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LenaWriter [7]
1 year ago
10

The publisher of an economics textbook finds that, when the book's price is lowered from $70 to $60, sales rise from 10,000 to 1

5,000. By the midpoint method, the price elasticity of demand is:________.a. 500b. 2.6 c. 3.5d. 50
Business
1 answer:
max2010maxim [7]1 year ago
3 0

Answer:

b. 2.6

Explanation:

Price elasticity of demand measures how much quantity demanded changes in response to a change in price.  The Midpoint Method uses the average percent change in both quantity and price.

The formula for calculating midpoint elasticity of demand is a below

PED=(Q2−Q1)÷(Q2+Q1)/2

        (P2−P1)÷(P2+P1)/2

Where Q is quantity and P is price

PED=(15000−10000)÷(15000.+10000)/2

        (60−70)÷(60+70)2

PED =5,000÷12,500

          (10)÷65

PED =0.4

        0.154

PED =2.5974

PED   =2.6

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Lakeview Apartments is an 800​-unit apartment complex. When the apartments are​ 90% occupied, monthly operating costs total $ 22
Harman [31]

Answer:

$204,080

Explanation:

The computation of operating cost is shown below:-

operating cost if occupy 55%

Cost on (800 × 90%)

= 720 units is $220,040

Cost on (800 × 80%)

= 640 Units is $215,480

Variable cost per unit = Changes in total cost ÷ High activity-Low activity

= ($220,040 - $$215,480) ÷ (720 - 640)

= 4,560 ÷ 80

= 57 per unit

Fixed cost = Total cost - Variable cost

= $220,040 - (720 × 57)

= $179,000

Cost equation:

Total cost = Fixed cost + Variable cost per unit

Y = $179,000 + 57X

Y = $1790,00 + (57 × 440)

Y = $204,080

3 0
2 years ago
Henderson Co. has fixed costs of $36,000 and a contribution margin ratio of 24%. If expected sales are $200,000, what is the mar
Studentka2010 [4]

Answer:

25%

Explanation:

the margin of safety is the percent of sales which the company is above the break even point.

We solve for the break even point:

\frac{Fixed\:Cost}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}

\frac{36,000}{0.24} = Break\: Even\: Point_{dollars}

BEP  = 150,000

We solve for the margin of safety:

$ 200,000 - $ 150,000 = $ 50,000

Now we compare against our sales:

$ 50,000 / $ 200,000 = 0.25

5 0
2 years ago
Dr. McCoy earns $51,233 teaching at the university. What is his weekly salary?
lesya692 [45]

Answer:

$985.25

Explanation:

The $51,233 is Dr. McCoy's annual salary; the total amount she earns in a year

We have about 52 weeks in a year

To determine the weekly salary, you will set up the equation like this;

<em>If 52 weeks = $51,233</em>

<em>then 1 week = ?</em>

Multiply 1 by $511,233 ; 1 * 51,233 =$51,233

Next, divide the above $51,233 by 52;

$51,233/ 52 = $985.25

Her weekly salary is therefore $985.25

3 0
2 years ago
Falling barriers to international trade destroy manufacturing jobs in wealthy advanced economies. Discuss this statement. Do you
Ray Of Light [21]

Answer:

Yes. I agree

Explanation:

Due to a fall in barriers to international trade, <u>companies in wealthy advanced economies now find it easier to move their manufacturing activities to other countries</u> with lower labor rates so that they can reduce their manufacturing costs.

This move means that manufacturing companies in the wealthy advanced economies have reduced job opportunities and as such, workers in this industry will suffer.

7 0
2 years ago
Accounting scandals that led to investigations of such well-known companies as AOL Time Warner, Global Crossing, Enron, Qwest Co
Dvinal [7]

Answer: Overseeing the company’s financial accounting and financial reporting practices.

Explanation:

The Board of Directors are meant to act on behalf of the shareholders to protect their interest. An important part of this protection is to monitor the company books for irregularities due to the penchant for managers to deviate from upholding shareholder interests to following their own.

In the cases of AOL Time Warner, Global Crossing, Enron, Qwest Communications, and WorldCom, the Board's Audit Committee failed in dispatching their mandate and because of that failed mandate, allowed the Executives to manipulate financial data in very unethical and very illegal ways to make it seem like the companies were profitable when they were not.

5 0
2 years ago
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