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myleefaustin
14.07.2021 •
Business
Both UTech Inc. and Mirco Corp. incur a cost of $200 to manufacture a single unit of a cell phone. However, UTech Inc. charges a higher price than Mirco Corp. does, but it still sells a higher number of phones. What does this imply
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Ответ:
UTech Inc. creates more economic value than Micro Corp. does.
Explanation:
Economic value refers to the measure of the benefit that an economic agent such as an individual, firm or government gets when a good or service is consumed.
In this case, since consumers derive more economic value from the good, even though it's costlier, they'll be willing to pay a higher price.
Therefore, UTech Inc. creates more economic value than Micro Corp. does.
Ответ:
Jennifer
The return on investment of the Gamma stock is:
a) 7%
Explanation:
a) Data and Calculations:
January 1, 20X1 Purchase of common stock of Gamma Corporation = $100,000
Dividend received from Gamma Corporation stock = $3,000
December 31, 20X1, Sale of Gamma Corporation stock = $104,000
Capital gains from the sale of Gamma stock = $4,000 ($104,000 - $100,000)
Total returns from the Gamma stock = Dividend Plus Capital Gains
= $7,000 ($3,000 + $4,000)
Return on investment of the Gamma stock = 7% ($7,000/$100,000 * 100)