Answer:
e. $52,500
Explanation:
Beginning balance of retained earnings= $555,000
Net earning for the period=$172,500
Closing retained earnings balance for the period: $675,000
Closing retained earning =Beginning balance + net earnings - dividend
$675000 = $555,000 +$172,500- Dividends
$675000 = $727,500 - Dividends
Dividends = $727,500 - $675,000
Dividends =$52,500
Based on the way SBC's brand manager describes its overall pricing strategy across various types of bikes with varying attributes for different types of riders and varying degrees to which those attributes are incorporated, SBC employs
Answer:
Customer orientation to pricing
Explanation:
Based on the description provided, SBC employs product line pricing. This strategy involves setting different prices for various types of bikes within their product line based on the attributes they offer and the target market they cater to, allowing for differentiation and catering to different customer segments. Therefore, option A is correct.
Product line pricing is a strategy that involves setting different prices for different products within a company's product line based on variations in attributes, features, or target customer segments.
It recognizes that not all products in the line are equal and that customers may have different needs, preferences, and willingness to pay.
By offering different price points for different products, companies can cater to diverse customer segments, maximize revenue, and create perceived value for each product variant, allowing customers to choose the option that best aligns with their desired features and budget.
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Your question is incomplete; more probably, your complete question is this:
Based on the way SBC's brand manager describes its overall pricing strategy across various types of bikes with varying attributes for different types of riders and varying degrees to which those attributes are incorporated, SBC employs.
Multiple Choice
A. product line pricing.
B. competitor-based pricing.
C. odd/even pricing.
D. penetration pricing.
E. high/low pricing.
what is the acronym of MHA
no body know hahahaga
Explanation:
yeah
Answer:
The last Masters degree that we will take a look at today includes the M.H.A., or Master of Health Administration.
Chang and Smith Tours has the following balance sheets: 2018 2019 Assets Cash $209 $197 Accounts Receivable 684 726 Inventory 918 1,023 Net Fixed Assets 2,014 1,944 Total Assets $3,825 $3,890 Liabilities and Equity Accounts Payable $748 $818 Notes Payable 306 300 Long-Term Debt 1,647 1,724 Stockholders' Equity 1,118 1,048 Total Liabilities and Equity $3,819 $3,890 What is the amount of net working capital for 2019
Answer:
Chang and Smith Tours
The amount of net working capital for 2019 is:
$828.
Explanation:
a) Data and Calculations:
Chang and Smith Tours
Balance sheets: 2018 2019
Assets
Cash $209 $197
Accounts Receivable 684 726
Inventory 918 1,023
Net Fixed Assets 2,014 1,944
Total Assets $3,825 $3,890
Liabilities and Equity
Accounts Payable $748 $818
Notes Payable 306 300
Long-Term Debt 1,647 1,724
Stockholders' Equity 1,118 1,048
Total Liabilities and Equity $3,819 $3,890
Working capital:
Current assets:
Cash $209 $197
Accounts Receivable 684 726
Inventory 918 1,023
Less current liabilities
Accounts Payable $748 $818
Notes Payable 306 300
Net working capital $757 $828
b) The net working capital is the difference between current assets and current liabilities.
Which of the following activities is an example of using an intranet to gather
information?
A. A salesperson checks a customer's order status, posted by the
production department.
B. A marketing researcher reads the comments posted by
consumers on a social media website.
C. A marketing manager uses a news feed to get links to articles
about industry-related events each day.
D. A marketing manager looks up information about where a
retailer's stores are located on the retailer's website.
SUBMIT
Answer:
A. A salesperson checks a customer's order status, posted by the production department.
Explanation:
In the A answer it is an order status posted by the production department but does not state any external sources or websites. So you have to assume the action is done within the company network or "Intranet"
In the examples B through D there are references made to external sources like: social media website, news feed, and a retailer's website.
A salesperson checks a customer's order status, posted by the production department is an example of using an intranet to gather information.
What do you mean by salesperson?Simply said, a sales representative promotes a company's brand while selling their goods or services. From the initial lead outreach until the actual purchase, they manage client connections and function as the primary point of contact.
It is the perfect career if you want to be in control of your career because it is mostly performance-driven, meaning how well you sell directly effects how much money you earn.
One of the various careers you might apply for with a business degree is a sales representative position. Everything you need to know about this career path is outlined here.
All stages of the sales process involve a sales representative having direct consumer interactions. They are in charge of determining a customer's needs, making suitable product or service recommendations, and making sure they have a great experience from beginning to end.
Sales representatives occasionally make cold calls to leads they find in company directories or through customer recommendations.
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one could use the investment opportunity curve and the indifference curve to calculate optimal consumption and investment.
True or False?
Arrange the types of investments in the correct order from the least risky to the most risky investment. property
bonds
starting a business
mutual funds
Answer:
Bonds
property
speculative bonds
starting a business
Explanation:
Bonds are low-risk investments. They are issued by governments or highly reputable corporations. The returns from bond investments are almost guaranteed.
Property refers to investing in land or building. They are low-risk investments. Land is always appreciating in value. The possibility of incurring losses is low.
Speculative bonds will experience price fluctuations during a trading session. They offer a chance to make high returns. They are risky due to the high chances of incurring losses.
Starting a business is the riskiest. Almost 82% of all start-ups will fail in their first year.
Answer:
bonds
mutual funds
starting a business
Explanation:
Hopes this helps :)
An investor has up to $250,000 to invest in three types of in-vestments. Type A pays 8% annually and has a risk factor of0. Type B pays 10% annually and has a risk factor of 0.06.Type C pays 14% annually and has a risk factor of 0.10. Tohave a well-balanced portfolio, the investor imposes the fol-lowing conditions. The average risk factor should be nogreater than 0.05. Moreover, at least one-fourth of the totalportfolio is to be allocated to Type A investments and at leastone-fourth of the portfolio is to be allocated to Type B invest-ments. How much should be allocated to each type of invest-ment to obtain a maximum return?
Answer:
Answer is explained below in the explanation section.
Explanation:
Solution:
An investor has up to $250,000 to invest in three types of investment.
Type A pays 8% annually and has risk factor of 0.
Type B pays 10% annually and has risk factor of 0.06.
Type C pays 14% annually and has risk factor of 0.10.
So,
Decision Variables are:
[tex]X_{1}[/tex] = Total Amount invested in Type A.
[tex]X_{2}[/tex] = Total Amount invested in Type B.
[tex]X_{3}[/tex] = Total Amount invested in Type C.
So, the Objective Function will be:
Objective function:
Max Z = 0.08[tex]X_{1}[/tex] + 0.10[tex]X_{2}[/tex] + 0.14[tex]X_{3}[/tex]
And the Constraints will be:
1. Total Amount Variable:
[tex]X_{1}[/tex] + [tex]X_{2}[/tex] + [tex]X_{3}[/tex] [tex]\leq[/tex] 250000
2. Total Risk is no greater than 0.05:
0[tex]X_{1}[/tex] + 0.06[tex]X_{2}[/tex] + 0.10[tex]X_{3}[/tex] [tex]\leq[/tex] 0.05
3. At least one fourth of the total amount invested to be allocated to Type A investment.
[tex]X_{1}[/tex] [tex]\geq[/tex] 0.25 ( [tex]X_{1}[/tex] + [tex]X_{2}[/tex] + [tex]X_{3}[/tex] )
0.75[tex]X_{1}[/tex] - 0.25[tex]X_{2}[/tex] - 0.25[tex]X_{3}[/tex] [tex]\geq[/tex] 0
4. At least one fourth of the total amount to be allocated to Type B investment.
[tex]X_{2}[/tex] [tex]\geq[/tex] 0.25 ( [tex]X_{1}[/tex] + [tex]X_{2}[/tex] + [tex]X_{3}[/tex] )
-0.25[tex]X_{1}[/tex] + 0.75[tex]X_{2}[/tex] - 0.25[tex]X_{3}[/tex] [tex]\geq[/tex] 0
5. And the non- negativity constraints are:
[tex]X_{1}[/tex],[tex]X_{2}[/tex], and [tex]X_{3}[/tex] [tex]\geq[/tex] 0
Which of the following is a disadvantage of geographical departmentization?
Answer:
The overlap of assignments results in territorial departmentization.
Explanation:
Other than stressing individual departments divisions, it reflects on an entity as whole and. It forbids differentiation among workers, leading to duplication of duties. It is restricted to organisations that are small.
Jordan plans to add a porch to her house. The new 16' 18' porch will cost an average of $27 por square foot. Jorden also plans to have a 15' sidewalk poured. The cost of the sidewalk will be an additional gas per foot. The gate on the parch will cost $500.00 extra. What will the total cost be?
Question is incomplete as the cost of the sidewalk is not given :
Assume the sidewalk cost an additional $6 per foot.
Answer:
$8366
Explanation:
Given that :
Size of porch = 16 by 18 feets
Area of porch = (16 * 18) = 288 ft²
Cost per ft² = $27
Cost of porch = ($27 * 288) = $7,776
Sidewalk = 15feets
Cost per foot = $6
Cost of sidewalk = ($6 * 15) = $90
Cost of gate = $500
Total cost :
(cost of porch area + side walk + gate)
($7776 + $90 + $500) = $8366
Kindly note that the cost pwr foot of sidewalk was erroneously excluded and the value employed for the cost was only assumed.
6. Microeconomics and macroeconomics Determine whether each of the following topics would more likely be studied in microeconomics or macroeconomics. Microeconomics Macroeconomics The effect of an increase in the money supply on the rate of inflation The effect of government regulation on a monopolist's production decisions The effect of federal government spending on the national unemployment rate
Answer:
Microeconomics has to do with individual households and firms and the decisions they make in an economic setting.
Macroeconomics on the other hand deals with the economy as a whole which means that figures are more aggregated here.
The effect of an increase in the money supply on the rate of inflation. MACROECONOMICS.
This has to do with how the entire economy will be affected as a result of a change in money supply so is Macroeconomics.
The effect of government regulation on a monopolist's production decisions. MICROECONOMICS.
This relates to how government regulation will affect an individual monopolist so is Microeconomics.
The effect of federal government spending on the national unemployment rate. MACROECONOMICS.
This has to do with the national unemployment rate which is an aggregated figure to represent unemployment as a whole in the economy so this is most definitely Macroeconomics.
Industry boundaries and the strengths of Porter's 5 forces are not static and thus they change over time. For instance, Airbnb has completely changed the boundaries of the lodging industry and has seriously decreased the bargaining power of suppliers whereas it has tremendously increased the bargaining power of buyers. What are some other examples of industries that have evolved over time
Answer:
The explanation of the statement is summarized mostly in the explanation section following.
Explanation:
However one illustration could be seen throughout the FMCG as well as Grocery industry, everyone is always selling internet based as well as home transportation has been one of the primary targets on either the basis of these observations. Amazon, Goffers, and so on are attempting to sell through that whole platform. The DVD as well as the Amusement business sector has indeed been actively engaged in such a radical change throughout cloud-based as well as mobile phone saturation. Because of the influence of technological advances, we could even conclude that certain changes have taken place. Throughout based on competitive strength, that would be the direct consequence of rivalry between the world's top corporations. Everybody is endeavoring to destabilize new technology.Then again the market price has indeed been increased significantly, so organizations are attempting to represent individuals with a reasonable profit.
The broadcast news test advises corporate executives to _______. Multiple Choice Make certain that the things they do that are questionable do not end up on the front page of the newspaper or in the media to preserve the appearance of good ethics and meet the bottom line goal of profits Test all corporate policy by the standards of good publicity; that is, only do those things that will increase corporate bottom line profits by leading to good publicity Only do those things in secret that you would not mind becoming public, that is, showing up in the broadcast news All of the answer choices are correct
Answer: Make certain that the things they do that are questionable do not end up on the front page of the newspaper or in the media to preserve the appearance of good ethics and meet the bottom line goal of profits
Explanation:
The broadcast news test is simply defined as the approach taken in a company to ensure that it's employees are acting in an ethical manner.
The broadcast news test advises corporate executives to make certain that the things they do that are questionable do not end up on the front page of the newspaper or in the media to preserve the appearance of good ethics and meet the bottom line goal of profits.
Wat is accounting in economics
Answer:
Accounting and economics both involve plenty of number-crunching. But accounting is a profession devoted to recording, analyzing, and reporting income and expenses, while economics is a branch of the social sciences that is concerned with the production, consumption, and transfer of resources.
I hope it's helpful!
To tolerate a risk is to simply ignore it? true or false
Answer:
False
Explanation:
if you ignored it it would get worse and if you ignore you might get hurt aswell.
The Video Rental Center purchased 24 dozen video tapes of a blockbuster new movie, at a cost of $20 per tape, to sell during the Christmas season.
a. How many individual tapes did video rental center buy?
Answer:
228 units.
Explanation:
One dozen has 12 units
The video center purchased 24 dozens
In total, they pruchased
= 24 x 12 units
=228 units.
Each tapes cost $20. So they paid
=288 x 20
=$5,760
Luis has an obligation to pay a sum of $3,000 in four years from now and a sum of $5,000 in six years from now. His creditor permits him to discharge these debts by paying $X in two years from now, $1000 in three years from now, and a final payment of $2X in nine years from now. Assuming an annual effective rate of interest of 8%, find X
Answer:
The value of X is 2455.77
Explanation:
Given the data in the question;
annual effective rate of interest of 8%, = 0.08
Now, we discount all the ash flows to present value, so we get;
3000×[tex]\frac{1}{(1 + 0.08)^{4} }[/tex] + 5000×[tex]\frac{1}{(1 + 0.08)^{6} }[/tex] = X×[tex]\frac{1}{(1 + 0.08)^{2} }[/tex] + 1000×[tex]\frac{1}{(1 + 0.08)^{3} }[/tex] + 2X×[tex]\frac{1}{(1 + 0.08)^{9} }[/tex]
2,205.089 + 3,150.84 = 793.83 + X( [tex]\frac{1}{(1 + 0.08)^{2} }[/tex] + [tex]\frac{1}{(1 + 0.08)^{9} }[/tex] )
5355.929 - 793.83 = X( 0.8573 + 1.0004 )
4,562.099 = X( 1.8577 )
X = 4,562.099 / 1.8577
X = 2455.77
Therefore; value of X is 2455.77
Splish Brothers Music School borrowed $28,200 from the bank signing a 6%, 6-month note on November 1. Principal and interest are payable to the bank on May 1. If the company prepares monthly financial statements, what adjusting entry should the company make at November 30 with regard to the note (round answer to the nearest dollar)
Answer:
Dr Interest expense $141
($28,200 * 6% * 1 month / 12 months)
Cr Interest payable $141
Explanation:
Preparation of the adjusting entry that the company should make at November 30 with regard to the note.
Based on the information given the adjusting entry that the company should make at November 30 with regard to the note will be :
Dr Interest expense $141
($28,200 * 6% * 1 month / 12 months)
Cr Interest payable $141
Nico is interested in buying a franchise from Oz Inc. For Nico to make an informed decision concerning this purchase, Oz must disclose in writing or online:a.general estimates of costs and sales, but not the basis for them.b.material facts such as the basis of projected earnings figures.c.no information.d.the money the franchisor makes from all its franchise sales.
Answer: b.material facts such as the basis of projected earnings figures.
Explanation:
A franchise simply means when a company allows another company to use it's brand and name in order to help the distribution of its products. The franchisee in this case pays a certain amount to the franchisor.
Bare on the above situation in the question, Oz must disclose in writing or online material facts such as the basis of projected earnings figures.
Assume that in 2018, the first edition of a comic book was sold at auction for $762,400. The comic book was originally sold in 1938 for $.05. For this to have been true, what was the annual increase in the value of the comic book
Answer:
See below
Explanation:
The above is calculated using;
A = P(1 + r/100)^n
Where
A = Future value
P = Present value
r = rate of interest
n = time period
762,400 = 0.05(1 + r/100) ^ 80
(762,400/0.05)^(1/80) = 1 + r/100
How important are communication skills in project management? 2. Was Herb the right person to be assigned as the project manager? 3. There were communications issues with Alice, Bob, Betty, and Frank. For each communication issue, where was the breakdown in communications: encoding, decoding, feedback, and so on?
Answer:
1)
Communication plays a very important role in any of the project.
1.Good communication helps the project to complete in hassle free way.
2.If communication is clear, the project complete its deadline without any failure of delivering .
3.Proper communication also reduces the redundancy of data and ensures effective working of project.
If the present case study is considered, there is a communication gap between the team members because of which Herb faced a lot of problems.
If the communication is clear, then it surely helped Herb to do things better.
Hence communication skills are very important part in any project management.
2)
Yes, herb is the right person to be assigned as the project manager.
Because he has experience of 8 years due to which his company has believed in him. Herb is considered a subject matter expert and a Ph.D holder with knowledge of working in both R&D and manufacturing projects earlier. His experience and knowledge would definitely be an asset to the project, if the communication gets better. This will also help the company to enhance their business.
3)
Yes, there were communication issues with all the four team members.
In the case of Alice, there is a encoded message that she expects that Herb would be writing a recommendation mail for her promotion.
In case of Bob, there is a lack of feedback as Herb didn’t get the required follow up from the technicians.
In case of Betty, there is a problem in decoding Herb’s message of just determining the cost of procurement because of which Betty has actually procured the materials.
The case of Franck , there is feedback issue and that could been better in procuring the materials which did not actually happen.
Cranston LTD. prepares its financial statements according to International Financial Reporting Standards. In October 2021, the company received a $5 million government grant. The grant represents 20% of the total cost of equipment that will be used to improve the roads in the local area. Cranston recorded the grant and the purchase of the equipment as follows: Cash 5,000,000 Revenue 5,000,000 Equipment 25,000,000 Cash 25,000,000 Required: 2. Prepare the correcting entries required under the two alternative accounting treatments allowed under IFRS.
Answer:
Alternative 1:
Debit Revenue $5,000,000
Credit Equipment $5,000,000
Alternative 2:
Debit Revenue $5,000,000
Credit Deferred revenue $5,000,000
Explanation:
Preparation of the correcting journal entries required under the two alternative accounting treatments allowed under IFRS
Based on the information given if in the October 2021, the company received the amount of $5 million as government grant in which we were told that the grant represents 20% of the total cost of equipment which means that the correct journal entries required under the two alternative accounting treatments allowed under IFRS will be :
Alternative 1:
Debit Revenue $5,000,000
Credit Equipment $5,000,000
Alternative 2:
Debit Revenue $5,000,000
Credit Deferred revenue $5,000,000
Explain the relationship between a firm’s short-run production function and its short-run cost function. Focus on the marginal product of an input and the marginal cost of production.
Answer:
Short-run Production Function and Short-run Cost Function
In the short-run, some costs are fixed while others are variable. This is not the case in the long-run because, in the long-run, all costs become variable.
Therefore, the relationship between a firm’s short-run production function and its short-run cost function is depicted by the variability of the cost and the quantity of production in the short-run, when some costs are variable while other costs are fixed.
This implies that the quantity that the firm can produce in the short-run is determined by the variable (marginal) cost of production input. Similarly, the total variable cost of a product is a function of the quantity and the marginal cost per unit.
Explanation:
The short-run production function shows the different volumes of output that a firm can produce, where some costs are fixed and some are variable. This function is expressed as Q = f (L, K), where Q = quantity of production, L = labor input, and K = capital input. Here, the firm assumes that labor input is variable while capital input is fixed. This implies that the marginal cost of the product is equal to the labor cost. Therefore, if the firm employs one more unit of labor, it results in a marginal increase in the units of production. The marginal cost of production is expressed as a function of the change in the total cost divided by the change in the quantity.
The relationship between the Firm's short-run production and cost function is that they help a firm to make suitable adjustments in its production approach to achieve the cost efficiency.
In short-run of production, some costs are fixed while others are variable. However, in long-run of production, all costs become variable.
In the short-run production function, the firm employs two inputs which is labor and capital
Since the firm is operating in a short-run production period, the relationship can be seen through the production function and cost function assuming that the firm uses a certain level of technology.
in the short-run production function, it is assumed that firm utilize state-of-the-art technology in the production process.
In conclusion, the relationship between the Firm's short-run production and cost function is that they help a firm to make suitable adjustments in its production approach to achieve the cost efficiency.
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Why are credit card companies more willing to offer a young person a secure
credit card than an unsecured card?
Answer:
Some of the best credit cards for college students often include secured credit cards because approval rates are high on these cards. Secured credit cards for families with no credit or poor credit are great for building up good credit with minimal risk compared to unsecured cards
Explanation:
The new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the industry average, 2.85, without affecting either sales or net income. Assuming that inventories are sold off and not replaced to get the current ratio to the target level, and that the funds generated are used to buy back common stock at book value, by how much would the ROE change
Answer:
4.50%
Explanation:
Note: Question is incomplete but very similar one is attached as picture below
Current ROE = Net Income / Equity = $21,000 / $280,000 = 7.50%
Current Inventory = $210,000
Target Current ratio = 2.70
1. Current assets at target Current ratio = Current Liabilities * Target current ratio = $70000 * 2.70 = $189,000
2. Reduction in Inventories = Present Current assets - Current assets under target current ratio
Reduction in Inventories = $14000 + $70000 + $210000 - $189000
Reduction in Inventories = $105000
3. Reduction on common equity using sale of inventory = Current Equity - reduction
Reduction on common equity using sale of inventory = $280,000 - $105,000
Reduction on common equity using sale of inventory = $175,000
4. Change in ROE = New ROE - Current ROE
Change in ROE = [21000 / 175000] - 7.50%
Change in ROE = 12% - 7.50%
Change in ROE = 4.50%
Offering 30 points and brainliest
Answer:
b
Explanation:
25 points !Please answer thank you !!!!
Answer: The 3rd one
Explanation: (i think) because it talks about shoes and a graph usually shows the growth in a company or product
Please help ASAP!
Zeke had great fun as a kid running a lemonade stand, and his ideas helped his class reach their fundraising goal for the class trip last year. What career cluster might Zeke be interested in?
A. Information Technology
B. Human Services
C. Science, Technology, Engineering, and Mathematics
D. Marketing, Sales, and Service
Answer: the correct answer is d
Explanation:check for yourself
Calculate the cash flow to creditors. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) f. Calculate the cash flow to stockholders. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.
Answer and Explanation:
Missing information in the question:
Graffiti Advertising, Inc., reported the following financial statements for the last two years. 2016 Income Statement Sales $ 574,200 Costs of goods sold 273,935 Selling and administrative 124,715 Depreciation 54,558 EBIT $ 120,992 Interest 19,692 EBT $ 101,300 Taxes 40,520 Net income $ 60,780 Dividends $ 11,400 Addition to retained earnings $ 49,380 GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2015 Cash $ 13,500 Accounts payable $ 9,486 Accounts receivable 18,976 Notes payable 14,490 Inventory 13,812 Current liabilities $ 23,976 Current assets $ 46,288 Long-term debt $ 135,360 Net fixed assets $ 344,966 Owner's equity $ 231,918 Total assets $ 391,254 Total liabilities and owners’ equity $ 391,254 GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2016 Cash $ 14,486 Accounts payable $ 10,530 Accounts receivable 21,081 Notes payable 16,484 Inventory 22,772 Current liabilities $ 27,014 Current assets $ 58,339 Long-term debt $ 153,800 Net fixed assets $ 406,293 Owner's equity $ 283,818 Total assets $ 464,632 Total liabilities and owners’ equity $ 464,632
The computation is shown below:
Cash flow to creditors is
= Interest expense - long term debt on 2016 + long term debt on 2015
= $19,692 - $153,800 + $135,360
= $1,252
And, the cash flow to stockholder is
= Dividend paid - owner equity 2016 + owner equity 2015 + retained earnings
= $11,400 - $283,818 + $231,918 + $49,380
= $8,880
A company purchased $10,500 of merchandise on June 15 with terms of 2/10, n/45, and FOB shipping point. The freight charge, $750, was added to the invoice amount. On June 20, it returned $1,200 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it is entitled to. The cash paid on June 24 equals:
,Answer:
$9,825
Explanation:
Merchandise Costs must include all costs related to acquisition of merchandise such as freight charges for valuation purposes - IAS 2.
Therefore Cost of Merchandise Purchased was, $10,500 + $750 = $11,250
Merchandise Purchase - June 15 :
Debit : Merchandise $11,250
Credit ; Discount Received (2% x $11,250) $225
Credit : Account Payable (98 % x $11,250) $11,025
Return of Merchandise - June 20 :
Debit : Accounts Payable $1,200
Credit : Merchandise $1,200
Amount to be Paid - June 24 :
Debit : Accounts Payable ($11,025 - $1,200) $9,825
Credit : Cash $9,825
uppose the annual demand function for the Honda Accord is Qd = 430 – 10 PA + 10 PC – 10 PGwhere PA and PC are the prices of the Accord and the Toyota Camry respectively (in thousands), and PGis the price of gasoline (per gallon). What is the elasticity of demand of the Accord with respect to the price of Camry when both cars sell for $20,000 and fuel costs $3 per gallon? What is the elasticity with respect to the price of gasoline?
Answer:
Qd = 400 units
elasticity of demand of the Accord with respect to the price of Camry = 0.5
elasticity with respect to the price of gasoline = -0.075
Explanation:
Solution:
The annual demand function for the Honda Accord is:
Qd = 430 – 10 PA + 10 PC – 10 PG
Where,
PA = Price of Honda Accord
PC = Price of Honda Camry
PG = Price of Gasoline per gallon.
Selling Price of both cars = $20,000
Fuel Cost = $3 per gallon.
a) Elasticity of Demand of the Accord with respect to the price of Camry.
First, we need to calculate the number of units demanded.
Qd = 430 – 10 PA + 10 PC – 10 PG
Qd = 430 – 10 (20) + 10 (20) – 10 (3.00)
Qd = 430 - 200 + 200 - 30
Qd = 430 - 30
Qd = 400 units
Cross-price elasticity of the Accord with respect to the price of the Camry will be:
Cross Price = (dQd/dPC) x (PC)/(Qd)
dQd/dPC = 10
PC = 20
Qd = 400
So,
Cross Price = 10* 20/400
Cross Price = 0.5
b) Elasticity with respect to the price of gasoline?
Elasticity = (dQd/dPG)*(PG/Qd)
dQd/dPG = -10
PG = 20
Qd = 400
Elasticity = (-10)*(3/400)
Elasticity = -0.075
a) The Qd is = 400 units
b) When The elasticity of demand of the Accord regarding the price of Camry is = 0.5 then elasticity concerning the price of gasoline is = -0.075
Calculation Elasticity of demand
When The annual demand function for the Honda Accord is:
Then Qd = 430 – 10 PA + 10 PC – 10 PG
Where,
PA is = Price of Honda Accord
PC is = Price of Honda Camry
PG is = Expense of Gasoline per gallon.
Selling Price of both cars is = $20,000
Fuel Cost is = $3 per gallon.
a) When the Elasticity of Demand of the Accord about the price of Camry.
First, we need to estimate the number of units demanded.
Qd is = 430 – 10 PA + 10 PC – 10 PG
Qd is = 430 – 10 (20) + 10 (20) – 10 (3.00)
Qd is = 430 - 200 + 200 - 30
Qd is = 430 - 30
Qd is = 400 units
When the Cross-price elasticity of the Accord with respect to the price of the Camry will be:
Cross Price is = (dQd/dPC) x (PC)/(Qd)
dQd/dPC is = 10
PC is = 20
Qd is = 400
So,
Cross Price is = 10* 20/400
Cross Price is = 0.5
b) When is the Elasticity affecting the price of gasoline?
Elasticity is = (dQd/dPG)*(PG/Qd)
dQd/dPG = -10
PG = 20
Qd is = 400
Elasticity is = (-10)*(3/400)
Elasticity is = -0.075
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