Answer:
a) must accept market price for its physical capital inputs.
Explanation:
The price of gold in the commodity market is being influenced by market speculation. Market speculation implies investors are trying to profit from the changing prices of gold. When the market is active, the price of gold will be moving up and down depending on demand.
The current prices are high is a motivation to sell. For I'maGoldMiner to profit from the current high prices, it must continue with production. In the event the prices of physical capital inputs change, the company must accept the new prices. The high selling prices will assist the company in absorbing any changes input costs. That way, the company will maximize on the current high prices.
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
Sales Growth pricing objective
Explanation:
Since prices are being reduced then the aim will not be profitability, neither was it mentioned that it was because of competitors but it was done in the bid to meet internalsales targets.
This is an example of which pricing objective of Sales Growth:
Sales Growth’s objective is to increase sales volume. <u>It sets its price in such a way that more and more sales can be achieved.</u> It is assumed that sales growth has direct positive impact on the profits. <u>So, pricing decisions are taken in way that sales volume can be raised. Setting price, altering in price, and modifying pricing policies are targeted to improve sales.</u>
Answer:
The correct answer is B
Explanation:
The company’s cash flow from operating activities for the year 2019 is computed as follows;
Net income $200,000
Add:
Depreciation 35,000
Amortization of patent 10,000
loss on the sale of equipment 5,000
Total cash provided by operating activities $250,000
*Depreciation expense, amortization expense and loss on sale on equipment are all non cash transaction which cause a decrease on net income. Thus if we want to know the actual cash activities for the year, we have to add it back to the Net income to arrive the correct answer.
Answer:
$60,000
Explanation:
Double declining method is a depreciation method used to expense the cost of an asset.
Depreciation expense using the double declining method = Depreciation factor × cost of asset
Deprecation factor = 2 (1/useful life) = 2(1/8) = 1/4
Depreciation expense in 2016 = 0.25 × $320,000 = $80,000
Net book value = $320,000, - $80,000 = $240,000
Deprecation expense in 2017 = 0.25 x $240,000 = $60,000
I hope my answer helps you
