Answer:
B
Explanation:
The capital market serves as an intermediator between households and firms. In a classic economic model, households are owners of capital resources, but firms need these resources to operate. Then, the capital market allows that households rent their capital resources to firms and firms pay them back. It is a beneficial allocation of resources for households and for firms.
Answer:
Mark-up = 101.9%
Explanation:
<em>Mark up is the percentage of the product cost that is made as profit. It is profit expressed as a percentage of the product cost.</em>
Mark-up = profit/product cost × 100
Mark-up = $55/54 × 100 =101.85%
Mark-up = 101.9%
Answer and Explanation:
The preparation of the analysis showing whether the old machine should be retained or replaced is presented below:
Particulars Retained equipment Replace equipment Change in the net income
Variable cost $1,560,000 $1,230,000 $330,000
($520,000 × 3 years) ($410,000 × 3 years)
Cost of the new
machine $300,000 -$300,000
Net change $30,000
As we can see the amount comes in positive which reflects that the machine should be replaced
Answer:
D) have customers who operate in many different parts of the country.
Explanation:
A lockbox is basically a bank mailing address where a company's clients can send their payments to. It is similar to mailbox that receives letters, only that this one receives checks and cash. The bank is in charge of opening the lockbox and depositing the cash and checks to the company's account, and reporting the information.
<u>Explanation:</u>
<u>Three qualitative factors important for management decision-making include:</u>
- customer satisfaction
- new technology
- current legal issues
Assuming these qualitative factors are faced by a soft drink manufacturing company, in terms of their order of importance,
Current legal issues need to be addressed first by management when making decisions in other to avoid having a bad reputation among potential investors.
Next, their customer satisfaction for their product; the soft drink, if left unchecked can result in reduced demand in the future; which management needs to consider when making decisions.
And finally, if there's any introduction of new technology into the industry then management would need to determine its effect on company profit.
For example, In a situation where this company is experiencing an increase in assets which is a quantitative factor while having a decline in customer satisfaction for their products. In the long term, the benefits of having increased customer satisfaction would become evident when demand and profit declines.
