Answer:
Correct Answer:
E. fewer substitutes are available because consumers are more sensitive to prices.
Explanation:
<em>Market power is the ability of a company to successfully influence the pricing of its products or services in the overall marketplace. </em><em>This is common among most big corporations that produces consumer goods and offer services. </em>
This market power can be influenced by some factors. On the other-hand, the market power could be eroded leading to inability of the companies to influence prices do to the following:
1.<u> Number of companies in the market:</u> The lower the companies producing same product in the market, the higher the chances of the companies to be able to influence market prices. Otherwise, the market power will be eroded due to high number of companies.
2. <u>Elasticity of demand:</u> The persistent demand of a product by people helps to determine the market power of those companies. When this is lacking, the market power is eroded.
3. <u>Product differentiation:</u> The ability of a company to provide a unique product that offers good services in a market helps it to achieve market power. Lack of these erodes the market power.
Answer:
269 million
Explanation:
The free cash flow to the firm is 275 million
The interest expense is $60 million
The tax rate is 35%
The net debt of the firm increases by $33 million
Therefore the free cash flow to the equity holders of the firm can be calculated as follows
= 275 million-60 million(1-35/100) + 33 million
= 275 million- 60( 1-0.35) + 33 million
= 275 million- 60(0.65) +33 million
= 275 million - 39 million + 33 million
= 236 million + 33 million
= 269 million
The Peak & Vale Accountants provides or offers
other firms and institutions with accounting services. Questions of what is ethical
involve the extent to which the Peak & Vale has an ethical duty beyond
those duties mandated by the law.
Answer:
Lopez Sales Company
1. Amount of Gross Margin recognized by Lopez:
Sales = $81,600
Less cost of sales = $38,400
Gross Margin = $43,200
2. Amount of the gain on the sale of land recognized by Lopez:
Land:
Selling price = $81,000
less Cost = $43,200
Gain on sale = $37,800
Explanation:
a) Gross margin is the difference between the selling price and the cost price of a product. It is the profit determined before business running expenses are deducted to obtain the net income or margin.
It measures the ability of the business to generate enough income to cover expenses that are normally incurred in business, like rent, utilities, and salaries and wages.
b) The Gain on sale of any capital asset is the difference between the selling price and the cost (book value). This gain is reported separately in the income statement and is the subject of capital gains tax.
Answer:
The correct answer is B
Explanation:
Stockout or OOS stands for Out of Stock, which is event that causes the inventory to be exhausted. It occur with the entire supply chain.
In this case, Firm is facing failure for having adequate or enough supplies on hand, which result in the lost sales amounts to $175,000. It is representing the Stockout in the inventory management costs.
