Answer:
Richard is trying to understand if his product or service is substitutable.
Explanation:
According to the resource based theory, businesses gain competitive advantages over other businesses in the industry based on the strength of their resources.
For competitive advantage to be sustainable however, such resources must be rare, and not easily imitated or substituted.
Richard is carrying out research on his competitors to find out what they have to offer, to know if his product can be easily substituted or replaced.
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.
<span>The dark printed words on the page of a book are easily read because they are printed on a light ground. this is an example of the principle of ____________?
Contrast</span>
Answer:
Deprecation base=$26,300
Explanation:
Given Data:
Cost of machine=$28,000
Tax=$125
Fees=$200
Shipping charges=$500
Paid to contractor to build and wire a platform for the machine=$475
Salvage value=$3000
Useful life = 6 years
Required:
Depreciation base of Cominsky's new machine=?
Solution:
Deprecation base=Acquisition Cost-Salvage Value
Acquisition Cost:
It is the cost which involves the buying of asset and making the asset to work. In our case:
Acquisition Cost=Cost of machine+Tax+Fees+Shipping charges+Paid to contractor to build and wire a platform for the machine
Acquisition Cost=$28,000+$125+$200+$500+$475
Acquisition Cost=$29300
Deprecation base=Acquisition Cost-Salvage Value
Deprecation base=$29300-$3000
Deprecation base=$26,300
Answer: a. an e-brand brand
Explanation:
An e-brand is one that provides just an online service for merchandise sales. These companies do not have physical locations but rather show you all that they sell on their websites and then when you purchase something, they deliver it as a physical good. The most popular example of such is Amazon.
The advantage of such brands is that they get to save on the rental and other property costs related to establishing brick-and-mortar stores because they are online.
