Answer:income elasticity of demand for Americano coffees = 0.55
Explanation:
Income Elasticitity of demand = percentage change in quantity demanded / Percentage change in income
which can easily be calculated using
Income Elasticitity of demand =(New quantity demanded - old quantity demanded/ old quantity)/(New Income - Old income /old income.
new income = $28
old income=$22
new quantity= 3450
old quantity=3000
Bringing down our formulae
Income Elasticitity of demand =(New quantitry demanded - old quantity demanded/ old quantity)/(New Income - Old income /old income.
= {(3450-3000) /3000} /{(28-22)/22} =(450/3000) /(6/22) = 0.15/0.2727=0.55
income elasticity of demand for Americano coffees = 0.55
Here , we can see that we have a positive income elasticity of demand therefore Americano coffees is a normal good as an increase in income will lead to a rise in demand. Also, the income elasticity of demand for this commodity is less than 1, therefore it is also a necessity good.
Answer: $27,000
Explanation:
Even though for GAAP reasons, revenue is to be recognized only when earned as per the Accrual principle of accounting, this is not so for the calculation of taxable income.
Taxable income is to be calculated on cash basis which means that taxes are to be paid on revenue when the revenue is received in cash and not when it is earned.
As Ral Corp. received the money in 2020, they are to include the entire amount of $27,000 in their 2020 taxable income for rent revenue.
Answer:
= 9.80%
Explanation:
Plowback ratio fundamental analysis ratio that measures how much earnings are retained after dividends are paid out.
The expected growth rate equals the return on equity times the plowback ratio:
We can use the relationship g = ROE × b to find the plowback ratio.
= 14.00% × 0.70 = 9.80%
Answer:
it is not easy to carry out the functions of marketing intermediaries, and that probably they will not perform them very efficiently.
Explanation:
Marketing intermediaries play a huge role in the market channel distribution of all goods. They help reduce or rather bridge that gap that exist between the producers and the final consumers. Marketing intermediaries play a vital role in which they are specialized in. The role they are specialized in cannot just be picked and played easily by any other agent like the producer. As marketing intermediaries, they are specialized in their job duties and because of that are the most effective and efficient in playing that role. It thus, becomes very difficult to carry out functions of what you aren't specialized in.
