Answer:
a. -1.25
b. -1.25
Explanation:
Price elasticity is used to measure the change in demand as a result of a change in price.
Formula is;
= % change in Quantity/ % change in Price
a. Suppose the price increases from $1.00 to $1.50. The price elasticity of demand is:
% change in Quantity using the midpoint formula;
% Change in Price using midpoint formula
= -0.5/0.4
= -1.25
b. Suppose the price decreases from $1.50 to $1.00. The price elasticity of demand is:
% change in Quantity using the midpoint formula;
% Change in Price using midpoint formula
= 0.5/-0.4
= -1.25
Answer:
The unlevered value of the firm is $869325.15
Explanation:
For computing the value of unlevered firm, the following formula should be used which is shown below:
Value of levered firm = Earning before interest and taxes × (1 - tax rate) ÷ cost of equity
where,
Earnings before income and taxes are $218,000
Cost of equity is 16.3%
And, the tax rate is 35%
Now put these values on the above formula
So, the value would be equals to
= $218,000 × (1 - 0.35) ÷ 16.3%
= $141,700 ÷ 16.3%
= $869325.15
The other terms like bonds and the annual coupon should not be considered in the computation part because we have to calculate for unlevered firm which only includes equity and the bond is a debt security. Thus, it is irrelevant.
Hence, the unlevered value of the firm is $869325.15
Answer:
material price variance (standard price - actual price) * quantity purchased
MPV= ( 3.30 - 3.50) 2300 =$460 Unfavorable
Material quantity variance = ( standard quantity - actual quantity) standard price
MQV = ( 1920 -2300) 3.30 = $1254 Unfavorable
Labour price (rate) variance = (Standard rate - actual rate) actual hours
LRV = (12- 11.8) * 280 = $56 Favorable
Labor hours variance = ( standard hours - actual hours) * standard rate
LHV = ( 240 - 280) * $12 = $480 unfavorable
Explanation:
the complete question:
Levine Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. Direct materials (8 pounds at $3.30 per pound) $26.40 Direct labor (1 hours at $12.00 per hour) $12.00 During the month of April, the company manufactures 240 units and incurs the following actual costs. Direct materials purchased and used (2,300 pounds) $8,050 Direct labor (280 hours) $3,304 Compute the total price, and quantity variances for materials and labor.
Answer and Explanation:
The computation of the depreciation expense and book value at the end of 2016 is shown below:
But before that first determine the cost of the asset which is
Cost of the asset is
= Purchase price + rear hydraulic lift + sales tax
= $62,000 + $8,000 + $3,000
= $73,000
Now the depreciation expense is
= ($73,000 - $8,000) ÷ (10 years)
= $6,500
ANd, the book value is
= $73,000 - $6,500 × 2
= $60,000
Answer:
The authority compliance style
Explanation:
The authority compliance style is one of the Blake / Mouton leadership grips where the manager believes that the employees are just a form of means to achieving a goal . As a result of this , the set goals are given more priority over the employees.
Employees under this managerial form of leadership are not motivated as they are forced to work towards achieving the managers goals with in a very stringent condition.
