Suppose an industry is made up of 16 firms. Three firms each sell 12 percent of the industry's total output; another three firms each sell 8 percent; another five firms each sell 5 percent; and the last five firms each sell 3 percent. What is the eight-firm concentration ratio in this industry?
Answers
Answer: The eight-firm concentration ratio in this industry is 0,7.
Explanation: The concentration ratio measures the proportion of total production produced by, in this case, the first eight largest companies in an industry. It is calculated by dividing the market share of the first eight firms in the industry by the total market share.
So: The first 8 firms sell: 3 each 12%. The next 3 each 8%. And thirdly 2 firms each 5%.
Then we calculate: (3x12) + (3x8) + (2x5) = 70% These companies represent 70% of the industry's total output.
So the concentration ratio is = = 0,7
Related Questions
Chambers, Inc. uses flexible budgets. At normal capacity of 16,000 units, budgeted manufacturing overhead is: $64,000 variable and $180,000 fixed. If Chambers had actual overhead costs of $250,000 for 18,000 units produced, what is the difference between actual and budgeted costs?Chambers, Inc. uses flexible budgets. At normal ca$2,000 unfavorable.$2,000 favorable.$8,000 favorable.$6,000 unfavorable.
From Jan. 1, 1960 to Jan. 1, 1985, the historical average annual rate of return in the hypothetical country of Westeros was 12%. The annual standard deviation of the rate of return is 10%. What is the upper bound of the 95.4% confidence interval for the annual rate of return based on this information?a. 16%. b. 10%. c. 12%. d. 14%. e. 8%.
Dunkin Donuts does a lot of taste testing and research and asks for consumer feedback to determine what products to offer. This represents the _____________.
Assume Gillette Corporation will pay an annual dividend of $ 0.61 one year from now. Analysts expect this dividend to grow at 12.9 % per year thereafter until the 6th year. Thereafter, growth will level off at 1.7 % per year. According to the dividend-discount model, what is the value of a share of Gillette stock if the firm's equity cost of capital is 8.8 %?
Answers
Answer:
Explanation:
CODE:
import java.io.*;
class Test
{
public static void main(String[] args) {
File file = new File("input.txt");
try{
BufferedReader b = new BufferedReader(new FileReader(file));
String line;
while ((line = b.readLine()) != null)
{
for(int i=0;i<line.length();i++)
{
char c=line.charAt(i);
if((c>='A' && c<='Z') || (c>='a' && c<='z') || (c>='0' && c<='9')) //check if char is digit or alphabet
System.out.print(c);
else
System.out.println("\n"+c);
}
}
}
catch(Exception e)
{
System.out.println(e);
}
}
}
Answers
Answer:
$101,200
Explanation:
First, we need to calculate the total contribution margin per unit
Contribution margin per unit = 99,000 ÷ 4,500
Contribution margin = $22 per unit
Then, we will multiply with the units sold to get the budgeted contribution margin
= Units sold × Contribution margin per unit
= 4,600 × $22
= $101,200
Therefore, its total contribution margin should be closest to $101,200
ended December 31, 2024, Aloof Company earned income of
$180,000 and paid dividends of $10,000. On January 31 2045,
Whitworth Company sold all of its investment in Aloof Company
stock for $405,000.
Answers
Answer:
Journal entries needed for:
a. Purchase of stock
b. Share of Aloof income
c. Dividend
d. Sale of Aloof company stock
a. Purchase of stock
Date Account Title Debit Credit
Jan 2, 20Y4 Investment in Aloof company $340,000
stock
Cash $340,000
b. Share of Aloof income
Date Account Title Debit Credit
Dec 31, 2024 Investment in Aloof company $72,000
stock
Income of Aloof Company $72,000
Working:
= 40% * 180,000 income
= $72,000
c. Dividend
Date Account Title Debit Credit
Dec 31, 2024 Cash $4,000
Investment in Aloof company $4,000
stock
Working:
= 40% * 10,000 dividend
= $4,000
d. Sale of stock
Date Account Title Debit Credit
Dec 31, 2024 Cash $405,000
Loss on sales of Aloof $3,000
company stock
Investment in Aloof company $408,000
stock
Working:
Value of stock = Purchase price + share of Aloof income - Share of dividend
= 340,000 + 72,000 - 4,000
= $408,000
Final answer:
The question from the field of business involves interpretation of financial accounting situation where Whitworth Company acquired stock in Aloof Company and later sold it. The income and dividends of Aloof Company have implications on Whitworth Company's accounting statements. The sale of investments will be accounted for as a gain or loss.
Explanation:
The subject of this question is in the field of Business, specifically financial accounting and it appears to be of College grade level. The question requires an understanding of how to account for investments in another company's stock.
When Whitworth Company acquired 40% of Aloof Company's outstanding stock, it made an investment of $340,000.
For the year ended December 31, 2024, Aloof Company's earned income of $180,000 will proportionally impact Whitworth's net income due the equity method of accounting. Whitworth will then account for 40% of the $180,000, which is $72,000, in its income statement.
Also, the dividends paid by Aloof company are not income to the investor but return of investment. So, Whitworth will decrease its investment account by 40% of $10,000 ($4,000).
Finally, in 2045, when Whitworth sold its investment in Aloof Company's stock for $405,000, the difference between the selling price and the initial price will be accounted as gain or loss. In this case, it will be a gain of $65,000 ($405,000 - $340,000).
Learn more about Financial Accounting here:
#SPJ3
(B) manages transportation and warehousing functions.
(C) consumes about one-half of every dollar spent on products in the United States.
(D) links producers to other marketing intermediaries.
(E) directs the flow of products from producers to customers.
Answers
Answer:
Option E
Explanation:
In simple words, A marketing channel refers to the individuals, organizations, and practices that are required to complete the sale of commodities from the point of manufacturing to the points of consumption.
It is the manner in which products reach the final-user, the consumer; and is also regarded as a method of delivery. A communication platform is a valuable management tool and is essential to the creation of an efficient and well-prepared marketing strategy.
Thus, from the above we can conclude that the correct option is E.
Answers
Answer:
The sales revenue would be 170,000 if Hammer Time implements the decrease in selling price.
This would generate a decrease of $10,000 in the sales revenue
Explanation:
Understanding the way sales revenue is generated:
If the selling price drops to $10
and units sold increase by 5,000
Comparing with the previous year:
This policy decrease the sales revenue which makes the business less profitable.
Answers
Answer:
price of the payoff is -$19.01
Explanation:
The computation of the price of payoff is shown below:
But before that we have to do the following calculations
Equation of payoff is
= -$200 + 3 × current price
Now
price of payoff is
= -$200 ÷ (1.02)^(3 ÷ 12) + 3 × $60
= -$199.01 + $180
And, finally
The price of the payoff is -$19.01
The same is to be considered