Answers
Answer:
True.
Explanation:
A flat demand curve for a particular product indicates that the product is very sensitive to a change in the price level and on the other hand, a steeper demand curve indicates that any change in the price level doesn't have a effect on quantity demanded or have a little impact.
Elasticity of demand refers to the responsiveness of quantity demanded with any change in the level of price of the product.
The demand for these products is more elastic because a slightly change in the price level of a product will result in a large change in the quantity demanded for that product.
Related Questions
Gabby Company sells a product for $ 100 per unit. Variable costs are $ 60 per unit, and fixed costs are $ 2 comma 500 per month. The company expects to sell 600 units in September. Calculate the contribution margin per unit, in total, and as a ratio.
A company wishes to raise $27 million by issuing 15-year semi-annual coupon bonds with face value of $1,000 and coupon rate of 6.60 percent. The bonds will have a yield to maturity of 7.70 percent. Determine the minimum number of these bonds the company needs to issue to raise the desired amount of money.
Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each month, as if it uses a periodic inventory system. Assume Oahu Kiki’s records show the following for the month of January. Sales totaled 310 units.Date Units Unit Cost Total CostBeginning Inventory January 1 220 80 $17,600Purchase January 15 310 90 27,900purchase January 24 270 110 29,700Calculate the number and cost of goods available for sale.
Huish Awnings makes custom awnings for homes and businesses. The company uses an activity-based costing system for its overhead costs. The company has provided the following data concerning its annual overhead costs and its activity cost pools: Overhead Costs: Production overhead $150,000 Office expense 100,000 Total $250,000 Distribution of resource consumption: Activity Cost Pools Making Awnings Job Support Other Total Production overhead 45% 40% 15% 100% Office expenses 8% 65% 27% 100% The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. The amount of activity for the year is as follows: Activity Cost Pool Annual Activity Making awnings 5,000 metres Job support 200 jobs Other Not applicablePrepare the first-stage allocation of overhead costs to the activity cost pools
Answers
Answer:
$30,000
Explanation:
Fair value of equity = Fair value of Assets - Fair value of liabilities
Fair value of equity = $150,000 - $50,000
Fair value of equity = $100,000
Holmes Company pays $75,000 to acquire 75% of Equity
Holmes Company pays $15,000 for 75% of goodwill
Non controlling interest = 25% of Equity + 25% of Goodwill
Non controlling interest = 0.25*($100,000) + 0.25*($20000)
Non controlling interest = $25,000 + $5,000
Non controlling interest = $30,000
Instructions
a. Prepare the entry to record the factory labor costs for the month of January.
b. Prepare the entry to assign factory labor to production.
(Weygandt, 12/2017, p. 20-31) Weygandt, J. J., Kimmel, P. D., Kieso, D. E. (2017). Accounting Principles, 13th Edition. [[VitalSource Bookshelf version]]. Retrieved from vbk://9781119411017 Always check citation for accuracy before use.
Answers
Answer:
a. Date Account Titles and Explanation Debit Credit
Factory labor $90,000
Factory wages payable $76,000
Employer payroll taxes payable $8,000
Employer fringe benefits payable $6,000
b. The entry to assign factory labor to production is the following
Date Account Titles and Explanation Debit Credit
Work in process inventory $76,500
(85% of $90,000)
Manufacturing overhead $13,500
(15% of $90,000)
Factory labor $90,000
Answers
Answer:
Pakistan's GDP is 13.81 trillions of rupees.
Explanation:
GDP = C + I + G + NX
Here:
C = 10.50
I = 1.30
G= 2.80
NX = (1.30 - 2.09) = -0.79
GDP = 10.50 + 1.30 + 2.80 - 0.79
GDP = 13.81
2. The price of lumber, a commodity, rises drastically due to the effect of heavy winter weather in the American Northwest, where much of the world's lumber is grown.
3. The production of a new type of blade for their combine harvesters, a tractor used to harvest crops, has allowed wheat farmers, like Herbert, to increase productivity by 40%.
Answers
Answer:
1.Aggregate supply falls
2.Aggregate supply falls
3.Aggregate supply rises due to rise in productivity.
Explanation:
1. In simple words, when the cost of production rises the profit margin of the supplier decreases leading as an incentive to supply less.
2. If the price of the input rises the cost of production also rises leading to lower supply because of lower profit margins.
3. The technological improvement leading to high production would lead to more profits and advantage of economies of scale thus working as an invective to supply more.
b) should the new computer system be purchased?
Answers
Galvanized Products consideration to buy a new computer system for their enterprise data management system with the purchase price of $100,000 is being a good decision
Explanation:
Purchase value $100,000
cash on hand 75,000 + bank loan 1/4 of $100,000= $25000 =$100,000
Estimated Income
(increased efficiencies-payment to technician+MARR )× 5( life span )+ 5000 (salvage value )
(($55,000-$25,000=30,000)+(100,000×18÷100)=18000))×5 =$240,000+5000 = $245,000
Expected liabilities
bank loan interest=((P*(1+i)^n) - P)=(25,000×(1+0.15)^3-25,000)= 13,022
Net value of the purchase proposal
(Estimated Income - Expected liabilities) - Purchase price
= (245,000 - 13,022) = $231,978 - $100,000 = $131,978 (profit)
Hence ,the Galvanized Products consideration to buy a new computer system is a good decision.
Final answer:
The present worth of this investment is -$30,911.60, and the new computer system should not be purchased as the current estimates show that the benefits do not outweigh the costs at the 18% discount rate.
Explanation:
To determine whether the investment is worth it, we will need to calculate the Net Present Value (NPV) of the investment. This takes into account the present value of both the costs and the benefits associated with the investment.
Let's start by calculating the present value of the costs:
- The system itself costs $100,000.
- The loan is $25,000, compounded annually at a rate of 15% over 3 years, which results in a total repayment of roughly $31,357.50 using the formula P(1+r)^n.
- The technician costs amount to a total of $125,000 over 5 years. If we discount these payments back to their present value using the rate of 18%, we get approximately $88,938.24. Using the formula [P/(1+r)^n] for each year and adding them up.
The total present value of costs is therefore roughly $220,295.74.
Next, let’s calculate the present value of the benefits. This is comprised of the $55,000 savings per year due to increased efficiencies, discounted back to present value over 5 years at a rate of 18%, which results in approximately $184,384.14. Then we add the salvage value of the system, which is $5,000, because this value is already in present terms.
The total present value of the benefits is thus around $189,384.14.
The net present value (NPV), calculated by subtracting the present value of costs from the present value of benefits, is thus around -$30,911.60. Since this is a negative value, this suggests that the anticipated benefits of the system does not outweigh its costs at the 18% discount rate.
Therefore: a) the present worth of this investment is about -$30,911.60 and b) the new computer system should not be purchased, based on these calculations and assumptions.
Learn more about Net Present Value Calculation here:
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Answers
Answer:
Its the ability of a nation to produce a good or a service at the lowest opportunity cost.
Explanation:
According to the law of comparative advantage, a nation should produce only a good or a service if the opportunity of cost of producing it is among the lowest among its trade partners. It will give a nation or a company to sell the goods at the lowest possible prices and therefore gathering the maximum economic growth.
This law will allow people to specialize in certain skills therefore reducing the cost of production in the long run, therefore increasing the economic gains. Similarly, a nation should import goods, if the opportunity cost of producing that good is higher than partner nations. Thus, the international trade will allow people to specialize in their areas of expertise and increase their productivity over time. Therefore, the overall global economic output will increase, increasing the people's standards of living.