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marshall27 [118]
2 years ago
9

Lauren's salary decreases from $ 37,000 to $ 30,000 . She decides to reduce the number of outfits she purchases each year from 2

0 to 19.
Use the midpoint method to calculate the income elasticity of demand for new outfits.
Business
1 answer:
nikklg [1K]2 years ago
8 0

Answer:

E=-4.0746

Explanation:

Using the midpoint method, Lauren's income elasticity of demand for new outfits is determined by the change in income multiplied by the average number of outfits, divided by the change in the number of outfits multiplied by the average income:

E=\frac{\Delta I*O_{avg}}{\Delta O*I_{avg}}\\E=\frac{(37,000-30,000)*\frac{20+19}{2}}{(19-20)*\frac{37,000+30,000}{2}}\\E=-4.0746

Her income elasticity of demand for new outfits is -4.0746.

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Trell Corporation transferred $50,000 of accounts receivable to a local bank. The transfer was made
Arlecino [84]

Answer: d. $6,500.

Explanation:

The question makes it seem quite complicated but it's not. In calculating the amount Trell will receive from the factor we do the following,

We take the fair value of Trell's 20% interest of $8,000 and subtract the factoring fee from it.

The factoring fee is,

= 50,000 * 3%

= $1,500

Subtracting it we have,

= 8,000 - 1,500

= $6,500.

Trell will show an amount receivable from factor of $6,500 so option D is correct.

7 0
2 years ago
Lois and Peggy are the only two accountants at a construction company. They split the accounting work in the company according t
Lapatulllka [165]

Answer:

Job sharing

Explanation:

Job sharing is a sort of adaptable work course of action in which two individuals work to finish the work one individual would do in a self-contained all day job. In job-sharing agreement, two people handle work, and they share salaries. Hours can change: They may cooperate some portion of the week, and they may never observe one another.

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2 years ago
Skaredykat Inc. is considering initial expansion beyond its home market. The firm has decided not to enter markets that differ g
Brrunno [24]

The firm is not engaging in international trade is True.

(B) The firm is using a regional approach to international expansion.

<u>Explanation:</u>

When a company wants it's business to grow and expand in a new country it uses the regional approach. It is generally used when the company is quite established and it has a nice foothold in the country.

In the regional approach the business is first set up in the country and when it gains power it starts spreading across the borders to get a region as a whole.

4 0
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When an appraiser assumes that no one is being forced to sell at a reduced price because of an impending divorce or similar situ
Alekssandra [29.7K]

Answer:

market value

Explanation:

In situations such as this one, the appraiser is usually hired to determine the market value of the property/asset that the individual is trying to sell. Market value is a term used in economics that describes the actual current value of an asset or a company on the financial market, according to market participants. In other words, this is the current price that other similar assets are selling for and what buyers seem to be willing to pay.

3 0
2 years ago
Brief Exercise 6-02 Tamarisk, Inc. took a physical inventory on December 31 and determined that goods costing $190,000 were on h
Rudiy27

Answer:

The amount should Tamarisk report as its December 31 inventory is $252,000

Explanation:

The computation of the ending inventory is shown below:

= Stock on hand + goods purchased from Sheffield Corp + goods sold to Wild horse Co.

= $190,000 + $29,000 + $33,000

= $252,000

We considered all the amounts which are given in the question i.e FOB destination and FOB shipping point which is added to the physical inventory on hand.

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2 years ago
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