Western farmers and ranchers were upset with the government in 1890 when they raised the tariff rate, which led to a steep decline of beef and crop exports.
A tariff is a levy imposed on the import or export of products by the government of a nation or by a supranational union. Import tariffs can regulate international trade and serve as a means of supporting or defending home business in addition to providing the government with cash. Along with import and export restrictions, as well as other non-tariff trade obstacles, protective tariffs are some of the most often employed instruments of protectionism.
Tariffs can be either fixed (a fixed amount per unit of imported products or a defined proportion of the price) or variable (the amount changes in accordance with the pricing).
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which one of the following risks does not apply to preferred stock?
Unlike other investment kinds, like bonds, preferred stock does not have the same risks. Due to the absence of interest payments and expiration dates, preferred stock does not have the same default risk as bonds.
Preferred stock, also known as preferred shares, preference shares, or simply preferreds, is a part of share capital that may include any combination of attributes not found in ordinary stock, such as traits of both an equity and a debt instrument. In general, preferred stock is thought of as a hybrid instrument. Preferred stocks are subordinate to bonds but senior to common stock in terms of claim (or rights to their part of the company's assets, providing that these assets are receivable to the returnee stock bond). Furthermore, when it comes to dividend payments and liquidation, preferred stocks may be given preference over common stock (also known as ordinary shares). The terms of the preferred stock are set forth in the articles of association or articles of incorporation of the issuing company.
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A cost may be direct or indirect, depending on the cost object.a. True
b. False
The given statement is true.
Indirect costs are those associated with sustaining and running a business, whereas direct costs are those that can be linked to a specific product. If you can classify one‟s costs properly, you will as a business owner have a greater idea of how to set pricing.
Direct labor, direct materials, kickbacks, piece rate wage levels, and manufacturing supplies are a few examples of direct costs. Payroll for production supervisors, quality control expenses, insurance, and depreciation are a few examples of indirect costs.
Accounting and legal costs, executive salaries, office expenses, rents, security charges, telephone prices, and utility costs are a few examples of indirect costs. Direct costs are expenses connected with a particular cost object. A business, person, geographical region, or other thing for which expenses are tallied is referred to as a cost object.
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TRUE/FALSE. in maryland, you could be fined up to $1,000 per solicitation if you use this method to advertise and a prior business relationship does not exist.
In Maryland, if you use a fax machine to promote and a prior business relationship is not present, you might be fined up to $1,000 per solicitation.
"Junk faxes" are faxes that you receive that are unsolicited marketing. Sending junk faxes through fax machine is often prohibited by FCC regulations under the Telephone Consumer Protection Act and the Junk Fax Prevention Act. If you granted permission, businesses may fax you an advertisement. In all other cases, you and the fax sender must already have a working business connection (based on an inquiry, application, purchase or transaction). If you granted permission, businesses may fax you an advertisement. In all other circumstances, you and the sender of the fax must already have an established working relationship (resulting from a request, application, purchase, or other transaction), and the sender must have acquired your fax number in one of the following ways:
1. Straight from you in the context of the already-existing business connection, such as as part of an application, contact information form, or membership renewal form.
2. From a directory, advertisement, or website when the sender took reasonable measures to confirm that you gave approval for the number to be included and you freely agreed to make it available for public dissemination.
3. From your own directory, ad, or website, unless it is explicitly stated that you don't accept unsolicited fax advertisements.
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cost centers can be a drain on an organization. could internal charge backs be implemented? present specific ideas.
Yes, internal charge backs can be implemented to help mitigate the impact of cost centers on an organization.
Internal charge backs are a mechanism that allocates the costs of a cost center back to the departments or business units that are responsible for generating those costs.
Here are some specific ideas for implementing internal charge backs in an organization:
1) Develop a clear understanding of the costs associated with each cost center. This includes not only direct costs but also indirect costs such as overhead.
2) Establish a clear allocation method for each cost center. This should be based on a fair and reasonable method of allocating costs, such as the use of activity-based costing or cost driver analysis.
3) Implement a system for tracking and reporting the costs of each cost center. This may include using a software system, such as an enterprise resource planning (ERP) system, or a manual system using spreadsheets.
4) Communicate the internal charge back system to all business units and departments. This should include how the costs are calculated and how the charges are to be paid.
5) Regularly review and adjust the internal charge back system as necessary. This may be necessary due to changes in the organization's structure, changes in the cost centers, or changes in the methods used to allocate costs.
By implementing internal charge backs, an organization can better control the impact of its cost centers on its financial performance, and ensure that each business unit is held accountable for its own expenses.
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the marginal opportunity cost of producing a bushel of oranges in mexico is
The marginal opportunity cost is the cost of giving up the opportunity to produce one more unit of a good or service, in terms of the next best alternative use of the resources used to produce that unit.
In the case of producing a bushel of oranges in Mexico, the marginal opportunity cost would be the cost of giving up the opportunity to produce the next best alternative good or service using the same resources that are used to produce the additional bushel of oranges. For example, let's say that in Mexico, the resources used to produce a bushel of oranges can also be used to produce a certain amount of avocados. The marginal opportunity cost of producing a bushel of oranges would be the cost of giving up the opportunity to produce the next best alternative good, which in this case would be the avocados. If the cost of producing a bushel of avocados is higher than the cost of producing a bushel of oranges, then the marginal opportunity cost of producing a bushel of oranges would be the cost of producing a bushel of avocados.
In conclusion, the marginal opportunity cost is a key concept in economics that helps to determine the most efficient use of resources. It provides a measure of the cost of giving up the opportunity to produce the next best alternative good or service, and helps to guide decisions about resource allocation.
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bausch company is presented with the following two mutually exclusive projects. the required return for both projects is 15 percent. year project m project n 0 –$141,000 –$364,000
$33,000 $45,000,2 $33,000 $45,000,3 $33,000 $45,000, The corporation needs to compute the net present value (NPV) of each project to determine which is more profitable.
Goals, objectives, and the general strategy should be the main points of the description; task lists, in-depth historical context, or research analysis are not required. The project description is generally general; the project plan will contain more specific information. A project is just a set of tasks that must be finished in order to achieve a particular goal. A project may alternatively be described as a collection of inputs and outputs necessary to accomplish a specific objective. Projects can be managed by one person or one hundred, and they can be simple or complex.
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select the four principles that underlie the strategic marketing process.
The four principles that underlie the strategic marketing process are customers are different, customer change, competitors change and react and organizational resources are limited.
Research is conducted as part of the strategic marketing process, and targets and objectives are set in order to maximize the success and efficiency of your overall marketing plan. This procedure is advantageous since it enables you to market with greater intention.
Strategic marketing analysis, marketing mix planning, marketing implementation, and marketing control make up the four steps of the marketing process.
A Marketing Strategy's Elements
The client segment to which all marketing efforts are focused is known as the target market.
Business Offering: The goods or services that the company provides.
Competitive advantage: The unique selling point that sets a company apart from its rivals.
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according to most management researchers, the modern study of management originated in which century? a)the 20th century b)the 18th century
According to most management researchers, the modern study of management originated in the 19th century. The correct option is D.
Who is the father of modern management?Drucker is known as the Father of Modern Management. Peter F. Drucker is known as the "Father of Modern Management," and he has been a force in the field for over 50 years. His book The Practice of Management, first published in 1954, has since become a valuable resource for business leaders all over the world.
Management is thought to have originated with Frederick Winslow Taylor, a man whose single-minded obsession with efficiency resulted in the original management theory of note: Scientific Management, but whose deterministic thinking has been superseded by a greater concern for people and the environment.
Thus, the ideal selection is option D.
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Your Question is incomplete most probably your complete Question was:
According to most management researchers, the modern study of management originated in which century? The 20th century O The 18th century O The 21st century The 19th century
you are engaged in the control quality process of a project designed to build the world's smallest car. the development of the car has been plagued with issues. the spi of the project is currently 0.61 and there are no additional funds available in the budget. at this point in the project, the car has been fitted with secondary systems such as suspension and brakes, but the power train has yet to be installed. this delay has prevented any electrical systems from being installed. which impact will this have on the quality tests related to this process? answers a. testing will need to be changed to reflect the work performance data b. fast-track the schedule and then perform the required quality assessments c. crash the schedule and then perform the required quality assessments d. quality testing will be incomplete, and the data will be inconclusive
Going over the critical route and determining which tasks may be completed concurrently is the first step in using fast-tracking in project management.
Is crashing an expenditure increase that enables a project to be completed more quickly?When you cut the time required for one or more activities inside a project, this is known as project crashing. Crashing is accomplished by adding more resources to the project, which helps tasks finish sooner than they were expected to. Naturally, this raises the whole project's cost.
Which is better between the quick tracking method and the crashing method?The distinctions between crashing and fast tracking are, in essence: Fast tracking entails the execution of tasks concurrently, whereas crashing entails the addition of resources to a project.
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list at least one scheduling tool to keep the project on track. in 1-2 sentences, describe how you can use the tool.
Gantt charts provide a visual representation of a project's timetable and its tasks in a condensed manner.
What resources are available for project scheduling?Tools and methods for project schedulingtask listing The simplest project schedule is this one.Structure for work breakdown (WBS).Gantt graph.It has all the tools you require to maximize productivity and handle any assignment with ease. This includes the work that is scheduled to be done each day as well as the start and finish dates of a project and its subsequent activities.
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Opportunity costs are a large factor in individual decision-making. Please sort the statements according to whether or not they have an opportunity cost.Has an opportunity costHaving a "lazy afternoon"Working an 8 hour shiftCooking dinnerEating outReading you favorite bookCatching up with an old friendDoes not have an opportunity costNothing
has a cost of opportunity
• Being "lazy afternoon" against Cooking dinner versus working an 8-hour shift versus eating out, reading your preferred book, and meeting together with an old acquaintance
Opportunity costs are the additional expenses or benefits foregone when selecting one course of action or investment over another. In other words, the opportunity cost of not doing something else is factored into every action you do. Whatever we do, we have the option of doing something different. The value or advantage forfeited by engaging in a specific activity in comparison to engaging in a different activity is known as the opportunity cost in microeconomic theory.
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a symbol is defined as a numerical representation of a device or object. T/F
A symbol is defined as a numerical representation of a device or object. Symbolic representation do not share physical characteristics with the objects they represent.False.
Symbolic representation, to put it simply, is the mental association that humans make between two things or any entity, even while there is no actual relationship between them in terms of appearance or attribute. The symbolic representation is just a simple tool for making anything understandable.A symbol in computer programming is a primitive data type whose instances have a unique human-readable form. Symbols can be used as identifiers. In some programming languages, they are called atoms. Uniqueness is enforced by holding them in a symbol table.
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Which of the following are used to achieve operational excellence? (Select all that apply.)
Supply chain management
Loyalty programs
Branding and positioning
Operations
Good options are Supply Chain Management and Operational Excellence.
are used to achieve operational excellence from the given options.
To have a product with high perceived value and effective branding and positioning. Operational excellence is a management strategy that involves maximizing the efficiency of processes within an organization. It is more reliable and performs better than its competitors. “Operational Excellence consists of four main categories. This includes strategy development, performance management, high-performing work teams and process excellence,” said Peter, CEO of training company Global Six Sigma and president of the International Society of Six Sigma Professionals. says Peterka.
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Within the food industry, a growing trend is locavorism, which means consumers actively look for products that come from farms within _____ miles of where they live.
A country's GDP is significant because it provides data on the size and health of the economy. Real GDP growth is frequently taken into account when assessing the state of the economy as a whole. A rise in real GDP is generally considered to be a positive indicator of the health of the economy.
What is GDP growth?GDP gauges the monetary value of finished products and services—those purchased by the consumer—produced in a nation over a specified time period (say a quarter or a year). The total output produced inside a nation's boundaries is measured. GDP is made up of both market-oriented production—i.e., products and services produced for sale—and nonmarket production—i.e., government-provided services such those in the areas of military or education. Gross national product, sometimes known as GNP, is a different term that measures all of a nation's production from its citizens. Therefore, if a German-owned business operates a factory in the United States, its output would be counted toward German GNP rather than U.S. GDP.GDP does not account for all forms of production. For instance, because they are challenging to assess and precisely value, black-market activities and unpaid employment (such as those carried out at home or by volunteers) are not included. Thus, a baker who makes a loaf of bread for a client would contribute to GDP, but if he made the same loaf for his family, he would not (although the ingredients he purchased would be counted).Additionally, "gross" domestic product ignores the "wear and tear" on the equipment, structures, and other assets (the so-called capital stock) that are used to create the production.We can obtain net domestic product by subtracting this depletion of the capital stock, or depreciation, from GDP.To Learn more About GDP growth Refer TO:
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Assume that kubin company produced 20,000 units and expects to sell 19,800 of them. If a new customer unexpectedly emerges and expresses interest in buying the 200 extra units that have been produced by the company and that would otherwise remain unsold, what incremental selling and administrative cost per unit is incurred to sell these units to the customer?.
Incremental cost: This is the cost which is added or incurred by producing an additional unit product or providing extra service.
Incremental cost is the amount of money it would cost a company to make an additional unit of product.
Companies can use incremental cost analysis to help determine the profitability of their business segments.
The incremental manufacturing cost/unit incurred to sell extra units to the customers is 0. This is because 200 extra units were already produced and was supposed to be remain unsold as out of 20000 units only 19800 units were expected to be sold.. But the customer unexpectedly came and demanded 200 units which otherwise would have been unsold.
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TRUE/FALSE. value-oriented marketers engage in an ongoing process of balancing
Marketers who prioritize value do regular cost-benefit analyses of their products and services. views the connection between the buyer and seller as a collection of discrete transactions, with minimal relevance to events that occurred before or after the transaction.
Value-driven marketers are always comparing the benefits that clients believe they are receiving to the price of their products. They uncover possibilities to better serve their customers' requirements, control expenses, and foster lifelong loyalty by using the customer data that is now available. Value marketing sometimes referred to as customer-centric marketing, is focused on tactics that aim to surpass clients' expectations and encourage customer loyalty to achieve customer success. Value marketing strategies seek to convert consumers into ardent advocates who will use their positive testimonials to spread the word about goods and services.
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which of these describes the result of a modified endowment contract
Pre-death distributions are typically taxable describes the result of a modified endowment contract that failed to meet the seven-pay test
Modified endowment contracts (MEC) differ from regular life insurance policies in how pre-death dividends are taxed because they are typically used as investment vehicles. To sell variable annuities, a life insurance producer must be in possession of a securities license.
The surviving spouse of an IRA owner who has passed away may use the IRA as his or her own IRA, or they may decide to continue functioning as the beneficiary and distribute the assets in accordance with the 10-year rule or the single life expectancy rule .
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The correct question is :
Which of these describes the result of a modified endowment contract that failed to meet the seven-pay test?
while managing the execution of a project, one of the project stakeholders comes to you worried about the availability of materials for fabricating an air frame from the regular vendor. you let the stakeholder know that you will check into this further for him. a couple of days later, you respond back to him that you are waiting for a call from the supplier and have been in contact with several other vendors. the other vendors who supply the same materials have plenty in stock. what are you currently engaged in with the stakeholder? answers a. planning how to deal with the possibility that the materials may not be available b. identifying stakeholder requirements c. removing any obstacle that may prevent acquiring the necessary materials d. managing expectations of a stakeholder
Managing a stakeholder's expectations.
The project manager should take action to manage stakeholder expectations by addressing issues before they become major ones.
What is a stakeholder?
A stakeholder is any person, group, or organisation whose interests are affected by the success or failure of a project or business venture. Stakeholders can be inside or outside the company funding the project, and they all have a vested stake in the project's success. Stakeholders are significant because their choices can positively or negatively affect the project. There are additional crucial or important stakeholders, whose backing is necessary for the project to proceed. Like any other team member, a stakeholder is a person, and some are simpler to manage than others. To determine who your important stakeholders are and make sure you satisfy their needs, you'll need to understand how to employ stakeholder mapping strategies.
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salma contributes $100 cash to her city's police department to be used as a reward for information about a crime. the city police department is a qualified organization, and her contribution is for a public purpose. salma can deduct what amount of her contribution on her income tax return?
Which of these nations had a lower GNI per capita than the United States in 2019?
India had a lower GNI per capita than the United States in 2019.
GNP is defined as gross domestic product + net receipts from abroad of employee compensation, property income, and net taxes less production subsidies.
Compensation of employees receivable from abroad is earned by residents who essentially live within the economic territory but work abroad (this occurs on a regular basis in border areas) or by people who live and work abroad for short periods of time (seasonal workers) and whose center of economic interest remains in their home country.
Interest, dividends, and all (or a portion of) retained earnings of foreign firms owned entirely (or partially) by resident enterprises include property income receivable from/payable to abroad (and vice versa).
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Correct question:
Which of these nations had a lower GNI per capita than the United States in 2019?
a) India
b) Switzerland
c)Ireland
d0 Norway
how many times are customers able to make a payment via a payment link before it expires?
The number of times customers are able to make a payment via a payment link before it expires depends on the specific payment system or service being used. Different payment providers may have different policies and settings regarding payment link expiration and usage limits.
In many cases, payment links are designed for one-time use only. Once the customer completes a payment using the link, it may become invalid or expired. This approach helps ensure security and prevents unauthorized access or multiple payments from a single link.
However, it's important to note that payment providers may offer options or configurations that allow for multiple payments or extended validity periods for payment links.
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key west inc. manufactures inflatable kayaks. each kayak sells for $350. at a production level of 10,000 units, the total variable manufacturing cost is $1,200,000 and the fixed manufacturing cost in total is $420,000. at this level of activity, the company will incur variable selling and administrative costs of $900,000 and fixed selling and administrative costs of $770,000. how many units have to be sold to break even?
The company will incur variable selling and administrative costs of $900,000 and fixed selling and administrative costs of $770,000. The many units have to be sold to break even 8,500.
How much do I need to sell to make a profit?The total of the unit's fixed cost and variable cost incurred to produce the product, for instance, would be the break-even price for selling the product. Therefore, the break-even price is the price at which a product sells for exactly what it costs to make it (20 dollars).
How do you calculate the required number of units sold?Subtract the unit price from the total amount of sales you need to make. You can use this to determine how many units you need to sell to make your desired net income. You can adjust your estimated net income figure either upwards or lower to determine how many units you would need to sell at various income levels.
How many units are need to break even?The number of goods or services a business must sell to break even, or in other words, to avoid financial losses but also to lose money, is known as the breakeven number of units.
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Deacon company offers a discount on an extended warranty on its laptops when the warranty is purchased at the time the laptop is purchased. The warranty normally has a price of $146, but deacon company offers it for $118 when purchased along with a laptop. Deacon company anticipates a 75% chance that a customer will purchase the extended warranty along with the laptop. Assume deacon company sells to 1,000 laptop with the extended warranty discount offer. What is the total stand-alone selling price that deacon company would use for the extended warranty discount option for purposes of allocating revenue among the performance obligations in those 1,000 laptop contracts?.
The total stand-alone selling price that the deacon company would use for the extended warranty discount option is $10,354,500 .
Deacon Company would utilize the total stand-alone selling price.
= $117,000 ($118 x 1,000 x 0.75)
= $117,000 ($88,500)
= $10,354,500
The extended warranty discount option in order to divide income among the performance obligations in those 1,000 laptop contracts.
The price a reporting entity charges for that good or service when it sells it separately in comparable conditions to comparable consumers is the best indication of standalone selling price.
But not usually are products or services sold individually. If the good or service is not marketed separately, the solo selling price must be estimated or determined through other means.
When specialized items or services are only sold as part of a packaged arrangement, for example, this estimate frequently calls for judgment.
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what are the total credit sales for the month of july for industry a?
When a consumer purchases goods or services from a business using credit rather than cash, the transaction is referred to as a "credit sale."
In contrast to net credit sales, which account for each of these variables, gross credit sales ignore any decreases resulting from client returns, discounts, and allowances.
Credit sales are transactions in which the debt will be paid in full at a later time.
Credit sales are a sort of transaction in which businesses grant clients credit in exchange for the purchase of products.
It does not require customers to put their own money into a firm and offers them time to complete the payment after selling the things they purchased. It benefits small firms, particularly those that lack sufficient funding. Additionally, it benefits large businesses by drawing in consumers.
When a sale is made on credit, the debtor might pay for the products or services at a later time, according to a different arrangement. If so, it is paid the following month after the sale.
Explanation:
The journal entry is shown below:
Bank credit card sales A/c Dr XXXXX
Credit card expense A/c Dr XXXXX
To Sales A/c XXXXX
(Being the sales is recorded via bank credit cards)
As the credit card has some expense so we debited the credit card expense along with the bank credit card sales and credited the sales as it is revenue which is to be credited.
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Who pays fees to private employment agencies?a. Employers onlyb. Applicants onlyc. Both employers and applicantsd. Neither employers nor applicants.
Answer:
Employment agency fees are paid by a company to an employment agency when it successfully places a suitable employee with that employer. With employer-paid fees, the employer pays the fee to the agency, so the employee pays nothing.
Explanation:
Foster Industries has a project that has the following cash flows: Year Cash Flow 0 -$300. 00 1 100. 00 2 125. 43 3 90. 12 4 ? What cash flow will the project have to generate in the fourth year in order for the project to have a 15% rate of return?
The cash flow that needed to be generated in order to have a 50% return rate is $458.96 in the fourth year.
Initially the cash flows are$300, $1100, $2125.43, $390.124.
A return in finance is a profit on an investment. It includes any change in the investment's value and/or cash flows received by the investor, such as interest payments, coupons, cash dividends, stock dividends, or the payout from a derivative or structured product. A loss rather than a profit is referred to as a negative return if the amount invested is larger than zero.
To compare returns across time periods of varying durations on an equal footing, each return should be converted into a return over a standard length of time. The rate of return is the outcome of the conversion.
Show from the formula let us suppose the 4 year investment is X dollars
so, x - 390.124 / x = 15%
= x - 390.124/x = 0.15
= x - 0.15x = 390.124
= x = $ 458.96
Hence the cash flow in the 4th year will be $458.96.
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how did the corpoate culture of enron contribute to its bankruptcy
Enron's corporate culture was characterized by a focus on short-term profits, excessive risk-taking, and a disregard for ethical behavior.
This culture, along with inadequate regulation and auditing, allowed senior executives to engage in fraudulent accounting practices that concealed the company's financial struggles.
This ultimately led to the collapse of Enron and one of the largest corporate bankruptcies in history.
The lack of transparency, accountability, and integrity within Enron's corporate culture created an environment where unethical behavior was tolerated and encouraged, ultimately leading to the company's downfall.
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is the value proposition and business model of govworks compelling?
A value proposition is a statement that describes the unique value that a business offers to its customers. The business model of a company refers to the way in which it creates and delivers value to its customers and generates revenue.
Whether the value proposition and business model of Govworks are compelling depends on a number of factors, including the company's target market, its competition, and the needs and preferences of its customers.
In order to determine if the value proposition and business model of Govworks are compelling, it is important to consider the following:
Customer needs: Does Govworks offer a solution to a problem or meet a need that its customers have?Competitor analysis: How does Govworks compare to its competitors in terms of the value it offers and its ability to generate revenueRevenue generation: Does the business model of Govworks allow the company to generate sufficient revenue to support its operations and growthMarket fit: Does Govworks have a strong fit with its target market, or is there room for improvement in terms of its value proposition and business modelUltimately, whether the value proposition and business model of Govworks are compelling is subjective and depends on individual perspectives and evaluations. However, by considering the above factors, one can gain a better understanding of the strengths and weaknesses of the company's value proposition and business model.
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akeshore cinemas is considering a contract to rent a movie for $1,980 per day. the contract requires a minimum one-week rental period. estimated attendance is as follows: monday tuesday wednesday thursday friday saturday sunday 450 300 200 550 1,000 1,000 500 required determine the average cost per person of the movie rental contract separately for each day. suppose that lakeshore chooses to price movie tickets at cost as computed in requirement a plus $3. what price would it charge per ticket on each day of the week? use weekly averaging to determine a reasonable price to charge for movie tickets.
Using weekly averaging, a reasonable price to charge for movie tickets is $7.63.
Akeshore cinemas are considering a contract to rent a movie for $1980 per day.
Now to calculate the average cost per person of the movie contract separately for each day we need to divide movie rent per day by estimated attendance and to calculate the price per ticket each day, we need to add the average cost per person with $3.
Day Attendance Average cost Price per ticket
per person
Monday 450 $4.40 $7.40
Tuesday 300 $6.60 $9.60
Wednesday 200 $9.90 $12.90
Thursday 550 $3.60 $9.60
Friday 1000 $1.98 $4.98
Saturday 1000 $1.98 $4.98
Sunday 500 $3.96 $6.96
Now,
Weekly average = ($7.4 + $9.6 + $12.9 + $9.6 + $4.98 + $4.98 + $6.96)/7
= $7.63.
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martha can produce quilts or batches of chocolate chip cookies in a month. jane can produce quilts or batches of chocolate chip cookies in a month. distinguish between comparative advantage and absolute advantage.
Martha produces more quilts and batches of chocolate chip cookies than anyone else using the same resources and time, giving her a clear advantage in both products.
Opportunity cost is calculated by diving the opportunity sacrificed by not producing a good by the opportunity gained by producing some other good.
Opportunity cost for Martha is given by:
Opportunity cost of producing a batch of chocolate chip cookies[tex]=\frac{70}{140} =0.5[/tex] quilts
Opportunity cost of producing a quilt =[tex]\frac{140}{70} =2[/tex] chocolate chips
Opportunity cost for Jane is given by:
Opportunity cost of producing a batch of chocolate chip cookies[tex]=\frac{8}{24} =0.33[/tex] quilts
Opportunity cost of producing a quilt = [tex]\frac{24}{8} =3[/tex] chocolate chip cookies.
As a result, Jane has a comparative advantage in producing batches of chocolate chip cookies because Jane's opportunity cost for producing a batch of cookies is lower than Martha's, and Martha has a comparative advantage in producing quilts because her opportunity cost for producing a quilt is lower than Jane's.
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The complete question is:
Martha can produce 70 quilts or 140 batches of chocolate chip cookies in a month. Jane can produce 8 quilts or 24 batches of chocolate chip cookies in a month. Distinguish between comparative advantage and absolute advantage.