Answer:
(a) $35,000
(b) $8,000
Explanation:
(a) Accounting profit:
= Total revenue - Explicit cost
= $75,000 - (wages + Annual rent + Material cost)
= $75,000 - ($13,000 + $5,500 + $21,500)
= $75,000 - $40,000
= $35,000
(b) Economic Profit:
= Total revenue - Explicit costs - Implicit costs
= $75,000 - (wages + Annual rent + Material cost) - (Income from investment + Earnings as a potter + Worth of entrepreneurial talents)
= $75,000 - ($13,000 + $5,500 + $21,500) - ($5,500 + $19,000 + $2,500)
= $75,000 - $40,000 - $27,000
= $8,000
Answer:
Explanation:
Radio Frequency Identification (RFID) is a form of wireless communication that used to uniquely identify an object, person or animal.
(1) RFID chips are used to track goods in distribution.
These chips built-in a scanner that is used to track goods in distribution. for example, logistic companies using this tool to track goods in their distribution.
(2) RFID chips are used to track job progress in production:
These chips are used in the factory to track the job progress in production. For example, in the Biscuit Factory, counting of numbers of biscuits and then wrapping into packet.
(3) RFID chips are used to provide special instruction to the operator:
These chips are used to provide special instruction to the operator working on the machine in the industry of textile, flour mills, and steel industry, etc.
(4) RFID chips can be used in inventory record keeping:
These chips are used in the scanner that tracks the inventory record. Large organizations and firms that are producing products use RFID chip built-in scanner to keep the inventory record. These scanners track inventory and submit data to a centralized system for making decisions etc.
Answer:
November 5
Dr Unearned Ticket Revenue $1,930,000
Cr Ticket Revenue $1,930,000
Explanation:
Preparation of the journal entry to Record the revenue earned for the first concert date of November 5.
Based on the information given if Ticketsales receives the amount of $7,720,000 cash in advance ticket sales for a four-date tour of Bon Jovi which means that assuming it represents one-fourth of the advance ticket sales the revenue earned for the first concert date of November 5 will be :
November 5
Dr Unearned Ticket Revenue $1,930,000
Cr Ticket Revenue $1,930,000
($7,720,000 x 1/4)
(To Record the revenue earned for the first concert date of November 5.)
Answer:
a. What is the value today of Steinberg's debt and equity?
b. What is the value today of Dietrich's debt and equity?
c. Steinberg’s CEO recently stated that Steinberg’s value should be higher than Dietrich’s because the company has less debt and therefore less bankruptcy risk. Do you agree or disagree with this statement?
- A. Disagree: a company's value is determined by by its operating income (EBIT), not by there capital structure (M&M theory).
Explanation:
economic expansion 80% chance, EBIT $3.5 million
economic recession 20% chance, EBIT $1.9 million
expected EBIT = (3.5 x 0.8) + (1.9 x 0.2) = $2.8 million + $0.38 million = $3.18 million
Steinberg's debt obligations $980,000 at the end of next year
Dietrich's debt obligations $2,000,000 at the end of next year
total company value = $3.18 million / (1 + 10%) = $2,890,909
Answer:
It has been a well known fact that competitive strategy creates a unique value for a target set of movie customers. However, it is not able to predict nor explain the outcome due to the fact that Marvel only focused on trying to compete to be the best in comic and superhero films which thus resulted in basically a case whereby there was a competition in which one participant wins totally and another loses without gaining any objectives and thus they were not able to win.
Explanation:
This question is taken from a book titled "The Marvel Way: Restoring a Blue Ocean". It was written by W. Chan Kim, Renee Mauborgne, Michael Olenick. The central theme of the book was about one of the greatest turnarounds in modern business history by the then Marvel CEO with the name Peter Cuneo who was responsible for turning the business around and succeeded in launching a blue ocean.
From the question, neither predicts nor explains the outcome because;
It has been a well known fact that competitive strategy creates a unique value for a target set of movie customers. However, it is not able to predict nor explain the outcome due to the fact that Marvel only focused on trying to compete to be the best in comic and superhero films which thus resulted in basically a case whereby there was a competition in which one participant wins totally and another loses without gaining any objectives and thus they were not able to win.
