Small Business UK | Guides & Tips

Sales revenue used for this computation is net sales (which takes into account sales returns and allowances and sales discounts). On the basis of the sales data presented in Illustration 5-5 and the cost of goods sold data in Illustration 5-10, the gross profit for Highpoint Electronic is $144,000, computed as follows:

A company’s gross profit may also be expressed as a percentage by dividing the amount of gross profit by net sales. For Highpoint Electronic the gross profit rate is 31.3% ($144,000 — $460,000). The gross profit rate is generally considered to be more useful than the gross profit amount because it expresses a more meaningful (qualitative) relationship between net sales and gross profit. For example, a gross profit of $1,000,000 may be impressive. But, if it is the result of a gross profit rate of only 7%, it is not so impressive. Read the rest of this entry »

It is sometimes said of these combination the monopolistic trusts that they reduce prices to the consumer by better methods of production, but all experience shows that this saving of cost goes to the pockets of the producer. The price to the consumer depends upon the supply, which can be reduced at pleasure by the combination.

These are clear expressions of concern for the distributional effects of market power. The second statement, in fact, suggests approval of efficiency only Read the rest of this entry »

The arrangement that a higher price results from restricted output involves the “which came first?” question. One might just as well say that restricted output is caused by raising the price or that a price increase and output reduction simultaneously results from a move up the demand curve. But I digress.

Therefore, the original goal of the Sherman act was to minimize the dead weight loss due to market power, that is, the welfare loss due to allocation of resources among industries. Equivalently, the goal is to Read the rest of this entry »

The latter half of the nineteenth century saw the creation of a national economy in the United States. The railroad, telephone, and telegraph linked together what had been regional or local markets. A reorganization of production and distribution followed the establishment of this industrial infrastructure. Many of the large manufactures and retailers of the present day trace their lineage to this time. These large firms were often formed by consolidation through the merger of much smaller, previously independent, firms. Frequently, these consolidations were carried out by holding companies or trusts. More often than not, they dominated the markets in which they operated.

It’s green, but does VGP-BPS10 too much green? With the VAIO W Eco Edition Sony vgp-bps9 seeks to stand out with a design that’s partially made of reprocessed plastic from CDs, as well as a carrying case made of recycled PET bottles. The keyboard, at 86 percent of full size, feels somewhat cramped. And while we like the HD display and the bundled Kidzui browser that’s designed to keep kids safe, parents may think twice about paying an $80 premium (or more) over competing netbooks for vgp-bps9/b’s latest mini-notebook. The $480 VAIO W Eco Edition offers style, eco-friendliness, good performance, and a robust software bundle, but it’s not the best value. Read on to see how this netbook stacks up to the competition.

Design

The rounded edges of the 10.5 x 7.1 x 2.0-inchremind us of the Samsung N130’s pebble-like design. The white, matte lid eschews Read the rest of this entry »