process hours

PH = 92,000 (Budgeted output)

Y = $16(92,000) + $640,000

Y = $1,472,000 + $640,000

Y = $2,112,000

That is the figure that will appear in the flexible budget is $2,112,000

8 0

3 years ago

San Ruiz Interiors provides design services to residential and commercial clients. The residential services produce a contributi

Sliva [168]

Answer:

If closed the operating income will decrease by 50,000

Is a better scenario to continue with the residential sercives

Explanation:

current scenario:

contribution margin 450,000

Fixed Cost 480,000

net loss 30,000

drop scenario:

contribution margin = 0

fixed cost 450,000-370,000 = 80,000

net loss (80,000)

8 0

3 years ago