Tokuji's monthly net income will rise to $650 the following month. Tokuji can increase his discretionary spending by $20 if he raises his monthly savings to $110.
How is total net income calculated?If your total expenses are greater than your total revenues, you have a negative net income, also known as a net loss.
Tokuji would save approximately $110 from his monthly income, or 17% of his total monthly income, if he made the decision to do so.Therefore, Tokuji can increase his spending in the same proportion using the money he has saved. As a result, he would be able to spend approximately $20 to increase his discretionary spending by approximately 17%.To learn more about net income here:
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How does improved technology allow the economy to operate more efficiently?
The correct response is a) It helps to make better use of the nation's limited resources.
Any item that is readily available to us in our surroundings, is economically feasible, has access to modern technology, and is culturally sustainable and helps us to meet our needs and fulfill our wants is referred to as a resource. Resources can be broadly divided into renewable and non-renewable groups based on their availability. They can also be divided into real and potential groups based on their level of development and use, biotic and abiotic groups based on their origin, and localized and ubiquitous system called on their dispersion (private, community-owned, national and international resources). An item might turn into a resource over time as technology evolves. Improved wellbeing, increased revenue, and improved system performance can all be the results of smart resource management. A natural resource is everything that can be gathered from the environment to satiate human desires and needs. A resource meets the needs of a living organism from a more basic biological or ecological standpoint (see biological resource). In several well-established fields of study, including economics, biology and ecology, computer science, management, and human resources, the idea of resources has been created and is intertwined with ideas like competition, sustainability, conservation, and stewardship. Commercial or non-commercial forces in human society call for resource management to allocate capital.
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How does improved technology allow the economy to operate more efficiently?
a) It helps to make better use of the nation's limited resources.
b) It ensures that all of the nation's resources will be used
c) It enables people to work fewer hours.
d) It ensures that all of the nation's workers are employed.
Which marketing management philosophy is often adopted by organizations that sell unsought products such as life insurance, retirement plans, and preplanned funeral services
The correct answer to the given question about management philosophy being adopted is option e) Sales Orientation.
A business approach known as "sales orientation" is centered on creating the greatest products and services possible without taking the requirements or wishes of the client into account. This strategy typically relies on aggressive, outbound sales techniques and marketing initiatives to increase sales. If a corporation is sales-driven, the marketing department will be in charge of developing the promotional activities that convince consumers they require a product, even if no market research has been conducted to demonstrate their desire or need for that product. In the end, it is their responsibility to generate interest in the product. In the sales division, sales representatives will spend time cold calling and offering discount promotions in order to close deals quickly. Sales cycles are frequently shorter in companies with a sales focus.
Question
Which marketing management philosophy is often adopted by organizations that sell unsought products such as life insurance, retirement plans, and preplanned funeral services
a. Profitability orientation
b. Production orientation
c. Marketing orientation
d. Product orientation
e. Sales orientation
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Which item(s) in the income statement shown above will not affect cash flows? (You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers.)
a. Sales
b. Variable expenses
c. Advertising, salaries, and other fixed out-of-pocket costs d. expenses
e. Depreciation expense
Depreciation expense item(s) in the income statement shown above will not affect cash flows.
Hence, Option E is correct
This is known as depreciation expense. A piece of property's accumulated depreciation is the total amount of depreciation expense that has been incurred since the property first came into use. For accounting purposes, depreciation is treated as an expense because it increases a company's operating costs. Machines and other assets go through wear and tear as they are used, losing value over the course of their useful lives. On the income statement, depreciation is listed as an expense. Depreciation, as we already stated, is not a current asset. Moreover, it is not a fixed asset.When an asset gets low for a single period, then it reflects shows how much the value has lowered down.To know more about depreciation expense here
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Scarcity, opportunity cost, and marginal analysis Aa Aa Latasha ls training for a triathlon, a timed race that combines swimming, cycling, and running. Consider the following statement: Because her pool sessions are helping her swim much reduce by one hour per in the swimming pool; however, her husband says that she should stop doing any cycling and running and spend all 20 hours per week in the pool. faster, Latasha plans to week the time she spends training on the bike and increase by one hour the time she spends Which basic principle of individual cholce does Latasha's decision lustrate that her husband's advice does not O People usually exploit opportunities to benefit themselves. O All costs are opportunity costs Resources are scarce. O Many decisions are taken using marginal thinking
She does not view choosing between bike and swimming as a binary choice. She marginally modifies the amount of time she devotes to practising each activity.
What are the principles behind individual choice?Numerous decisions are made on the fly. A little bit of bike training might be more valuable than the final hour of pool training if she reduces her time spent exercising there to zero. She does not view choosing between bike and swimming as a binary choice. She marginally modifies the amount of time she devotes to practising each activity.
In order to do that, we'll examine four fundamental principles of individual decision-making that are significant in an economic context: People have to make trade-offs; these trade-offs result in opportunity cost; people think at the margin; and people react to incentives. Decisions are frequently made in the margins. explanation: A how-much decision was made by Neha when deciding between pool time and bike time.
Therefore the correct answer is Many decisions are taken using marginal thinking.
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What price should Jowers charge DayTraderJournal for the Atlantic Bundle (i.e., Tronn servers PESA software tool) using status-quo, competition-based, cost-plus, and economic value pricing
Competition-based pricing should Jowers charge Day Trader Journal for the Atlantic Bundle.
Pricing, which is the process by which a corporation determines the price at which it will offer its goods and services, may be a component of the marketing strategy of the company. The cost of making the items, the market, the competition, the state of the market, brand recognition, and product quality are all factors that the company will consider when determining prices. The quality of the product and the distribution channel and advertising strategies utilised all have an impact on price. Prices are probably going to be higher in situations where production is expensive, distribution is restricted, and the product is supported by significant advertising and promotion activities. In some areas, a distributor's aggressive sales effort might take the place of good product quality, successful marketing campaigns, or effective promotions.
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Which of the following is not one of the more commonly used options for cutting project costs?
A. Reduce project scope
B. Have owner take more responsibility
C. Moving the completion date further out
D. Brainstorming cost savings options
E. Outsourcing project activities
Option (C) is the answer. One way to cut costs on a project is not to move the deadline for completion further out.
What is cost cutting in project ?Reducing or eliminating outside professional services like advertising agencies and contractors, closing facilities, streamlining the supply chain, downsizing to a smaller office, or moving to a less expensive building or area are all examples of cost-cutting measures.
New technology implementation can also be seen as a way to cut costs. For instance, a brand-new machine might take the place of a certain number of employees, cutting costs associated with labor. In this scenario, the machine's purchase price would be offset by the absence of labor costs for a predetermined amount of time.
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When a firm's only variable input is labor, then the slope of the production function measures the
a. quantity of labor.
b. quantity of output.
c. total cost.
d. marginal product of labor.
When a firm's only variable input is labor, then the slope of the production function measures the marginal product of labor.
Hence, Option D is correct
The marginal product of labor, also known as MPL, is the increase in total production that occurs when a company adds one more unit of labor (typically one more employee), while keeping all other factors of production constant .When one unit of an input, like labor, is added to the current combination of productive factors, the additional output that results is known as the marginal product of that input. The increase in overall labor costs caused by adding one worker is known as the marginal cost of employing labor.The marginal physical product is multiplied by the average revenue or the product price to arrive at the value of the marginal product. Physical Product x Sales Price of the Product is a more straightforward way to calculate VMP.To know more about marginal product of labor here
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What are the 3 things that you should keep in mind when investigating sources of information explain each?
When investigating sources of information, three important things to consider are accuracy, reliability, and bias.
Accuracy: This means that the information provided by the source is correct and up-to-date. When researching a topic, it is important to make sure that the source is providing accurate facts and figures, and not just speculation or opinion.
Reliability: This means that the source is trustworthy and can be relied upon to provide truthful information. When investigating sources, it is important to make sure that the source is reliable and has a good reputation.
Bias: This means that the source might be presenting information in a way that is not impartial or unbiased. It is important to look for any signs that a source may be presenting information in a biased manner, such as using language that is slanted or presenting only one side of an argument.
By looking for any signs of bias, you can make sure that the source is presenting a fair and balanced view of the topic.
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Who makes the decisions in a mixed market economy?
In a mixed market economy, the decisions are made by both the government and the private sector.
What is the government?
The government is an organization of individuals who have been elected to represent and serve the needs of the public. It is responsible for creating and enforcing laws, providing services and programs to the public, and promoting the general welfare of the population. Governments may be local, state, national, or international, and they can be divided into various branches, such as legislative, executive, and judicial. Governmental responsibilities can include public education, infrastructure, health care, public safety, environmental regulation, taxation, and economic development. Governments are essential to a functioning society, as they are responsible for protecting the rights and freedoms of citizens and providing a system of laws and regulations to ensure fairness and justice.
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an account that earns interest and is used to meet financial goals is a?
Answer: Savings account
Explanation:
Answer:
saving account
Explanation:
If the reserve requirement ratio (RR) is 0.20, the simple deposit multiplier is A. 20 B. 10
C. 2
D. 5.
If the reserve requirement ratio (RR) is 0.20, the straightforward deposit multiplier is (d) 5.
What Is the Reserve Ratio?The reserve ratio is the percentage of reservable liabilities that commercial banks are required to keep onto rather than lend to or invest in. The country's central bank—the Federal Reserve in the US—determines this criteria.
The reserve requirement, which is frequently used interchangeably with the reserve ratio, refers to the minimal amount of reserves that a bank must maintain. Regulation D of the Federal Reserve Board outlines the reserve ratio. Regulation D established a set of minimum reserve requirements for all depository institutions with transaction accounts and mandates that banks submit quarterly reports to the
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Which of the following sentences is true for the development group of an IS department?
a. The development group manages the process of creating new information systems as well as maintaining existing information systems.
b. An important function for the development group is to monitor user experience and respond to user problems.
c. This group exists in organizations that have negotiated outsourcing agreements with other companies to provide equipment, applications, or other services.
d. The purpose of the development group is to protect data and information assets by establishing data standards and data management practices and policies.
The IS Department's development group manages the process of creating new information systems as well as maintaining existing information systems.
What are the responsibilities of the IS department?The information systems department is in charge of maintaining the firm's IT infrastructure, which includes hardware, software, data storage, and networks. The information systems department proposes new business strategies as well as new information-based products and services, and it coordinates both technological development and organizational changes.
The information technology department is concerned with all aspects of information retrieval, storage, and processing via a system. The information security department is in charge of preventing unauthorized access to information. Both departments should report to the same department head in order to maintain collaboration and proper functioning. As both departments work in the information field, they can stay updated, secure, and assisted to gather and help each other in this manner. Separate reporting of both departments to different heads can lead to confusion, security risks, dysfunctional working, and other risks. As a result, both departments should report to the same department head.
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A cost that remains fixed over limited ranges of volumes but changes by a lump sum when volume changes occur outside these limited ranges is called a _____ cost.
A cost that remains fixed over limited ranges of volumes but changes by a lump sum when volume changes occur outside these limited ranges is called a step wise cost.
What kind of expense remains constant regardless of the volume?
Production costs come in two varieties for businesses: fixed and variable costs The quantity of output produced influences the variation of variable costs. Raw materials, commissions, and labor are all examples of variable costs. Regardless of production output, fixed costs remain constant.
What exactly are costs that remain constant across a wide range of volume?Costs that remain constant over a range of production are called step-variable costs. Over a range of one to 10,000 pencils, the wage of an employee who can produce 10,000 pencils remains constant. You will require another employee to produce 11,000 pencils.
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Compute the "Per capita GDP", which can be obtained by dividing the GDP for each state by that state's population. This number helps economists compare the economic activity between regions that have different population sizes. (Round your answers to nearest dollar. )
GDP per capita rises if population growth is slower than economic growth, while it falls the other way around.
What do you meant by Per capita GDP?GDP per capita is calculated by dividing the total gross value contributed by all producers who are residents of the economy by the mid-year population, plus any product taxes (less subsidies) that are not taken into account when valuing output.
The purchasing power parity (PPP) GDP per capita (current international dollars) is calculated by dividing the GDP by the midyear population. The GDP is the total value of goods and services produced by resident producers in an economy for final consumption, regardless of how much of that value is allocated to domestic and foreign claims.
gross private investment plus government spending plus investment plus government spending plus private consumption (exports – imports). "Per capita" is short for "per head." Gdp per capita = Gdp amount divided by population.
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Is there any product and/or service you can think of that is perfectly price inelastic in demand and is there a product or service you can think of that is perfectly price elastic in demand?
A product or service that is perfectly price inelastic in demand would be something like a life-saving medication or a public utility service such as electricity.
These items have a high degree of necessity and cannot be substituted with another product or service, so consumers will not be influenced by changes in price.
A product or service that is perfectly price elastic in demand would be something like a luxury item such as a designer handbag or a high-end electronic device. These items are not necessary and can be easily replaced with cheaper alternatives, so consumers are more sensitive to changes in price and can easily switch to a different product or service if the price increases.
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A customer overhears a telephone conversation between her close friend and the friend's spouse, where the close friend mentions to her husband (who is the president of a large bank) how worried she is that she will have to move to California if her husband is successful in the takeover attempt of CalTrust Bank. The customer calls her sales representative at the broker-dealer where she maintains an account and places a market order to buy 1,000 shares of CalTrust Bank, which is immediately filled at $32.50 and then is reported by the agent to the customer. Who has violated the insider trading rules?
A The close friend
B The customer
C The agent
D All of the above
Miriam works at the ballpark. She gets paid $45 each day she works. She is given a 10% raise for being a good employee.If she works 20 days next month, how much will she earn
The correct answer to the given question about Miriam's earnings is option B) $990
convert 10% to decimal then multiply = 0.10 × 45.00 = 4.5
= 4.5 + $45.00 = 49.5
49.5 × 20 days =$990
The net advantages of a corporation's operations are its earnings. Additionally, earnings are the source of corporation tax obligations. EBIT - earnings before interest and taxes and EBITDA are two more precise words that are used for an analysis of particular areas of corporate operations - earnings before interest, taxes, depreciation, and amortization. There are other other names for earnings that are frequently used, including income and profit. Depending on their context and the writers' goals, these phrases themselves have a wide range of definitions. For instance, the firm reports profit as the amount remaining after taxes, whereas the IRS uses the term profit to denote earnings.
Question
Miriam works at the ballpark. She gets paid $45 each day she works. She is given a 10% raise for being a good employee. If she works 20 days next month, how much will she earn?
A) $900
B) $990
C) $1000
D) $1100
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Answer: b 990
Explanation:
An investor has an account with stock from two different companies. Last year, his stock in Company A was worth $2600 and his stock in Company B was worth $5900. The stock in Company A has increased 16% since last year and the stock in Company B has increased 18%. What was the total percentage increase in the investor's stock account
The total percentage increase in the investor's stock account of two different companies is 17.38% .
Given,
The stock of company A is $2600.
The stock of company B is $5900 .
Total stock = Stock of company A + Stock of company B
= $2600 + $5900
=$8500
The increase in stock of company A by 16%
Therefore,
Stock in Company A = 2600 × 16 ÷ 100
= $416
Stock in Company B = 5900 × 18 ÷ 100
= $1062
So, the total increase in stock is $416 + $1062 = $1478.
The increase in percentage of investor's stock = Total increase in stock ÷ Total stock × 100
= $1478 ÷ $8500 × 100
= 17.38% .
Thus, the total percentage increase in the investor's stock account is 17.38% .
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Is 5 years a long-term investment?
Yes, 5 years is a long-term investment.
While the length of a long-term investment is subjective, generally speaking, a five-year investment could be considered a long-term investment.
For starters, a long-term investment typically involves diversification and a more passive approach to trading. This means that you're not day trading or trying to time the market, but instead, you're taking a more conservative approach and looking to hold your investments for a longer period of time. Five years is certainly enough time to allow for the market to work in your favor, allowing you to see a return on your investment.
Another key factor to consider when determining if a five-year investment is considered a long-term investment is the interest rate. Many investments will offer a higher interest rate if you commit to a longer-term investment, and five years is often long enough to qualify for these higher rates. This can help you maximize your return on investment in the long run.
All in all, a five-year investment can be a great way to commit your money to a long-term investment while still having the flexibility to access it should you need to. With the right strategy and the right investments, a five-year investment can certainly be a long-term investment.
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How is workplace changing in today's world?
Today's workplace is rapidly changing due to a variety of factors, including technological advances, the growth of the gig economy, the need for more flexible work arrangements, and an increased focus on employee wellbeing.
What is workplace?Workplace is an environment where individuals come together to perform work-related tasks and activities. It is a place where employees can collaborate and grow together. Workplace provides opportunities to learn, develop skills and contribute to the overall progress of the organization. It is a dynamic environment that is constantly changing and evolving to meet the needs of its employees.
Technological advances have enabled companies to shift from manual labor to automation, streamline processes, and increase productivity. The gig economy has allowed for more flexible work arrangements, allowing for remote work, freelance, and contract-based positions. Companies are also recognizing the importance of employee wellbeing and have begun to offer more benefits and flexibility around work-life balance. Additionally, companies are investing in innovative tools and strategies to foster collaboration and creativity among employees.
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Is the offer from the outside supplier financially attractive? YES or NO and Why? RECALCULATE THE UNIT COST WITH THE IMPORTANT (RELEVANT) NUMBERS
Answer:
The answer is "No, the offer is not financially attractive".
Explanation:
Please find the complete question and table in the attachment file.
Costs = 85 dollars
External supplier purchase costs = 101
Its external supplier's bid is not appealing financially. Since a loss of $16 per unit is going to happen. (101 - 85).
The company must produce part T6.
Note: Overhead costs shall not be considered as the cost is irrelevant because they arise even though the part T6 is produced or bought. The price is just $85.
Which is an example of a credible detail that supports your point in a persuasive proposal?
A. Established by the shipment received yesterday, the unit cost will be $1.50.
B. Based on a quick look around, those parts could be available soon.
C. We heard from a customer last year that the product was great.
D. We are confident that we can meet your requirements.
E. I promise the product works.
Option A is correct. Example of credible detail that supports your point in a persuasive proposal Established by the shipment received yesterday, the unit cost will be $1.50.
This is an example of a credible detail that supports a point in a persuasive proposal because it is specific, quantifiable, and can be verified. The cost is established by a shipment that was received yesterday and it's a clear number that can be used in the proposal to make a point. This information is much more convincing than the other options.
B. Based on a quick look around, those parts could be available soon. is not a credible detail because it's not verifiable and it's not based on a proper research.
C. We heard from a customer last year that the product was great. is not a credible detail because it's not verifiable and it's not based on recent feedbacks.
D. We are confident that we can meet your requirements. is not a credible detail because it's not verifiable and it's not based on a specific evidence.
E. I promise the product works. is not a credible detail because it's not verifiable and it's not based on a proper research.
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Buyer Norm had his father put up earnest money in the amount of $4,000. The contract fell through. The sponsoring broker should
The sponsoring broker should release the full amount back to buyer Norm.
The person or organization known as a sponsorship broker is responsible for obtaining sponsorship money for properties Within the sponsorship-marketing industry, sponsorship brokers frequently focus on certain niches.
In Texas, you need to be sponsored by a reputable broker in order to work as a selling real estate agent. To ascertain whether you and the possible sponsors would be a suitable fit, it is crucial to probe when looking for a sponsor.
An agent having their employment broker's license is a sponsored broker. In addition to giving you other economic, marketing, and brand advantages, they are in charge of assisting you during your first few years as an agent. To activate your license, you require a sponsoring broker.
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To install the vinyl liner, it costs $1.95 per square foot. You have $1000 in your budget to spend on the liner installation. What is the largest pool you can get without going over your liner budget
The pools have cylinder shapes with $r 1=24:text:ft radiuses. The average cost of replacing a vinyl pool liner is $2,349.
Most vinyl-lined pools start at between $65,000 and $85,000. Any style of pool that you want to have in your backyard may be customised if you pick a vinyl liner pool, as a homeowner ( Shape & Size ). Over a ten-year period, the upkeep for vinyl-lined pools is around $11,500. Is the pool's liner beginning to appear a touch tattered? Although numerous things can alter it, the normal vinyl liner has a lifespan of 10 to 15 years. Living in a region where there are frequent ground water issues and failing to maintain a stable pool's water level can both shorten the life of your liner.
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Before making any recommendations to a client, basic client suitability information must be gathered. Many suggest beginning with a family balance sheet. Which of the following would be found on that document
The concept here is Net worth. It is the value of all non-financial and financial assets held by a person or entity less the value of all outstanding liabilities.
Net worth is the difference between the assets and liabilities of a person or company. A high level of wealth is associated with good financial strength and ultimately a good credit rating for the person or company.
The balance sheet includes the customer's assets and liabilities. This is used to determine equity. This is an income statement that includes salary and expenses.
Goals are not financial. In a company's financial statements, equity is reported in the Equity section. Equity helps to show the overall financial situation of the company.
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G Find the future values of the following ordinary annuities. FV of $600 each 6 months for 4 years at a nominal rate of 8%, compounded semiannually. Do not round intermediate calculations. Round your answer to the nearest cent. $ FV of $300 each 3 months for 4 years at a nominal rate of 8%, compounded quarterly. Do not round intermediate calculations. Round your answer to the nearest cent. $ The annuities described in parts a and b have the same amount of money paid into them during the 4-year period, and both earn interest at the same nominal rate, yet the annuity in part b earns more than the one in part a over the 4 years. Why does this occur
The future value of an annuity is the amount that a series of repeating payments would be worth at a specified future date, assuming a particular rate of return, or discount rate. The discount rate raises the annuity's future value.
How is an ordinary annuity worth today and in the future?An annuity's future value is the sum that will be attained over time, as opposed to its present value, which is the amount that must be spent now to ensure a desired payment in the future.Fixed, variable, fixed-indexed, immediate, and Deferred annuities are all types of annuities. Which is ideal for you will depend on a number of factors, including your risk tolerance, your income objectives, and the time frame in which you want to start receiving annuity income.For distribution at a later date, a deferred annuity collects premiums and investment changes. Deferred annuities for retirement can stay in the deferred stage for decades, therefore the payout period may be very long. When an immediate annuity is purchased, it is intended to start paying an income immediately.
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The intent of the offeror to extend a serious offer to the offeree is typically determined by reference to O A.The beliefs of the offeror. O B. The intentions of the offeror. O C. The assumptions of the offeror. O D. The words and conduct of the offeror.
The intent of the offeror to extend a serious offer to the offeree is typically determined by reference to D. The words and conduct of the offeror.
The words and actions of the offeror are often used to establish whether or not the offeror intends to make a firm offer to the offeree. Both the offering and the confirmation must be made in a straightforward manner.
The offeror should intend to submit the offer in order for it to be valid. From the perspective of the offeree, it is determined whether there is an intention to make an offer. It is an offer if the words or deeds of the offeror would convince a rational person in the offeree's situation that it is an offer.
A manifestation of acquiescence to the conditions [of the offer] given by the offeree in a way that is invited or demanded by the offer is referred to as an acceptance. Identifying whether an offeree accepts a proposal.
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Which expense is a variable cost?
A) hourly wages for a production employee
B) insurance payment
C) monthly rent on a store
D) purchase of a new copy machine
Hourly wages for a production employee. Variable costs are costs that fluctuate with the level of production or sales and can include expenses such as raw materials, packaging, and wages for production employees.
What is Variable costs?Variable costs are costs that change in relation to the amount of goods or services produced. These costs are typically directly related to production and can include the cost of materials, labor, and other related expenses. Variable costs differ from fixed costs, which remain constant regardless of production levels. Variable costs are important to consider when setting a price for a product, as they should be taken into consideration to ensure that the product is profitable. By understanding variable costs, businesses can adjust production levels to ensure that they remain profitable.
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Answer:
A- Hourly wages for a production employee
Explanation:
Correct anser on my test. Hope this was helpful
Marcus listed his property with Home Sweet Home Realty and one of its listing agents, Ron Savage. About a month later, Ron filed for bankruptcy. Which of the following statements about this situation is true ?
A. Bankruptcy has no impact on agency agreements.
B. Marcus can choose whether or not to continue the listing agreement with Ron.
C. The agency agreement is terminated because the agent filed for bankruptcy.
D. The agency agreement only terminates if the broker or the principal declares bankruptcy.
In the situation when Marcus has listed his property and the agent has become bankrupt, then the agency agreement only terminates if the broker or the principal declares bankruptcy, which means option D is the right answer.
Since Ron Savage is neither a broker nor a principal, he is simply an agent, so the agency agreement in this case will not be terminated. In this case, the agent will not be able to fund the construction processes and all the money of the investors and customers will be at stake. Bankruptcy is the condition when the person has nothing left to pay back the leans taken and so all their valuable assets are sold in a bid to get back the amount. Insolvency and Bankruptcy Code is aimed at protecting the rights of operational and financial creditors.
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Under the negotiated price approach of setting transfer prices, an increase in the purchasing division's operating income is calculated as:
An increase in the operational income of the purchasing division is computed as (Market price - Transfer price) Units transferred under the negotiated price approach to calculating transfer prices.
What exactly is agreed-upon transfer pricing?Negotiated transfer pricing involves firm representatives negotiating rates on their own rather than merely depending on market prices. Learn about the benefits and drawbacks of adopting negotiated transfer price as illustrated by the negotiations between two businesses.
What three different negotiation approaches are there?Five main negotiation strategies are available: accommodating, avoiding, cooperating, competing, and compromise. In a negotiation that is successful, one or more of these several negotiating strategies is typically used. Techniques for negotiation can be useful in both public and private contexts.
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