If incomes increase during a period of expansion, goods considered to be inferior will experience:
<h3>What are inferior goods?</h3>
Inferior goods are those types of goods that consumers have little or no interest in. These goods are mostly sought after when the economy is tough and people have no option but to purchase them.
However, when the economy improves and there is an expansion, people will naturally return to the goods that they believe have superior quality. When they make this move, the inferior goods will experience a decrease in demand.
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Answer:
$3.72
Explanation:
earnings per common share = earning attributable to holder of common stock ÷ weighted average number of common stocks outstanding
therefore,
earnings per common share = $3.72
Answer:
A home improvement store that just began business last year and had $2.7 million in gross receipts.
Explanation:
The IRS allows only a limited number of businesses to use cash basis accounting and in order to do so, the business must be:
- Partnership or C corporation with less than $5 million in total sales revenue per year
- Sole proprietorship or S corporation with less than $1 million in total sales revenue
- Cannot be a publicly traded corporation
- Personal service businesses with more than 95% of revenue specifically related to services.
- Family owned farms with total annual sales revenue less than $25 million.
Answer:
D. More Units may be sold - but total revenue will be less than it would be at the higher price
Explanation:
Marginal Revenue (MR) represents the additional revenue that can be obtained if sales of a product are increased by one unit.
MR= is change in Total Revenue/Change in Total Output Quantity
In this situation as envisaged by the Marketing Manager, a price cut will lead to an increase in revenue based on more (marginal) units of the product sold at a lower price. The challenge, however, is that this increase in income will not be enough to offset the decrease in revenue that will result as a result of the price cut.
In other words, the organisation is better off selling fewer products or units at its current price than sell more (marginal units) at a reduced price.