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If the firm produces 5 units that it sells at a price of 30 each what will its profits or losses equal?
Wiki User
∙ 6y ago
You are not providing enough information for an answer. We know what they are selling for, but you did not say how much they cost to produce. Profit is how much more they sell for that what they cost to produce. If each cost 25 to produce, and sold for 30, then the profit of each sale is 5, or 25 if you sell 5 of them. If each cost 35 to produce, and sells for 30, you lose 5 on each sale.
Wiki User
∙ 6y ago
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The convention of conservatism takes into account all prospective profits but leaves all prospective losses?
According to this concept "expected losses are losses but expected gains are not gains". On the basis of this concept closing stock is valued at cost price or market price, whichever is lower. Provision for bad and doubtful debts are maintained.
What is the formula for profit percentage?
Profits, as a percentage of total sales is 100*profits/value of sales.profit/cost price x 100
Does a reduction in share price decrease company profit?
No, a reduction in a company's share price has no effect on the company's profits.
What is a capital gains tax?
It is possible to make profits by buying shares, property etc. at a low price and then selling at a higher price. Profits made in this way are called capital gains and are subject to tax by the government. Profits mad ein this wayare called capital gains and are subjectto tax by the government. Profits made on anindividual's home, private cars and assurance policies are not subject to capital gains tax. Hope this was helpful! -Pinkmouse
What is an example of the contribution margin?
For example, if the per-unit variable cost is $15 and selling price per unit is $20, then the contribution margin is equal to $5. The contribution margin may provide a $5 contribution toward the reduction of fixed costs or a $5 contribution to profits.
What is the price at which the quantity demanded by consumers will equal the quantity supplied by produces called?
It is called the equilibrium price.
What are profits and losses?
A profit is an amount of money that is more than it's original price On the other hand, a Loss is an amount of money that is less than it's original price
The convention of conservatism takes into account all prospective profits but leaves all prospective losses?
According to this concept "expected losses are losses but expected gains are not gains". On the basis of this concept closing stock is valued at cost price or market price, whichever is lower. Provision for bad and doubtful debts are maintained.
What is the correct formula when markup is based on selling price?
The correct formula when markup is based on the selling price is selling price is equal to the markup plus the cost. This enables traders make profits.
What is a Pure competition?
Firms are price takers, price is equal to marginal costs, demand is perfectly elastic, i.e. constant and horizontal, the firms makes zero Economics profits.
What is pure competitive?
Firms are price takers, price is equal to marginal costs, demand is perfectly elastic, i.e. constant and horizontal, the firms makes zero Economics profits.
How can shareholders wealth be maximized?
Shareholders wealth can be maximized by maximizing Return on Equity, which is equal to Net Income divided by equity. The higher the net income the more the stock price will increase which will maximize their wealth.
What is a purely competitive industry?
Firms are price takers, price is equal to marginal costs, demand is perfectly elastic, i.e. constant and horizontal, the firms makes zero economics profits.
Perfectly competitive firm in long run equilibrium?
what about them? profits are 0 price=marginal cost all costs are variable optimal allocation of inputs is where marginal rate of technical substitution is equal to the price ratio of the inputs.
What is most likely to lead to an increase in the price of a company's stock?
It's profits are increased.
How the investors make a profit from trading currency?
this video presentation here explains everything, and they say some pretty interesting stuff about 45 minutes in
In what type of market must market price always be equal to marginal cost?
Under perfect competition, since there is no room in perfect competition to earn any abnormal profits
