Provide an explanation of how his/her life will change economically, socially, and politically in a centrally planned economy.

Firm A and Firm B are the only two companies that sell mail-order DVD rental subscriptions. For several years, Firm A priced its

sveta [45]

Answer:

b. Firm A engaged in predatory pricing.

Explanation:

Since Firm A and B are the only two companies that sell mail-order DVD rental subscriptions.

Firm A decided to price its subscriptions below average variable cost thereby causing Firm B to also sell subscriptions below average variable cost, but they went bankrupt and exited the market. Firm A then raised prices by 40% and is currently earning large, positive economic profits.

Based on this information only, an argument can be made that Firm A engaged in predatory pricing.

Predatory pricing is a marketing or pricing strategy that involves lowering the cost of goods and services for a short-term, in order to lure competing firms to lower their price, thus causing them to go bankrupt and exiting from the market.

3 0

3 years ago

Jansen Company reports the following for its ski department for the year 2019. All of its costs are direct, except as noted. Sal

Umnica [9.8K]

Answer:

Part 1

JANSEN COMPANY

Departmental Income Statement—Ski Department

Sales $605,000

Cost of Sales ($425,000)

Gross Profit $180,000

Direct Expenses

Salaries ($97,000)

Utilities ($11,000)

Depreciation ($32,000)

Other Expenses ($38,000)

Operating profit $2,000

Part 2

JANSEN COMPANY

Departmental Contribution to Overhead—Ski Department

Sales $605,000

Cost of Sales ($425,000)

Gross Profit $180,000

Direct Expenses ($140,000)

Contribution $40,000

Less Overheads

Salaries ($15,000)

Utilities ($3,000)

Depreciation ($10,000)

Office Expenses (20,000)

Total Overheads $48,000

Contribution to overhead $40,000 : $48,000

Part 3

No. Jansen should not eliminate the ski department because it is making a profit on it on (Contributing towards the company costs)

Explanation:

Hie, I have attached the full question as pdf below

If the department is making a loss on its own, it must be eliminated. Departments must make a contribution towards the costs of the company overall

Download pdf

7 0

3 years ago

Which of the following is an example of revenue? Multiple Choice

Jobisdone [24]

Answer:

4. Cash received from customers at the time services were provided

Explanation:

The cash received by providing services to the clients is an example of the generation of revenue and is an asset resource. The cash that is received from the bank loans is a liability.

As the cash investments made by owners increase the stockholder's share and it accounts for the common stock. Cash that is received on the sale of land is an asset that is an exchange form of transaction which reduces one as the land and also increases the assets of cash.

7 0

3 years ago

Branch Company provided the following information: Standard fixed overhead rate (SFOR) per direct labor hour $5.00 Actual fixed

Liula [17]

Answer:

1. $5000 unfavorable

2. 3000 hrs favorable

Explanation:

Fixed Overhead spending variance

Budgeted fixed overhead - Actual fixed overhead

$300,000 - $305,000

= $5,000 unfavorable

Fixed Overhead volume variance

Actual volume = actual fixed overhead / Actual fixed overhead per hr

= $305,000 / $5

= 61000 hrs

(Budgeted volume - Actual volume) * budgeted rate

64000 hrs - 61000 hrs

= 3000 hrs favorable

5 0

3 years ago

Outdoor Company expects to sell 7 comma 500 units for $ 175 each for a total of $ 1 comma 312 comma 500 in January and 2 comma 5

nikitadnepr [17]

Answer and Explanation:

The preparation is presented below:

Outdoor Company

Inventory, Purchases, and Cost of Goods Sold Budget

Two months Ended January 31 and February 28

Particulars January February March

Sales in units 7,500 units 2,500 units 4,700 units

Sales price $175 $195 $270

Sales in dollars $1,312,500 $487,500 $1,269,000

Percentage of cost of goods sold 60% 60% 60%

Cost of goods sold $787,500 $292,500 $761,400

Add: Desired ending merchandise inventory $185,500 466,840

($292,500 × 60% + $10,000) ($761,400 × 60% + $10,000)

Total merchandise inventory required $973,000 $759,340

Less: Beginning merchandise inventory $482,500 $185,500

($787,500 × 60% + $10,000)

Budgeted purchases $490,500 $573,840

The ending inventory of month of Jan should be beginning inventory of Feb and the same is shown above

6 0

4 years ago