What is entrepreneur. Characteristics of entrepreneur. -5. Function of entrepreneur. -5

Using actual exchange rates, Turkish GDP per capita is approximately 87.5 US Dollars. Using PPP-implied exchange rates, Turkish GDP per capita is approximately 280 US Dollars, the GDP per capita in USD terms is higher when using PPP-implied exchange rates than when using actual exchange rates.

To convert Turkish GDP per capita from Turkish Liras to USD using actual exchange rates, we need to know the current exchange rate between Turkish Lira and US Dollars. Let's assume the exchange rate is 8 Turkish Liras to 1 US Dollar.

(i) Using actual exchange rates:

Turkish GDP per capita in USD terms = Turkish GDP per capita / Exchange rate

= 700 Turkish Liras / 8 Turkish Liras per USD

= 87.5 US Dollars

(ii) Using PPP-implied exchange rates:

To calculate GDP per capita using PPP-implied exchange rates, we need to use the PPP conversion factor which reflects the relative cost of goods and services in different countries. Let's assume the PPP conversion factor for Turkey is 2.5.

Turkish GDP per capita in USD terms = Turkish GDP per capita / PPP conversion factor

= 700 Turkish Liras / 2.5

= 280 US Dollars

Comparing the two values, we can see that the GDP per capita in USD terms is higher when using PPP-implied exchange rates than when using actual exchange rates. This is because PPP conversion factors take into account the differences in prices between countries, whereas actual exchange rates only reflect the relative value of currencies.

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The best generic strategy depends on the situation is none of the above. The correct answer is E.

The best generic strategy depends on the situation of the business. Each of the generic strategies - cost leadership, differentiation, niche/focus strategy, and integrated cost leadership/differentiation - has its own advantages and disadvantages.

For example, cost leadership can be effective for businesses operating in a highly competitive market where customers are price-sensitive. However, this strategy may not work well for businesses that need to invest heavily in research and development to differentiate themselves from competitors.

On the other hand, differentiation can be effective for businesses that offer unique and high-quality products or services, but this strategy may require a higher investment in marketing and research and development.

Niche/focus strategy can be effective for businesses that serve a specific market segment and have a deep understanding of their customers' needs. However, this strategy may limit the growth potential of the business.

Integrated cost leadership/differentiation can be effective for businesses that can balance both cost and differentiation advantages. However, this strategy may be challenging to implement, and businesses may need to make trade-offs between cost and differentiation.

Therefore, the best generic strategy for a business depends on its unique situation, market conditions, customer needs, and resources.

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If K and her husband were killed in an automobile accident, the death proceeds of K's life insurance policy would be directed to her contingent beneficiary, her daughter. This is in accordance with the Common Disaster clause.

A Common Disaster clause is a provision in a life insurance policy that specifies what happens to the death benefit in the event that the insured and the primary beneficiary die at the same time or within a certain time period of each other. If this occurs, the policy proceeds are usually paid to a contingent beneficiary or the insured's estate.

A contingent beneficiary is a person or entity who will receive the policy's death benefit if the primary beneficiary is unable to receive it. If the primary beneficiary is unable to collect the death benefit due to death or some other reason, the proceeds of the policy are paid to the contingent beneficiary.

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Grease payments are all of the following except for: D. small sums of money. What are grease payments?Grease payments are a type of bribe that is paid to low-ranking government officials or employees to expedite or facilitate routine administrative procedures. These payments are made to speed up a process, such as issuing a permit or licence, getting a visa or passport, or speeding up the delivery of goods through customs.

In a developing country, a bribe paid to a minor official or clerk is known as a "grease payment" or "speed money." These types of payments are often small, and their primary purpose is to facilitate the performance of routine, non-discretionary functions that the government is supposed to provide to its citizens.

Examples of grease payments include tipping an official at the Department of Motor Vehicles to move to the front of the line, paying a small sum to get one's passport application processed quicker than usual, or giving a small bribe to a customs official to release a shipment of goods through red tape.

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Answer: B: Active

Explanation: The fact that the word "Will" is in the sentence makes it an active voice.

The sentence "Refreshments will be served" uses the passive voice. Option A is correct.

The sentence is in the passive voice because the subject "refreshments" is being acted upon by the verb "served". In the passive voice, the focus is on the recipient of the action rather than the doer of the action. In this case, the sentence is emphasizing that refreshments will be provided to the guests rather than who will be providing the refreshments.

In contrast, if the sentence were in the active voice, it would be written as "We will serve refreshments", where the emphasis is on the doer of the action.

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Lola Harper should use Schedule A because her itemized deductions of $13,700 are greater than the standard deduction of $12,000.

This means she can claim a larger deduction on her tax return by itemizing her deductions rather than taking the standard deduction.

Lola Harper should use Schedule A because it allows her to deduct specific expenses such as charitable donations, medical and dental expenses, and state income tax. By adding up her itemized deductions, Lola found that the total amount exceeded the standard deduction for her tax situation.

This calculation shows that Lola's itemized deductions exceed the standard deduction of $12,000 for her tax situation, so she would benefit more from itemizing her deductions on Schedule A rather than taking the standard deduction.

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Adverse selection is likely to be a bigger problem with Plan A, which has a high monthly premium and a low deductible.

Adverse selection occurs when individuals with higher risks or more health issues are more likely to choose a specific insurance plan. In this case, employees with more health concerns may opt for Plan A, since it has a low deductible, meaning they will pay less out-of-pocket for medical expenses.

This can lead to higher overall costs for the company, as the insurer will have to cover more expensive claims. Conversely, healthier employees may choose Plan B with a lower premium, resulting in a riskier pool of insured individuals in Plan A.

To mitigate adverse selection, the company could consider offering a balanced plan or implementing wellness programs to promote healthier behaviors among employees.

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a. To find the probability of $250 to $300 in unusual activity in a month, we need to calculate the z-scores for $250 and $300. The mean is $250 and the standard deviation is the square root of the variance, which is sqrt($391) ≈ $19.75.

Z-score for $250: (250 - 250) / 19.75 = 0
Z-score for $300: (300 - 250) / 19.75 ≈ 2.53

Now, using a z-table, we find the probability of having a z-score between 0 and 2.53. The corresponding probabilities are 0.5 and 0.9943. Therefore, the probability of $250 to $300 in unusual activity in a month is 0.9943 - 0.5 = 0.4943, or 49.43%.

b. To find the probability of more than $300 in unusual activity in a month, we use the z-score for $300, which is 2.53. The probability of having a z-score less than 2.53 is 0.9943, so the probability of more than $300 is 1 - 0.9943 = 0.0057, or 0.57%.

c. To find the probability that at least one of these 10 customers exceeds $300 in unusual activity in a month, we first calculate the probability that none of them exceed $300. The probability of a single customer not exceeding $300 is 1 - 0.0057 = 0.9943. For 10 independent customers, the probability of none of them exceeding $300 is (0.9943)^10 ≈ 0.9573. Therefore, the probability of at least one customer exceeding $300 is 1 - 0.9573 = 0.0427, or 4.27%.

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The equivalent rate with semiannual compounding when an interest rate is 12% with quarterly compounding is 11.76%. This is because when compounding occurs more frequently, the effective annual rate (EAR) is higher.

To find the equivalent rate with semiannual compounding, use the following formula: EARsemiannual = (1 + iquarterly)4 - 1, where iquarterly is the iquarterly interest rate. In this case, quarterly = 0.12/4 = 0.03. Therefore, EARsemiannual = (1 + 0.03)4 - 1 = 11.76%.

The formula for calculating the equivalent interest rate is: r = (1 + i/m) ^ m - 1 where: r = equivalent interest rate i = nominal interest rate m = number of compounding periods per year assuming that the nominal interest rate is 12% and it is compounded quarterly (4 times per year), then the number of compounding periods per year, m = 4.

Therefore, r = (1 + i/m) ^ m - 1= (1 + 0.12/4) ^ 4 - 1= 1.03 ^ 4 - 1= 1.1255 - 1= 0.1255 or 12.55% when the interest rate is expressed semiannually (2 times per year), the equivalent rate is: r = (1 + i/m) ^ m - 1= (1 + 0.12/2) ^ 2 - 1= 1.06 ^ 2 - 1= 1.1236 - 1= 0.1236 or 12.36%Therefore, the equivalent rate with semiannual compounding is 12.36%.

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The correct answer is B. Capabilities are based on organizational processes (i.e., routines) which do not require conscious action taken by managers/executives.

Among the following statements about capabilities, the one that is true is that capabilities are based on organizational processes (i.e., routines). A capability is a capacity to perform an action or an operation in the most effective way possible.

It can refer to a range of abilities, including strategic, operational, and functional competencies. It includes both tangible and intangible resources, such as the abilities of employees, processes, and technologies. Capabilities can emerge as a result of a firm's history or an intentional effort to develop them.

Capabilities allow firms to succeed in their industry by providing a unique value to customers that sets them apart from the competition. According to the given options, organizational capabilities do not require conscious action taken by managers/executives, which is not true.

Examining a firm's history is a helpful way to identify a firm's capabilities. Comparing a firm's processes and performance to those of other companies (i.e., benchmarking) is useful when evaluating a firm's own resources and capabilities.

A firm's capabilities are built on a variety of routines, procedures, and practices that it has established over time, according to research. These procedures might include how to design, produce, and distribute a product or service, how to respond to clients, and how to deal with suppliers. These procedures and routines are referred to as capabilities.

Therefore the correct option is B.

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Circumstances that likely will result in an audit opinion that departs from an unqualified opinion include:

An audit opinion that differs from an unqualified opinion may be issued if the auditor discovers material misstatements or inconsistencies in the financial statements if the auditor is limited in the extent of their audit, or if there is a disagreement between the auditor and the client regarding financial statement presentation or disclosure.

These circumstances indicate that the auditor is unable to express an unqualified opinion on the financial statements.

An auditor must also be able to conduct the audit with sufficient scope to obtain adequate audit evidence. If the auditor is unable to complete an appropriate audit for any reason, such as a limitation on scope, they may be unable to issue an unqualified opinion.

Finally, if the auditor and client disagree on a financial statement presentation or disclosure, the auditor may be unable to express an unqualified opinion.

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A "Cold Chain" is the practice of keeping perishable commodities at a constant low temperature while being stored, transported, and handled in order to guarantee their quality and safety.

To make sure that goods are delivered and maintained at the proper temperature, it involves a variety of refrigerated trucks, storage spaces, and refrigerated packaging.

2. A differentiation approach is used by McDonald's Cool Chain. This is so that McDonald's can differentiate its products from those of rival companies while still keeping their high standards for quality and freshness.

3. McDonald's uses franchising as part of their growth plan. This helps the McDonald's value chain by enabling the company to grow quickly with little capital outlay. While McDonald's provides the brand name, operating system, and marketing assistance, franchisees are responsible for funding the opening of additional restaurants.

4. AFL Logistics Ltd (ALL) and McDonald's would have to make a number of revisions to the financial accounts if the merger went through. The balance sheet, for instance, would list ALL of the assets and liabilities, including any debt and inventories. The income statement would reflect ALL's revenue and costs, which can include Cool Chain-related costs like fuel and maintenance for chilled trucks.

5. By examining different cost elements, such as labor expenses, cost of products sold, and overhead costs, it is possible to assess the cost structures of McDonald's, its rivals, and the industry average in my nation from 2019 to 2021. A pertinent comparison would aid in assessing McDonald's cost management.

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The sales level at which a corporation is profitable is known as the break-even point. has a profit that is equal to its fixed expenses.

Fixed costs are equivalent to the contribution margin. has no money to her name. Therefore, choices (A), (B), and (D) are correct.

The break-even point (BEP) or break-even level denotes the volume of sales necessary to cover all expenses, which include both fixed and variable costs to the business, in either unit (quantity) or revenue (sales) terms.

At the break-even threshold, there is no overall profit. A corporation can only surpass the break-even point if revenues are more expensive than variable costs per unit.

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The feature of services referred to in the question is that services are often intangible and occur simultaneously with the customer's receipt of them.

Services, such as a visit to the doctor's office, happen at the same time the customer receives them, meaning they cannot be stored or saved for later. This is not the case with products, which can often be purchased, stored, and saved for later.

Additionally, services are typically personalized and often cannot be standardized. They are tailored to the customer's individual needs and circumstances. Therefore, products and services differ in that services are often intangible and occur simultaneously with the customer's receipt of them.

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The answer is option C, $100,000.

The stockholders' equity at the beginning of the year was:

Stockholders' equity = Total assets - Total liabilities

Stockholders' equity = $100,000 - $80,000

Stockholders' equity = $20,000

During the year, the business recorded net income as:

Net income = Revenues - Expenses

Net income = $210,000 - $110,000

Net income = $100,000

Dividends paid during the year were $20,000.

So, the stockholders' equity at the end of the year is:

Stockholders' equity = Stockholders' equity at the beginning of the year + Net income - Dividends

Stockholders' equity = $20,000 + $100,000 - $20,000

Stockholders' equity = $100,000

Therefore, the answer is option C, $100,000.

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An external firm that specializes in the creation, production, and/or placement of a marketing communications message is known as an advertising agency.

Advertising agencies are organizations that provide a range of marketing communication and advertising services to their clients. The job of an advertising agency is to help companies promote their products or services in the most effective and cost-effective way possible. An advertising agency can assist a company in defining a brand strategy, developing creative concepts and messages, producing ads and other promotional materials, and executing campaigns that meet the company's goals and objectives. They provide a full range of services, including creative development, media buying and planning, research, public relations, sales promotion, and other related services.

Advertising agencies frequently take on a significant role in helping clients achieve their marketing goals. They serve as an intermediary between the client and the media, creating and placing advertisements on behalf of the client. This entails a variety of tasks, such as determining the target audience, selecting the appropriate media to use, developing the creative content, and monitoring and measuring the campaign's effectiveness.

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The perpetual inventory system requires that the inventory account be updated at the time merchandise is sold. This system is a method of inventory accounting that tracks inventory levels in real-time, updating the inventory account after each transaction.

This type of system is commonly used in businesses that have a high volume of sales and inventory turnover, such as retail stores, wholesale distributors, and manufacturers.

The perpetual inventory system is designed to keep a continuous record of the inventory levels, providing accurate and up-to-date information about the quantities of items in stock.

When a sale is made, the system automatically updates the inventory account to reflect the reduction in inventory. This allows the business to quickly identify when inventory levels are running low and when it is time to reorder more items.

A major advantage of the perpetual inventory system is that it allows the business to better manage their inventory levels, which can help to reduce costs and increase profits.

By having real-time information about inventory levels, the business can make more informed decisions about when to reorder items, how much to order, and how often to order. This can help to reduce waste and avoid stockouts, which can lead to lost sales and dissatisfied customers.

In conclusion, the perpetual inventory system requires that the inventory account be updated at the time merchandise is sold. This system is designed to keep a continuous record of inventory levels, providing real-time information about the quantities of items in stock.

It is commonly used in businesses that have a high volume of sales and inventory turnover and can help to reduce costs and increase profits.

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Delta Diamonds had five one-carat diamonds available for sale this year: one purchased on June 1 for $500, two purchased on July 9 for $550 each, and two purchased on September 23 for $600 each.

On December 24, it sold one of the diamonds purchased on July 9. Using a periodic specific identification, its inventory after the December 24 sale is $2,250.

The periodic specific identification method is a method of inventory valuation in which the cost of each item sold and each item remaining in inventory is physically tracked and recorded. In this scenario, the company bought five one-carat diamonds throughout the year, with the following specifics:

One diamond was purchased on June 1st for $500.

Two diamonds were purchased on July 9th for $550 each.

Two diamonds were purchased on September 23rd for $600 each.

So, the total amount spent on buying five one-carat diamonds is:

= $500 + ($550 × 2) + ($600 × 2)

= $2,400.

On December 24th, the company sold one of the two diamonds purchased on July 9th.

Hence, the cost of goods sold (COGS) for that item is: $550.

The cost of inventory remaining after the sale is:

Total cost of five diamonds = $2,400 - COGS of the sold diamond

= $2,400 - $550

= $1,850.

However, there are still four diamonds in the inventory, one from June 1st and two each from July 9th and September 23rd. The total cost of inventory with respect to these four items is:

=$500 + ($550 × 1) + ($600 × 2)

= $2,250.

Therefore, using the periodic specific identification method, the inventory after the December 24 sale is $2,250. Answer: $2,250.

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Suppose the market clearing price is $15 and the price ceiling is $17. Then The price that prevails in the market will be $17.

What is the market clearing price? The market clearing price is a situation in which the number of goods and services demanded is equal to the number of goods and services supplied. It is the point where the buyers and sellers agree on a price at which they are willing to trade.

A price ceiling is the highest price that can be legally charged for a good or service. It is used by the government to protect consumers from price gouging by suppliers. This is often done in industries where supply is limited and the demand is high.

The price that prevails in the market will be $17 because the price ceiling is $17. This means that suppliers can't charge more than $17. The market clearing price is $15, which is lower than the price ceiling. Since suppliers can't charge more than $17, they will charge $17, which is the highest price they can charge.

So, the price that prevails in the market will be $17.

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The costs that would be included in the recorded cost of merchandise inventory are invoice cost, storage costs, and wages costs. Insurance costs and selling costs would not be included in the recorded cost of merchandise inventory.

Invoice cost is the total amount shown on the invoice received from a supplier for merchandise purchased. This amount would be included in the recorded cost of merchandise inventory.

Storage costs refer to the costs associated with storing the merchandise. This could include rent for the storage space, labor associated with storing the inventory, or other costs associated with storing the inventory. These costs would be included in the recorded cost of merchandise inventory.

Wages costs refer to the wages of employees used to help transport, unload, and store the merchandise. These costs would be included in the recorded cost of merchandise inventory.

Insurance costs and selling costs would not be included in the recorded cost of merchandise inventory. Insurance costs refer to the costs associated with protecting the merchandise against losses, while selling costs refer to the costs associated with the sale of the merchandise, such as advertising and shipping.

In summary, the costs that will be included in the recorded cost of merchandise inventory are invoice cost, storage costs and wages costs.

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"At a price of $45, a store can sell 40 toasters a day. At a price of $40 the store can sell 60 toasters a day. Since total revenue is decreased by the price decrease, demand must be elastic." Thus, Option B is correct.

When the store decreases the price of the toaster from $45 to $40, the demand for toasters increases from 40 to 60 per day. This indicates that the customers are responsive to the price change, making the demand elastic.

If the total revenue had increased by the price decrease, the demand would be considered inelastic. However, since the question states that the total revenue decreased, it suggests that the increase in demand was not enough to offset the decrease in price, and thus demand is elastic.

Inelastic demand occurs when a change in price has a negligible effect on the quantity demanded, while elastic demand occurs when a change in price leads to a proportional change in the quantity demanded. Therefore, a decrease in price will cause an increase in demand and a decrease in total revenue for a good with an elastic demand curve.

This question should be provided as:

At a price of $45, a store can sell 40 toasters a day. At a price of $40 the store can sell 60 toasters a day. Since total revenue _______ by the price decrease, demand must be _____>

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The advantage of a 15-year over a 30-year mortgage (fixed interest) to the borrower is lower interest rates and higher equity in their home faster.

The advantage to the lender is they will receive more of their principal back faster as the loan is paid off more quickly.

This means the lender is more likely to make a return on their loan sooner, as well as avoiding potential for nonpayment and foreclosure.

Additionally, lenders benefit from the increased interest rate charged with shorter-term loans, since the longer the loan, the lower the interest rate the borrower can secure. This means the lender will make more on the loan overall.

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The statement a lease with option to buy is a good home buying solution for some buyers is false

The buyer always loses money in this type of arrangement. Lease with option to buy, also known as rent-to-own, is a contract in which a potential buyer rents a property for a certain period of time before deciding whether or not to buy it.

In some situations, a lease with option to buy is a useful home buying alternative for individuals who don't have enough money for a down payment, those with a low credit score, or those who are not yet ready to buy a home.

A lease with option to buy, also known as a rent-to-own or lease-purchase agreement, is a contract in which a potential buyer rents a property for a set period of time before deciding whether or not to purchase it. The buyer usually pays a lump sum payment upfront or in instalments, which is kept as a deposit.

After that, the buyer will pay a monthly fee as they would if they were renting a property.

Some of the pros of a lease with option to buy are:

However, there are also drawbacks, such as the buyer losing their deposit money if they don't buy the property or if they are unable to maintain the monthly payment or if they are unable to get a mortgage.

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In defending against the strict liability claims, Seaside can make the following arguments: Arguments about the elements of injury and proximate cause: Seaside can argue that the injury was not caused by the mercury in the tuna, but by some other factor.

The plaintiff may have been exposed to mercury from other sources, which caused the injury. In such a case, Seaside cannot be held strictly liable for the injury.Argument about whether the tuna was defective or unreasonably dangerous: Seaside can argue that the tuna was not defective or unreasonably dangerous due to the mercury content. Mercury is naturally present in tuna, and Seaside had no way of knowing the exact amount of mercury in the tuna. Moreover, the level of mercury in the tuna was not high enough to pose a significant risk to human health. Therefore, Seaside cannot be held strictly liable for selling a defective product due to the mercury content.Arguments about whether the tuna was defective or unreasonably dangerous because of the lack of warning: Seaside can argue that the plaintiff was aware of the risks associated with consuming tuna and did not rely on Seaside to provide warnings. The plaintiff was expected to exercise reasonable care in deciding what to eat. Therefore, Seaside cannot be held strictly liable for not providing warnings about the mercury content.If the elements above are proved, easyshop can be held liable on a strict product liability claim even though they had no control over the packing or labeling of the tuna. This is because they were part of the chain of distribution of the product and benefited financially from its sale.

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The answer are strong dollar relative to the euro is beneficial for a U.S. consumer buying a Porsche produced in Germany with parts from Slovakia, as well as for any U.S. business that imports goods from Europe.

When a U.S. consumer buys a Porsche produced in Germany with parts from Slovakia, the impact of a strong dollar relative to the euro is a favorable one. This means that, with a strong dollar, the U.S. consumer can buy the same car at a lower price in terms of the dollar than they would have with a weaker dollar.

This is because the exchange rate between the dollar and the euro directly affects the cost of buying goods or services. The stronger the dollar is relative to the euro, the more purchasing power the U.S. consumer has when buying something that is priced in euros.

In this case, the Porsche produced in Germany with parts from Slovakia would cost less in U.S. dollars if the dollar is strong relative to the euro.

The impact of a strong dollar relative to the euro is also beneficial for any U.S. business that imports goods from Europe. These businesses can purchase the same goods from European suppliers at a lower cost in terms of the U.S. dollar. This reduces their operating costs and increases their profit margins.

Overall, a strong dollar relative to the euro is beneficial for a U.S. consumer buying a Porsche produced in Germany with parts from Slovakia, as well as for any U.S. business that imports goods from Europe.

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The statement "A cash flow statement places each source or use of cash into one of three broad categories: operating activities, investing activities, or financing activities" is true because a cash flow statement is a financial statement that displays all cash inflows and outflows from a company's operations in a given period.

A cash flow statement is a financial statement that displays all cash inflows and outflows from a company's operations in a given period. This statement can be used to assess the overall financial position of a company.

The three broad categories into which cash inflows and outflows are divided are as follows:

Operating activities are those that relate to the core operations of the company.

Investing activities are those that relate to the acquisition and sale of long-term assets, such as property, plant, and equipment, as well as investments in securities.

Financing activities are those that relate to the raising and repayment of capital.

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"Selling away" refers to the situation when a registered person engages in private securities transactions without obtaining the firm's approval, potentially exposing themselves and the firm to legal and regulatory consequences. B is the correct answer.

Registered individuals who engage in selling away may be in violation of securities laws and regulations, as well as the firm's policies and procedures. This can lead to disciplinary action, such as fines or suspension, as well as potential liability for losses suffered by investors.

Firms have a responsibility to supervise their employees' activities and ensure they comply with regulatory requirements, so they may face consequences as well. It is important for registered individuals to obtain approval from their firm before engaging in any private securities transactions to avoid any potential legal or regulatory issues.

This question should be provided with answer choices:

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This is known as "deceptive marketing and is known as sliming" and is prohibited by law.

The action described is an example of deceptive marketing and is known as "sliming." It involves misrepresenting a product or service as required by law in order to pressure customers into purchasing it. In this case, the ancillary coverage or product is presented as a legal requirement when it is not, leading customers to believe they are obligated to purchase it. This is considered an unfair and unethical business practice that can harm customers and damage the reputation of the company engaging in it.

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Gerald Lambert invented Listerine as a surgical antiseptic for throat infections, but was able to market it to a wider audience by publicizing the problem of halitosis (i.e., bad breath). The correct option is B.

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The net operating income in this case would be closest to the net operating income prior to the price increase and volume decrease, minus the total amount lost in revenue from the price increase and volume decrease.

To calculate this, first determine the total amount of revenue lost from the price increase and volume decrease. Multiply the $3 increase by the 600 unit decrease, which is equal to $1,800 in lost revenue.

Then, subtract the $1,800 from the original net operating income. The result is the net operating income closest to the increase and decrease.

To summarize, the net operating income would be closest to the original net operating income, minus the total amount of revenue lost from the price increase and volume decrease.

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