The Klingon Corporation has net fixed assets with a book value of $700 and an appraised market value of about $1,000. Net workin

Answer:

$154,050

Explanation:

The following shows how net income for the business is calculated:

Total Sales           $634,000

Subtract: costs      -$328,000

Subtract: depreciation -$73,000

EBIT                   -$233,000

Subtract: interest      -$38,000

EBT                      195,000

Subtract: tax(195,000 × 21%) -$40,950

Net income    $154,050

The calculation involves deducting all costs, interest, and taxes from the total sales revenue to arrive at the net income.

Answer: the potential options are:

A. A growth market corresponds to a differentiation-based strategy

B. A broadly-defined target market relates to a cost leadership strategy

C. A growth market is associated with a cost-based strategy

D. Technological innovation aligns with a cost-based strategy

Answer is B

Explanation:

Businesses employing a cost leadership strategy, alongside those utilizing a differentiation strategy, share a vital characteristic: both aim to appeal to a wide customer base. Their strategies to attract a diverse set of consumers contrast with approaches that focus on catering to a more specific niche. Such strategies are labeled focus strategies (Porter, 1980). A focused cost leadership strategy entails competing on prices to capture a NARROW MARKET. A firm adopting this strategy may not always offer the lowest prices in the industry; however, it sets lower prices in comparison to its competitors in the designated market segment. For instance, one might find milk cheaper at a large supermarket in their locality, while the neighborhood convenience store offers lower prices closer to home. Redbox exemplifies this concept; it rents DVDs for just $1 from vending machines located at supermarkets and other retail venues. Even cheaper options exist via Netflix's subscription-based streaming services, yet among DVD rental businesses, Redbox stands out with its exceptional prices and convenience.

Response:

Greg's profit from the apartment sale = $590,000

Details:

Cost of purchase = $100,000

Renovations = $300,000

Overall Initial Cost = Cost of Purchase + Renovations

Overall Initial Cost = $100,000 + $300,000

Overall Initial Cost = $400,000

Depreciation over 20 Years = Yearly Depreciation * 20

= $2,500 * 20

= $50,000

Net Value after 20 Years = Initial Cost - Depreciation over 20 Years

= $400,000 - $50,000

= $350,000

Capital Gain = Net Sale Price - Net Value

When Net Sale Price = Selling Price - Commission

= $1,000,000 - $60,000

= $940,000

Thus, Capital Gain = Net Sale Price - Net Value

Capital Gain = $940,000 - $350,000

Capital Gain = $590,000