ch01sm - Chapter 1 Introduction to Business in the United...

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Chapter 1 Introduction to Business in the United States SOLUTIONS TO APPLY WHAT YOU HAVE LEARNED 1-22. 1. b The human resource factor 2. f Land and materials that come from land 3. a The factor of production that brings all the other factors of production together 4. h The motivation to do something when the benefits exceed the sacrifice of doing it 5. d A type of market economy 6. e The four major items needed to support economic activity 7. g Buildings, machinery, tools, and money used to produce goods and services 8. c A strong, centralized government controls all or most of the factors of production 1-23 1. d Goods sold outside the country in which they were produced 2. f A business that converts purchased raw materials into some tangible, physical product 3. a A company involved in more than one type of business activity 4. g A type of business operated by either a wholesaler or a retailer 5. j A quantity limitation placed on imported goods 6. b A business known as a middleman 7. i The conversion of the currency of one country into its equivalent in another country's currency 8. e Taxes that raise the price of imported products 9. h A business that sells products to the final consumer 10. c Goods brought into a country that were produced in another country Chapter 1 - Introduction to Business in the United States F-1
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1-24. a. Sales $5,200 Cost of Goods Sold (2,800 ) Gross Profit $2,400 b. Cost of Goods Sold/Cost of Clothing Gross Profit $2,400 Rent Expense Net Income 300 Wages Expense Net Income 900 c. Gross Profit $2,400 Rent ($300) Wages (900 ) Total Expenses ($1,200 ) Net Income $1,200 1-25. Sales $15,000 Cost of Goods Sold (9,000 ) Gross Profit $6,000 1-26. a. Sales $18,000 Cost of Goods Sold (12,600 ) Gross Profit $5,400 b. Cost of Goods Sold/Cost of Hardware Gross Profit $5,400 Rent Expense Net Income 1,000 Utilities Expense Net Income 300 Wages Expense Net Income 1,500 c. Gross Profit $5,400 Rent ($1,000) Utilities (300) Wages (1,500 ) Total Expenses ($2,800 ) Net Income $2,600 F-2 Chapter 1 – Introduction to Business in the United States
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1-27. a. Sales (per quilt) $150 Cost of quilt (100 ) Gross profit (for one quilt) $ 50 b. Gross profit per quilt $ 50 TIMES number of quilts sold x 24 Total gross profit for all quilts $1,200 OR Sales (24x$150) $3,600 Cost of Goods Sold (24x100) (2,400 ) Total Gross Profit $1,200 c. Gross Profit $1,200 Rent ($200) Utilities (75) Advertising Expense (150) Bank Charges (15 ) Total Expenses ($ 440 ) Net Profit $ 760 1-28. a. They would be classified as a manufacturer because they take raw materials and build them into computers. b. Sales $1,000,000 Computer Parts ($300,000) Labor (200,000) Overhead (100,000) Cost of Goods Sold (600,000 ) Gross Profit $ 400,000 c. Gross Profit $400,000 ($50,000 ) Net Income $350,000 Chapter 1 - Introduction to Business in the United States F-3
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1-29. A stakeholder is any person or entity who has an interest in the financial health of
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This note was uploaded on 04/23/2008 for the course AC 205 taught by Professor Powers during the Fall '08 term at Clarkson University .

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ch01sm - Chapter 1 Introduction to Business in the United...

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