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Maksim231197 [3]
2 years ago
12

Becky only eats out at Macaroni Grill and eats out 3 times per month. She receives a raise fro $31,900 to $33,500 and decided to

eat out 5 times per month. Use the midpoint method to calculate the monthly income elasticity of demand for eating out.
This good is

A. A normal good and income elastic.
B. A normal good and income in-elastic
C. An inferior good
Business
1 answer:
ololo11 [35]2 years ago
6 0

Answer:

Since elasticity is 6.4, a positive figure,it is normal good and the fact that it is greater than one means it is elastic,hence option A is correct

Explanation:

The formula for income elasticity of demand is given as:

/(new quantity-old quantity)//(old price+new price)/2)/(New income-Old income)/(old income+new income)/2)

New income=$33,000

Old income=$31,900

New quantity =5 times

Old quantity=3 times

Hence=(5-3)/(3+5)/2)/(33500-31900)/(31900+33500)/2)

Elasticity=6.45

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Lexington Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions ar
sleet_krkn [62]

Answer:

$2,115

Explanation:

Lexington Company's Year 2 net cash flow from financing activities = cash received from issuing stocks minus bank loan payments - distributed dividends

net cash flow from financing activities = $1,250 (from additional stock) - $1,825 (bank payments) - $1,540 (dividends paid) = $2,115

8 0
2 years ago
A beneficiary acquired stock from a decedent. The stock's fair market value at the date of the decedent's death was $500,000. Th
Ivanshal [37]

Answer:

Beneficiary recognized gain is $510000.

Explanation:

The amount paid by the decedent for the stock = $280000

The market value of the stock at the time of death = $500000

The selling price or the amount received by the beneficiary by the sell of stock = $510000

Since the recognized gain is calculated by subtracting the amount paid by the person to buy the stock from the amount that he receives from the sale of stock. But in this case, the beneficiary pays zero for the stock but gets all the money after selling.

Beneficiary recognized gain = amount received from the sell – the amount paid by the beneficiary.

= $510000 – 0

= $510000

7 0
2 years ago
You've decided to capitalize 100% of your new business by obtaining a loan from a local bank. Your initial funding will
fgiga [73]
Capitalize is to give or invest your capital "money" to a company or an industry.  According to this question you capitalize all of your assets, therefore your initial fundings will come from shareholding. 

And your welcome! 



3 0
2 years ago
Read 2 more answers
Refer to the following trial balance. ​ Debit Credit Cash $19,000 ​ Accounts Receivable 40,000 ​ Merchandise Inventory 62,000 ​
Kryger [21]

Answer:

The answer is B.

Explanation:

Gross profit is the difference between a company's net sales or total revenue and cost of sales or cost of goods sales.

Sales revenue is $433,000

Cost of Goods Sold is $240,000 ​

Remember that Gross profit is Sales revenue - cost of goods sold.

Sales revenue----------------------------$433,000

Minus: Cost of Goods Sold----------$240,000

Gross profit--------------------------------<u>$193,000</u>

5 0
2 years ago
Consider a company that provides two services using the same basic process. Service A is relatively complex, and has 15 opportun
patriot [66]

Answer:

The answer is: Total DPMO of the overall process is = 4,733.33

Explanation:

To calculate the defects per million opportunities (DPMO) we use the following formula:

       DPMO = (D/(U*O))*1,000,000

  • Defects = D
  • Unit = U
  • Opportunity to have a defect = O

We are given the following data:

<u>Service A:</u>                                           <u>Service B:</u>

D = 10                                                  D = 17

U = 500                                              U = 1,000

O = 15                                                  O = 5

DPMO Service A = [10 / (500 x 15)] x 1,000,000 = 1,333.33

DPMO Service B = [17 / (1,000 x 5)] x 1,000,000 = 3,400

Total DPMO = 4,733.33

4 0
2 years ago
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