Answers
Answer:
-Price elasticity of demand=0.77
-The demand is inelastic because the elasticity is 0.77 and this number is less than 1.
Explanation:
The formula to calculate the price elasticity of demand is:
Price elasticity of demand=% change in the quantity demanded/% change in the price
To use this formula you have to calculate the % change in the quantity demanded and % change in the price:
% change in the quantity demanded=(Q2-Q1/((Q2+Q1)/2))*100
% change in the quantity demanded=(250-200/((250+200)/2))*100
% change in the quantity demanded=(50/(450/2))*100
% change in the quantity demanded=(50/225)*100
% change in the quantity demanded=22.22%
% change in the price=(P2-P1/((P2+P1)/2))*100
% change in the price=(600-800/((600+800)/2))*100
% change in the price=(-200/(1400/2))*100
% change in the price=(-200/700)*100
% change in the price=-28.57%
Now, you can replace the values in the formula to to calculate the price elasticity of demand:
Price elasticity of demand= 22.22%/-28.57%
Price elasticity of demand=0.77
The price elasticity of the demand is 0.77. An elastic demand is when the elasticity is greater than 1 and an inelastic demand is when the elasticity is less than one. So, according to this, the demand is inelastic because the elasticity is 0.77 and this number is less than 1.
Related Questions
An institutional broker wants to review their book of customers to see which are most active. Given a list of trades by customer name, determine which customers account for at least 5% of the total number of trades. Order the list alphabetically ascending by name.
A clothing manufacturer makes both shirts and shorts. The sales price for shirts is $24 with variable costs of $10 and shorts have a price of $32 and variable costs of $17. Which of the following is a true statement for this clothing manufacturer in the short term? 1. They would prefer to make shorts instead of shirts. 2. They would prefer to make skirts instead of shorts. 3. They would not have a preference for either product. 4. If both products used the same machine for different lengths of time, it would make no difference.
EB7. LO 1.4Indicate whether each of the following statements is true or false.Section 302 of Sarbanes-Oxley requires the CEO and CFO to review all financial reports and sign the reports.One of the three questions put forth by the Institute of Business Ethics is "Do I mind others knowing what I have done?"Ethical issues may be faced on a small scale, such as making a business decision to produce excess inventory for the sole purpose of trying to influence managers’ bonuses.A manager who spends excess budgeted funds remaining at the end of a fiscal year on unnecessary expenditures thinking that it is better to "use it than lose it" is acting ethically.The Foreign Corrupt Practices Act was implemented in 2001 to protect investors by enhancing the accuracy and reliability of corporate financial statements and disclosures.
Super Grocery store allocates its service department expenses to its various operating (sales) departments. The following data is available for its service departments: Expense Basis for allocation Amount Administrative Square feet of floor space $ 34,000 Advertising Amount of dollar sales $ 27,000 The following information is available for its three operating (sales) departments: Department Square Feet Dollar Sales Produce 1,470 $ 99,000 Bakery 980 $ 49,000 Meats 2,450 $ 61,000 Totals 4,900 $ 209,000 What is the total administrative expense allocated to the Meats department?
Requirements
1. Record each transaction in the journal, using the following account titles: Cash; Accounts Receivable; Office Supplies; Prepaid insurance; Land; Building; Furniture; Accounts Payable; Utilities Payable; Notes Payable; Common Stock; Dividends; Service Revenue; Salaries Expense; Rent Expense; and Utilities Expense. Explanations are not required.
2. Open the following four-column accounts including account numbers: Cash, 101; Accounts Receivable, 111; Office Supplies, 121; Prepaid Insurance, 131; Land, 141; Building, 151; Furniture, 161; Accounts Payable, 201; Utilities Payable, 211; Notes Payable, 221; Common Stock, 301; Dividends, 311; Service Revenue, 411; Salaries Expense, 511; Rent Expense, 521; and Utilities Expense, 531.
3. Post the journal entries to four-column accounts in the ledger, using dates, account numbers, journal references, and posting references. Assume the journal entries were recorded on page 1 of the journal.
4. Prepare the trial balance of Theodore McMahon, Attorney, at April 30, 2018.
Answers
Answer:
1. Record each transaction in the journal. Explanations are not required.
April 1
Dr Cash 70,000
Cr Common stock 70,000
April 3
Dr Office supplies 1,100
Dr Furniture 1,300
Cr Accounts payable 2,400
April 4
Dr Cash 2,000
Cr Service revenue 2,000
April 7
Dr Land 30,000
Dr Building 150,000
Cr Cash 40,000
Cr Notes payable 140,000
April 11
Dr Accounts receivable 400
Cr Service revenue 400
April 15
Dr Salaries expense 1,200
Cr Cash 1,200
April 16
Dr Accounts payable 1,100
Cr Cash 1,100
April 18
Dr Cash 2,700
Cr Service revenue 2,700
April 19
Dr Accounts receivable 1,700
Cr Service revenue 1,700
April 25
Dr Utilities expense 650
Cr Accounts payable 650
April 28
Dr Cash 1,100
Cr Accounts receivable 1,100
April 29
Dr Prepaid insurance 3,600
Cr Cash 3,600
April 29
Dr Salaries expense 1,200
Cr Cash 1,200
April 30
Dr Rent expense 2,100
Cr Cash 2,100
April 30
Dr Dividends 3,200
Cr Cash 3,200
2. Open the following four-column accounts including account numbers:
3. Post the journal entries to four-column accounts in the ledger,
I used an excel spreadsheet to answer questions 2 and 3
4. Prepare the trial balance of Theodore McMahon, Attorney, at April 30, 2018.
In order to prepare a trial balance we must prepare an income statement first.
Service revenue $6,800
Salaries expense -$2,400
Rent expense -$2,100
Utilities expense -$650
Net income $1,650
retained earnings = net income - dividends = $1,650 - $3,200 = -$1,550
Theodore McMahon, Attorney
Balance Sheet
For the Month Ended April 30, 2018
Assets:
Cash $23,400
Accounts receivable $1,000
Prepaid insurance $3,600
Office supplies $1,100
Furniture $1,300
Land $30,000
Building $150,000
Total assets: $210,400
Liabilities and Equity:
Accounts payable $1,950
Notes payable $140,000
Common stock $70,000
Retained earnings ($1,550)
Total liabilities and equity: $210,400
Final answer:
The process involves journalizing each transaction that occurred in April 2018, posting these journal entries into their corresponding accounts and then preparing a trial balance to check that total debits equal total credits. However, without specific transactional data, a step-by-step guide could not be provided.
Explanation:
The question pertains to the fundamentals of financial accounting, primarily dealing with the concepts of journalizing transactions, posting journal entries to four-column accounts, and preparing a trial balance. Due to the lack of specific transactional data provided within the question, an exact step-by-step guide cannot be provided. However, the process can be generally explained and understand in following steps:
- Journalizing Transactions: Here, each business transaction that occurred during April 2018 would be recorded. These entries involve pairs of debt and credit entries, corresponding to individual business operations.
- Posting Journal Entries: The journal entries would then be transferred or 'posted' to the corresponding four-column accounts. In this case sequentially to accounts: Cash, 101; Accounts Receivable, 111; and so on, following the provided list of accounts.
- Preparation of Trial Balance: The trial balance summarizes all of the ledger accounts, including its final balances. It is used to verify that total debits equal total credits, crucial for maintaining the balance in double-entry accounting.
Learn more about Financial Accounting here:
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Answers
Answer:
they are the interface between the brand and the customer
Explanation:
Based on the information provided within the question it can be said that the personnel in SuperCuts are the interface between the brand and the customer. The personnel are the ones that interact on a daily basis with the shoppers and provide all the information that they need regarding the SuperCut's brand in order to generate sales.
Answers
Answer:
Contribution margin = $211,150
Contribution margin ratio = 31.19%
Explanation:
total sales revenue $677,000
variable costs:
- Cost of goods sold $405,100
- S&A expenses $60,750 ($465,850)
Contribution margin $211,150
Fixed expenses ($54,350)
Operating income $156,800
Contribution margin ratio = $211,150 / $677,000 = 31.19%
Answers
Answer:
$262500
Explanation:
Please see attachment .
Rental Receivable (cr) $2,000
A. True
B. False
Answers
Answer:
B. False
The business should not make this entry on 31 December.
Explanation:
The accounting principle of prudence states that profits should not be overstated and losses should not be understated. This means that any profit should not be recorded until it is realized while any losses should be recorded as soon as they are anticipated. As the business has not received cash from tenants on 31 December 2016, it should not make any entry debiting cash and crediting the rent receivable.
The business should let the rent receivable balance intact until the rent is received on 15 January and till then record no entry to such as the above.
Answers
Answer:
If the growth rate continues, the stock in 5years if the P/E ratio remains unchanged will be $33.64.
Explanation:
Given
Profit/share (Eo) = $1.21
Percentage growth (g) =7.25%
Number of years = 5 years
To find stock price, we use the formula:
;
So, we have
= $33.64
Therefore, If the growth rate continues, the stock in 5years if the P/E ratio remains unchanged will be $33.64.