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3 years ago

Producing goods only enough to meet the basic needs of the family is called

Business

1 answer:

zepelin [54]3 years ago

8 0

Answer:

Domestic production

Explanation:

Domestic production means we make things only to satisfy our household needs of family.
In simple words the production which is made not in the intention of business is called Domestic production

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Leah, Inc., is proposing a rights offering. Presently there are 400,000 shares outstanding at $54 each. There will be 25,000 new

MatroZZZ [7]

Answer: a. $22,725,000

b. 16.00 rights per new share

c. $53.47 per share

d. $0.53 per share

Explanation:

(a)-New Market Value

New Market Value = [Number of shares outstanding x Price per share] + [New shares issued x Price per share]

= [400,000 shares x $54 per share] + [25,000 shares x $45 per share]

= $21,600,000 + $1,125,000

= $22,725,000

(b)-Number of rights needed

Number of rights needed = Current number of shares outstanding / New shares issued

= 400,000 shares / 25,000 shares

= 16.00 rights per new share

(c)-Ex-rights price

Ex-rights price = New Market Value / Total number of shares outstanding

= $22,725,000 / [400,000 shares + 25,000 shares]

= $22,725,000 / 425,000 shares

= $53.47 per share

(d)-Value of a right

Value of a right = Current market price per share - Ex-rights price

= $54.00 per share - $53.47 per share

= $0.53 per share

7 0

3 years ago

The manager of Viking Sports finds that the price elasticity of baseball bats is −0.77. He wants to hold a sale to get rid of hi

kow [346]

The price elasticity of baseball bats is −0.77, this indicates that the demand for bats tends to inelasticity. Therefore, if the manager wants to dispose of his inventory, he would advise you not to lower the price because it would cause a decrease in income. He could raise the price and earn more since being an inelastic demand, the quantity demanded would not be modified as much as the price would change.

6 0

3 years ago

The Talbot Company uses electrical assemblies to produce an array of small appliances. One of the assemblies, the XOminus01, h

Molodets [167]

Answer:

$1,975 per year

Explanation:

The first step is to calculate Economic order quantity using the following formula:

Economic Order Quantity = √2DO / H

Here

A is Annual Demand which is 12,000 Units.

O is Ordering Cost per order $650 per order.

H is Holding or Carrying Cost per unit per year is $30 per unit per year.

By putting values, we have:

Economic Order Quantity = √(2 * 12,000 * $650) / 30 = 131.66 units

Now annual inventory holding costs can be calculated using the following formula:

Inventory Holding Cost = Average Inventory * Holding Cost

Here,

Average Inventory = EOQ /2 = 131.66 / 2 = 66 units

By putting values we have:

Annual Inventory Holding Cost = 66 * 20 = $1,975 per year

5 0

3 years ago

Mary O. Andrettey wants to purchase an expensive sports car. She needs to borrow money to purchase the car, and has loan proposa

irina [24]

Answer: Proposal C

Explanation:

The way to solve this is to calculate the Present Values of all these payments. The smallest present value is the best.

Proposal A.

Periodic payment of $2,000 makes this an annuity.

Present value of Annuity = Annuity * ( 1 - ( 1 + r ) ^ -n)/r

= 2,000 * (1 - (1 + 0.5%)⁻⁶⁰) / 0.5%

= $103,451.12

Proposal B

Present value = Down payment + present value of annuity

= 10,000 + [2,200 * ( 1 - ( 1 + 0.5%)⁻⁴⁸) / 0.5%]

= 10,000 + 93,676.70

= $103,676.70

Proposal C

Present value = Present value of annuity + Present value of future payment

= [500 * (1 - (1 + 0.5%)⁻³⁶) / 0.5%] + [116,000 / (1 + 0.5%)⁶⁰]

= 16,435.51 + 85,999.17

= $‭102,434.68‬

<em>Proposal C has the lowest present value and so is best. </em>

6 0

3 years ago

A purely competitive firm should produce in the short run if its total revenue is sufficient to cover its:

Leokris [45]

Answer:

D. total variable costs

Explanation:

A purely competitive firm should produce in the short run if its total revenue is sufficient to cover its <u>total variable costs</u>.

In short run, fixed cost had to be incurred even if it shuts down. So it should operate as long as price is greater than average variable cost.

8 0

3 years ago