Answer:
Option (a) is correct.
Explanation:
Given that,
Annual revenues = $137,800,
variable costs = $82,600
Fixed costs = $11,000
Annual depreciation = $23,500
Tax rate = 34 percent
Annual Income before Taxes:
= Annual revenues - Variable cost - Fixed Costs - Depreciation
= $137,800 - $82,600 - $11,000 - $23,500
= $20,700
Net income:
= Annual Income before Taxes × ( 1 - T)
= $20,700 × 0.66
= $13,662
Annual operating cash flow:
= Net income + Depreciation
= $13,662 + $ 23,500
= $37,162
The correct answers are as follows:
1. The primary stakeholders of a business are defined as those individuals who engage internally in economic transactions with the company. Primary stakeholders have direct interests in the company and they are affected by the policies, objectives and the actions of the company.
Secondary stakeholders are those individuals who do not have direct interest in the company.
2. SHAREHOLDERS AND CUSTOMERS are some of the primary stakeholders of a business. Other examples of primary stakeholders are: suppliers, creditors, employees, investors, etc.
The primary stakeholders of a company depend on the financial well being of the company for their own benefits and the company also depends on their efforts in order to succeed.
3. THE GENERAL PUBLIC AND THE COMMUNITY IN WHICH A COMPANY IS LOCATED are some of the secondary stakeholders of a business. Other examples of secondary stakeholders are: the media, business support groups and activist groups.
It is very important for a company to identify and work with its secondary stakeholders. Companies who recognize and cooperate with their secondary stakeholders usually achieve good reputation and goodwill and always get supports for their expansionary efforts.
Answer: the strategy is called pull.
Explanation:
The primary difference between push and pull marketing lies in how consumers are approached. In push marketing, the idea is to promote products by pushing them onto people. On the other hand, in pull marketing, the idea is to establish loyalty drawing consumers to the products with advertising and sales promotion activities.
Answer:
$25
Explanation:
Willingness to pay is the highest amount a consumer is willing to pay for a service
A tax is a compulsory sum levied on goods and services by the government. Taxes increases the price of goods
deadweight loss of the tax is the reduction in demand or efficiency as a result of tax
Answer:
12,000 units
Explanation:
The computation of the level of production is shown below:
Since the variable cost is reduced by $5 so new variable cost is $70 so there is an margin of $5
And, there is an increase in fixed cost i.e $60,000
So, the level of production is
= An increase in fixed cost ÷ Margin per unit
= $60,000 ÷ $5
= 12,000 units
