Answer:
A. January 2016
B. May 2016
C. June 2016
Explanation:
Req. A
From the data table above, it is easy to understand that only 10,000 mobile phones were sold in the month of January.
Req. B
From the information above, the highest sales level was in the month of May with a 12,000 smartphones.
Req. C
We know, a monopolist maximizes its profit when marginal revenue equals to the marginal cost. MR = MC.
In that case, two months had equal marginal revenue = marginal cost, i.e., February and June.
According to the maximizing rule, at which point there are a high number of sales and MR = MC, that sales point is considered as maximizing profit.
Therefore, in the month of June, the sales were high with 11,000 smartphones. Hence, June was the firm's maximizing profit.
Answer:
$2,730,000
Explanation:
The opening cash balance is netted off the cash flows from all activities namely; Operating, investing and financing activities to get the closing cash balance.
The operating activities includes elements such as net income, depreciation and amortization, changes in working capital etc.
Given;
Net income = $2,500,000
Depreciation = $160,000
accounts receivable decrease = $350,000 (inflow of cash)
accounts payable decrease = $280,000 (outflow of cash)
net cash provided by operating activities using the indirect approach
= $2,500,000 + $160,000 + $350,000 - $280,000
= $2,730,000
Answer:
A) inelastic demand
Explanation:
Demand is inelastic if a change in price has no effect on quantity demanded.
Changes in price has no effect on quantity of leather demanded. Therefore, the demand for leather is inelastic.
Direct purchasing is buying raw materials used in the production process.
Straight rebuy is purchasing similar goods from the same supplier under similar conditions.
Modified rebuy is purchasing similar goods either from a different supplier or in a different condition.
Answer:
To minimize risk, investors should investigate the market and diversify its portfolio.
Interest that builds on the principle and the interest already gained is compound interest
Money invested in a CD
always have a fixed rate of return and is less risky than money used to purchase a home.
