Answer:
When a price increase does not result in proportionally lower quantity demanded it means that the price elasticity of demand is inelastic or ≤ |1| in absolute terms.
Nicotine is a drug, and drugs are addictive. That means that cigarette users are probably addicted to nicotine, and any increase in price will not affect the quantity sold, or its effect will be very low.
The most common example of inelastic goods are gasoline, electricity, and other utilities which have very low price elasticities. A price increase barely affects the quantity demanded.
The quantity demanded of ground beef increased from 3,550 to 3,650 when the price of hamburger buns decreased from $1.65 to $1.15. Calculate the cross-price elasticity of demand for hamburger buns. Include a minus sign if elasticity is a negative number. Round your answer to the nearest hundredth.
Answer:
the cross price elasticity of demand is -0.08
Explanation:
The computation of the cross elasticity of demand is shown below:
As we know that
= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of price)
where,
Change in quantity demanded is
= Q2 - Q1
= 3,650 - 3,550
= 100
And, average of quantity demanded is
= (3650 + 3,550) ÷ 2
= 3,600
Change in price is
= P2 - P1
= $1.15 - 1.65
= - 0.5
And, average of price would be
= ($1.15 + $1.65) ÷ 2
= 1.4
So, after solving this, the cross price elasticity of demand is -0.08
Rogers and Wissinger have partnership capital balances of $576000 and $432000, respectively. Wissinger negotiates to sell his partnership interest to Mergenthaler for $503700. Rogers agrees to accept Mergenthaler as a new partner. The partnership entry to record this transaction is
Answer:
Wissinger, Capital 432000
Mergenthaler, Capital 432000
Explanation:
A partnership is a form of business whereby two or more people come together to manage s business and achieve its goals and objectives.
Based on the scenario in the question, the partnership firm don't receive any cash since the share was being transferred from Wissinger to Mergenthaler. Therefore, the partnership entry to record this transaction will be:
Wissinger, Capital 432000
Mergenthaler, Capital 432000
This shows the Wissinger's capital balance that was transferred to Mergenthaler.
What three main categories of costs are considered in figuring the total cost of ownership? (Select all that apply.
Bria Clothing Store had a balance in the Accounts Receivable account of $920,000 at the beginning of the year and a balance of $980,000 at the end of the year. Net credit sales during the year amounted to $7,600,000. The receivables turnover ratio was
Answer:
8.0 times
Explanation:
Accounts receivable turnover = Net credit sales / Average accounts receivables
Net credit sales = $7,600,000
Average accounts receivables = Beginning account receivable + Ending account receivable / 2
= ($920,000 + $980,000)/2
= $950,000
Therefore,
Account receivable turnover = $7,600,000 / $950,000
= 8.0 times
1. Calculate ending inventory and cost of goods sold at March 31, using the specific identification method.
Answer:
Too much information is missing, so I looked for a similar question that can hopefully serve as an example:
Hemming uses a periodic inventory system. Assume that ending inventory is consists of 45 units from the March 14 purchase, 85 units from the July 30 purchase, and all 185 units from the October 26 purchase. Using the specific identification method, calculate the (a) the cost of goods sold and (b) the gross profit.
Cost of goods sold (COGS) = $20,999 Gross profit = $27,175 Value of ending inventory = $8,071
In total 1,425 units were purchased or remained from last year's ending inventory. Total cost of the 1,425 units was $29,070.
The company sold in total 1,110 units at $43.30 per unit for a total of $48,174.
the ending inventory using the specific identification method:
45 units x $18.40 = $828 85 units x $23.40 = $1,989 185 units x $28.40 = $5,254 total value of ending inventory = $8,071Cost of goods sold (COGS) = total inventory cost - ending inventory = $29,070 - $8,071 = $20,999
gross profit = total revenue - COGS = $48,174 - $20,999 = $27,175
A series of equal periodic payments that starts more than one period after the agreement is called: Multiple Choice An annuity due. An ordinary annuity. A future annuity. A deferred annuity.
Answer:
A deferred annuity.
Explanation:
A deferred annuity is the contract done with the insurance company in which the promise is made with respect to the amount paid to the owner as a regular income or a lump sum amount for some future date
Therefore in the given case, the last option is correct and the same is to be considered
All the other options are wrong
Last year, you earned a nominal rate of return of 6.92 percent on your bond investments. During that time, the inflation rate was 2.74 percent. How much did your purchasing power increase (real rate)
Answer:
Real rate of return= 0.0418 = 4.18%
Explanation:
Giving the following information:
Nominal rate of return= 6.92%
Inflation rate= 2.74%
The inflation rate decreases the purchasing power of nominal money.
To calculate the real rate of return, we need to use the following formula:
Real rate of return= nominal rare of return - inflation rate
Real rate of return= 0.0692 - 0.0274
Real rate of return= 0.0418 = 4.18%
Rates on fixed, floating, installment and mortgage loans were reduced by 0.3 percent (from 9.3% to 9.0% etc.). Which were impacted the most
Answer:
This depends on the type of interest charged and the length of the loan. Generally speaking, floating loans should adjust semi-automatically to changes in interest rates. So any change affects them directly.
On the other hand, fixed rate loans, most mortgages and installment loans generally carry a fixed interest rate that doesn't depend on the market interest rate. Some mortgages (around 33% of total) are variable rate mortgages that are affected by changes in the market interest rate, but they adjust on a yearly basis.
c. How much higher (lower) would Casebolt Company's net income have been under the direct write-off method than under the allowance method
Answer: $9,375
Explanation:
Under the direct writeoff method, only the actual bad debts incurred will be taken out from the income for the year.
With the Allowance method however, the amount to be taken out will be the percentage expected to be uncollectible.
Under direct method, income would reduce by the actual bad debt of $30,000.
Under Allowance the income would be reduced by;
= ¾% * 5,250,000
= $39,375
Income would be higher with Direct write-off by;
= 39,375 - 30,000
= $9,375
The current zero-coupon yield curve for risk-free bonds is as follows: LOADING.... What is the price per face value of a two-year, zero-coupon, risk-free bond?
Answer:
$89.86
Explanation:
Calculation for the face value of a two year, zero-coupon risk-free bond
Using this formula
P=FV/(1+YTM)^n
Where,
FV represent the face value of $100
YTM represent the Yield to Maturity=5.49%
n represent the number of maturity year= 2 years
Let plug in the formula
P=100/(1+0.0549)^2
P=100/(1.0549)^2
P=100/1.11281401
P=$89.86
Therefore the price of a two-year, zero-coupon, risk-free bond will be $89.86
Paper Express Company has a balance sheet which lists $85 million in assets, $40 million in liabilities, and $45 million in common shareholders'equity. It has 1,400,000 common shares outstanding. The replacement cost of the assets is $115 million. The market share price is $90.
Required:
What is Paper Express's book value per share?
Answer:
$32.14
Explanation:
Paper Express's book value per share=book value of shareholders'equity/common shares outstanding
book value of shareholders'equity=$45 million=$45,000,000
Number of common shares outstanding=1,400,000
Paper Express's book value per share=$45,000,000/1,400,000
Paper Express's book value per share=$ 32.14
Barry often works outdoors, where he measures property boundaries for various clients. He also analyzes the land to determine whether it can be safely built on. His job is best described as SURVEYOR Lois works in an office and comes up with ideas for how to design and structure office buildings. She often uses computer programs to create drawings and models. Then she hands the building plans to other workers, who create more detailed drawings. Her job is best described as ARCHITECT Marvin works in an office drawing maps for bridges, highways, and roads. His job is best described as CIVIL DRAFTER
Answer:
Barry is a land surveyor, you forgot one word there.
Lois is probably an architect since her job involves designing and planing houses, buildings and other structures.
Marvin is probably a graphic designer since his job involves drawing maps, so it is closely related with design. A civil drafter is someone who performs calculations, cost estimates, reports and they also draw plans but their job is more related to engineering or construction, rather than design.
Answer:
A. Surveyor B. Architect C. Civil drafter
Explanation:
Correct on edg 2020
20 years ago, a certain part cost $175. The cost index was 103 and now the index is 320. What cost below is closest to the estimated current cost for the item? Group of answer choices
Answer:
The estimated current cost for the item is $544
Explanation:
The computation of the estimated current cost for the item is shown below:
= Cost index in present ÷ Previous cost index × cost of certain part
= 320 ÷ 103 × $175
= $544
Hence, the estimated current cost for the item is $544
The same is to be considered
We simply applied the above formula so that the estimated current cost could come
Imagine a machine takes 50 minutes to complete one unit on a production line. Of the 50 minutes, 40 minutes was actual productive utilization. For 10 minutes the resource was idle, needing to pause and wait for other processes to finish during the production. What is the average labor utilization (round to the nearest %)
Answer:
80%
Explanation:
the average labor utilization rate is calculated by dividing total labor time applied by the addition of total labor time applied plus idle time. In this case, total labor time applied is 40 minutes and idle time is 10 minutes:
average labor utilization rate = 40 minutes / (40 + 10 minutes) = 40 / 50 = 0.8 = 80%
You are working in retail and you see a coworker taking from the cash register or
overcharging a customer and pocketing (stealing ) the rest. Do you report them?
It is ideal to report or make a complaint regarding overcharging a customer and self-pocketing the extra amount.
What is a report?In crisp and simple terms, a report is like a complaint or an appeal made with the superior authorities regarding any wrongdoings or illegal activities that a person witnesses or experiences.
Overcharging the customers by a cash receptionist is an illegal act and a due report must be made to the manager or the business owner and also to the relevant lawful authorities.
Hence, the significance of a report is aforementioned.
Learn more about a report here:
https://brainly.com/question/2072971
#SPJ2
Reliability is often included in service level agreements (SLAs) when an organization is outsourcing. The toughest thing is to decide how much reliability is enough. Consider the objective of availability or uptime. What is the difference between 95%, 99%, 99.99%, and 99.9999% availability?
Answer:
95% reliability = 18.25 days
99% reliability= 3.65 days
99.99% reliability= 0.0365 days
99.9999% reliability= 0.000365 days
Explanation:
1. Calculation for 95% reliability
Using this formula
95% Reliability=Worse percentage*Numbers of days
Let plug in the formula
95% Reliability=(100%-95%)*365
95% Reliability=5%*365
95% Reliability=18.25 days
2. Calculation for 99% reliability
Using this formula
99% Reliability=Worse percentage*Numbers of days
Let plug in the formula
99% Reliability=(100%-99%)*365
99% Reliability=1%*365
99% Reliability=3.65 days
3. Calculation for 99.99% reliability
Using this formula
99.99% Reliability=Worse percentage*Numbers of days
Let plug in the formula
99.99% Reliability=(100%-99.99%)*365
99.99% Reliability=0.01%*365
99.99% Reliability=0.0365 days
4. Calculation for 99.9999% reliability
Using this formula
99.9999% Reliability=Worse percentage*Numbers of days
Let plug in the formula
99.9999% Reliability=(100%-99.9999%)*365
99.9999% Reliability=0.0001%*365
99.9999% Reliability=0.000365 days
Therefore the difference between 95%, 99%, 99.99%, and 99.9999% are :
95% reliability = 18.25 days
99% reliability= 3.65 days
99.99% reliability=0.0365 days
99.9999% reliability= 0.000365 days
McConnell Corporation has bonds on the market with 22.5 years to maturity, a YTM of 6.9 percent, a par value of $1,000, and a current price of $1,057. The bonds make semiannual payments. What must the coupon rate be on these bonds
Answer:
7.40%
Explanation:
The coupon rate of the bond can be calculated as follows
Formula: [tex]p= C * \frac{1 - \frac{1}{(1 + i)^{n}}}{i} + \frac{M}{(1 + i)^{n}}[/tex]
DATA
M = $1000
n = 22.5 *2 =45 semi-annual periods,
i = 6.9%/2 = 3.45% (semi-annually)
P = $1,057
Solution
1057 =[tex]C * \frac{1 - \frac{1}{(1 + 0.0345)^{45}}}{0.0345} + \frac{1000}{(1 + 0.0345)^{45}}[/tex]
1057 = C * 22.69 + 217.33
839.67 + C * 22.69
C = $37.01 This is a semi-annual coupon
Annual Coupon = 2 * $37.01 = $74.02
Annual Coupon Rate = 7.40%
An individual who is considering consumption between two time periods (year 1 and year 2) has an endowment of $20,000 in year 1 and $15,000 in year 2. If the interest rate is 5 percent, what is the maximum approximate amount that can be spent on consumption in year 1
Answer: A $34,250
Explanation:
Maximum approximate amount that can be spent in year 1 is the endowment in year 1 plus the present value of the year 2 endowment in year 1.
= 20,000 + 15,000/ ( 1 + 5%)
= 20,000 + 14,285.71
= $34.285.71
= $34,250 is nearest amount in options.
what is the accumulated value in 5 years of an annuity paying 200 at the end of each half year, with a nominal interest rate of 9 convertible semiannually g
Answer:
FV= $2,457.64
Explanation:
Giving the following information:
Number of periods= 5*2 = 10
Interest rate= 0.09/2 = 0.045
Semiannual payment= $200
To calculate the Future Value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= semiannual deposit
FV= {200*[(1.045^10) - 1]} / 0.045
FV= $2,457.64
K.J. Lee, CFA, an analyst with Water's Edge Securities, estimates the market risk premium is 6.80% and the risk-free rate is 2.10%. She's calculated the beta for Summerfield Tech as 0.94, and she estimates the expected return is:
Answer:
The Expected return is 8.492%
Explanation:
The computation of the expected return is shown below:
Expected return is
= Risk free rate + Beta × market risk premium
= 2.10% + 0.94 × 6.80%
= 2.10% + 6.392%
= 8.492%
Hence, the Expected return is 8.492%
We simply applied the above formula
and, the same is to be considered
By considering all the information given in the question
Shelia purchases $50,000 of newly issued Gingo Corporation bonds for $45,000. The bonds have original issue discount (OID) of $5,000. After Shelia amortized $2,300 of OID and held the bonds for four years, she sold the bonds for $48,000. What is the amount and character of her gain or loss
Answer: $700
Explanation:
To solve the question, first, we have to calculate the adjusted basis of the bond and this will be the addition of the issued price and the ammortized bond. Therefore, adjusted basis will be:
= $45,000 + $2,300
= $47,300
Then, we will calculate the gain that's gotten on the bond sale. This will be the difference between the sales price and the computed adjusted basis.
= $48,000 - $47,300
= $700
What are some strategies that you can use to prepare to file taxes each year? What would be
the benefits of these strategies?
A merchandiser, provides the following information for its December budgeting process:
The November 30 inventory was 1,800 units.
Budgeted sales for December are 4,000 units.
Desired December 31 inventory is 2,840 units.
Budgeted purchases are:________
a. 5040 units
b. 6,840 units
c. 4,000 units
d. 5,800 units
Answer:
a. 5,040 units
Explanation:
The computation of the budgeted purchase is shown below:
As We know that,
= Budgeted Sale units + ending inventory units - beginning inventory units
= 4,000 units + 2,840 units - 1,800 units
= 5,040 units
Therefore we simply added the closing inventory units and subtract the opening inventory units from the Budgeted Sale units in order to determine the Budgeted purchases units
The inventory control tool that does not require direct line of sight to read the tag on a product(s), is known as
Answer: RFID reader
Explanation:
The inventory control tool that does not require direct line of sight to read the tag on a product(s), is known as Radio Frequency Identification (RFID) reader.
When an information is being stored in a Radio Frequency Identification (RFID) tag, it should be noted that a direct line of sight is not required for the information to be read by a RFID reader.
The inventory control tools is known as Radio-frequency identification.
The s Radio-frequency identification.tags transmit data about an item through radio waves to the antenna or reader combination.
Basically, when an information of a product is being stored in the RFID tag, the data will be transmit to the server without having to be in direct line of sight with the items.
Therefore, the RFID tags are frequently used for the control of merchandise inventory.
Learn morre about RFID here
brainly.com/question/5496045
Anthony and Michelle Constantino just got married and received $39000 in cash gifts for their wedding. How much will they have on their twenty-fifth anniversary if they place half of this money in a fixed-rate investment earning 6 percent compounded annually? Would the future value be larger or smaller if the compounding period was 6 months? How much more or less would they have earned with this shorter compounding period?
If they place half of this money, PV, in a fixed-rate investment earning 6 percent compounded annually, the amount they will have, FV, on their twenty-fifth anniversary is $____ . (Round to the nearest cent.)
Answer:
83,691.48
Explanation:
39000/2 = 19,500
19,500 x 1.06 (6%) 25 times
1. People who own more cars tend to live longer than people who own fewer cars. Why is this relationship not evidence that buying more cars increases life expectancy
Answer:
Car & Life Expectancy positive relationship is not evident, as its due to an interlinking lurking variable ie buyer's affluence.
Explanation:
More cars linked to higher life expectancy, positive correlation between these variables is a spurious correlation. Spurious relationship is a relationship between variables, that appears to be true, when it is actually false.
Given variables' correlation is spurious, as it is not logically correct (evident). It seems to be misleading correct because of a lurking variable, buyer's affluence. Lurking variable affects both independent (causal) & dependent (affected) variable, which creates a statistical illusion of variables' correlation.
In this case, affluence being lurking variable affects both number of cars owned & life expectancy. This seemingly creates a correlation between the non evidently linked variables as 'cars & life expectancy having positive relationship'
Determine the amounts Red Rock should record in the separate accounts for the land, the building, and the equipment.
Answer:
Land $120,000
Building$240,000
Equipment$40,000
Explanation:
Calculation to Determine the amounts Red Rock should record in the separate accounts for the land, the building, and the equipment.
Asset , Estimated fair value, Allocated percentage, Amount paid , Record amount
Land 150,000 30% $400,000 $120,000
Building 300,000 60% $400,000 $240,000
Equipment 50,000 10% $400,000 $40,000
Total 500,000
RECORDED AMOUNT
Land $120,000
Building$240,000
Equipment$40,000
Total $400,000
Calculation for Allocated percentage
Land: 150,000/500,000= 30%
Building 300,000 /500,000 = 60%
Equipment 50,000 /500,000 = 10%
Therefore the amounts Red Rock should record in the separate accounts for the land, the building, and the equipment are:
Land $120,000
Building$240,000
Equipment$40,000
What amount will be paid in full settlement of Invoice 22384, assuming that credit for returns and allowances was received prior to payment and that the invoice was paid within the discount period. Inv. No. Merchandise Freight Paid by Seller Freight Terms Returns and Allowances 22384 $4,500 $140 FOB Shipping Point, 2/10, net 30 $1,200
Answer: $3374
Explanation:
Merchandise = $4500
Less: Return and allowance = $1200
Less: Discount rate at 2% = $66
Add: Freight paid by seller = $140
The amount that will be paid in full settlement of Invoice will be:
= $4500 - $1200 - $66 + $140
= $3374
Note:
Discount rate was calculated as:
= 2% × ($4500 - $1200)
= 2% × $3300
= 0.02 × $3300
= $66
A stock will have a loss of 11.5% in a bad economy, a return of 11.3% in a normal economy, and a return of 31% in a hot economy. There is a 29% probability of a bad economy, a 32% probability of a normal economy and a 39% probability of a hot economy. What is the variance of the stock's returns
Answer:
Variance = 0.030096 or 3.0096% rounded off to 3.01%
Explanation:
To calculate the variance of the stock's returns, we first need to calculate the expected return on the stock. The expected return on the stock can be calculated by multiplying the stock return in each scenario by the probability of that scenario and taking a sum of the answers for each scenario.
Expected return of stock rE= pA * rA + pB * rB + ... + pN * rN
Where,
p represents the probability of each scenarior represents the return under each scenarioExpected return of stock rE = 0.29 * -0.115 + 0.32 * 0.113 + 0.39 * 0.31
Expected return of stock rE = 0.12371 or 12.371%
Variance = ∑ p * (r - rE)²
Variance = 0.29 * (-0.115 - 0.12371)^2 + 0.32 * (0.113 - 0.12371)^2 +
0.39 * (0.31 - 0.12371)^2
Variance = 0.030096 or 3.0096% rounded off to 3.01%
if i move will my IP address change??
Answer:
yes it will change.
Explanation: