Introduction to Business
OER 2018 Edition
ISBN: 9781947172548
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 1.3, Problem 1CC
What is economics, and how can you benefit from understanding basic economic concepts?
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Dr Z. Mthembu is the owner of Mr Granite, a business in the Western Cape. After more than 28 years of operation, the business is thinking about taking on a new project that would provide a profitable new clientele. With only R1.5 million in resources, the company is now working on two competing projects. The starting costs for Project X and Project Y are R625,000 and R600000, respectively. These projected are estimated for the next 7 years timeframe. According to SARS, the tax rate is 28%, and a discount rate of 11.25% is applied.Projects X Project YProject X Project Y129000 145000154000 145000312000 145000168000 14500098250 14500088750 14500016050 145000
Alessandra Manufacturing produces various electronic components. Last year, the company's variable costing net operating income was $92,400, and ending inventory increased by 1,800 units. Fixed manufacturing overhead cost per unit was $5. Determine the absorption costing net operating income for last year.
Green, an individual taxpayer, who is not a day trader, has requested assistance from a CPA to calculate Year 2 gains and/or losses on the sale of various shares of stock. For each of the following transactions, calculate the correct gain or loss and enter the amount in the associated box in the Gain or Loss column.
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2. Sold 200 shares of Y Corp. stock at $22 per share. Green received the 200 shares as a gift from his brother three years ago, when the shares had a fair market value of $26 per share. Green's brother purchased the stock for $16 per share.
3. Sold 450 shares of Z Corp. stock at $40 per share. Green received the 450 shares from his aunt's estate as a bequest. The fair market value of the stock at the date of his aunt's death was $32 per…
Chapter 1 Solutions
Introduction to Business
Ch. 1.1 - Explain the concepts of revenue, costs, and...Ch. 1.1 - What are the five factors of production?Ch. 1.1 - What is role of an entrepreneur is society?Ch. 1.2 - Define the components of the internal and the...Ch. 1.2 - What factors within the economic environment...Ch. 1.2 - Why do demographic shifts and technological...Ch. 1.3 - What is economics, and how can you benefit from...Ch. 1.3 - Compare and contrast the world's major economic...Ch. 1.3 - What is the difference macroeconomics and...Ch. 1.4 - What is a business cycle? How do businesses adapt...
Ch. 1.4 - Why is full employment usually defined as a target...Ch. 1.4 - What is the difference between demand-pull and...Ch. 1.5 - What are the two kinds of monetary policy?Ch. 1.5 - What fiscal policy tools can the government use to...Ch. 1.5 - What problems can a large national debt present?Ch. 1.6 - What is the relationship between prices and...Ch. 1.6 - How is market equilibrium achieved? Describe the...Ch. 1.6 - Draw a graph that shows an equilibrium points for...Ch. 1.7 - What is meant by market structure?Ch. 1.7 - Compare and contrast perfect completion and pure...Ch. 1.7 - How does an oligopoly differ from monopolistic...Ch. 1.8 - What steps can companies take to benefit from the...Ch. 1.8 - Why is the increasing demand for energy worldwide...Ch. 1.8 - Describe several strategies that companies can use...Ch. 1 - Ethics Activity Historically, diesel cars have not...Ch. 1 - What are some advantages of Walmart purchasing...Ch. 1 - What impact is Walmart's acquisition of...Ch. 1 - How will the aggressive e-commerce plan...
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