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stich3 [128]
1 year ago
13

If Starbucks raises its price by 5 percent and McDonald’s experiences a 0.5 percent increase in demand for its coffee, what is t

he cross-price elasticity of demand?
Instructions: Round your response to two decimal places. If you are entering a negative number be sure to include a negative sign (-) in front of that number.
Business
1 answer:
Gnesinka [82]1 year ago
6 0

Answer:

<em>Cross-price elasticity of demand = 0.1</em>

Explanation:

We have the formula to calculate the cross-price elasticity of demand as below:

<em>Cross-price elasticity of demand = % change in quantity demanded for product X/ % change in price of product Y</em>

<em />

Starbucks raises its price by 5 percent, so that <em>percentage changes in price of Starbucks' products</em> are 5

McDonald's experiences a 0.5 percent increase in demand for its coffee, so that <em>percentage changes in quantity demanded for McDonald's coffee </em>is 0.5

=> <em>Cross-price elasticity of demand = % changes in quantity demanded for McDonald's coffee/ %changes in price of Starbucks' products</em>

<em>= 0.5/5=  0.1</em>

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Answer:

(a) $9,000 per employee

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Explanation:

Given that,

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(a) Allocation rate:

= Total cost to be allocated ÷ Cost driver

= $450,000 ÷ 50

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(b) Cost assigned to A:

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= $9,000 × 28

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Cost assigned to B:

= Division Allocation Rate × Weight of base (No. of employees)

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6 0
1 year ago
In a small manufacturing facility, one welder is needed for every 200 hours of machine-hours or fewer in a month. The welder is
Lerok [7]

Answer:

$16250

Explanation:

For every 200 hours of needed work, $2500 must be paid. We divide the amount of hours needed for 200 to obtain the amount of times that $2500 are paid. Multiplying this number by $2500 we obtain the total expense gor salaried employees.

frac{{1300}{200}}x2500

6 0
2 years ago
Sal purchased a used toaster at a yard sale. The seller told Sal that although the toaster was more than 10 years old, she had n
inessss [21]

Answer:

<em><u>The manufacturer of the toaster would argue from the point of view of the warranty offered for the toaster.</u></em> In most electronic products, the manufacturer offers warranty ranging from 1 year to 5 years.

<em>For the toaster to have worked for more than 20 years without any problem shows that it was a good product. And, the warranty must have expired hence the need not to be held responsible for whatever happened to it.</em>

Explanation:

4 0
1 year ago
Vest Industries manufactures 40,000 components per year. The manufacturing cost of the components was determined as follows: Dir
torisob [31]

Answer:

If the company buys the component, income will decrease by $225,000.

Explanation:

Giving the following information:

Units= 40,000

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Variable overhead 45,000

An outside supplier has offered to sell the component for $12.75.

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We will take into account only the differential costs.

<u>Make in -house:</u>

Total cost= 75,000 + 120,000 + 45,000= $240,000

<u>Buy:</u>

Total cost= 40,000*12.75 - 45,000= $465,000

If the company buys the component, income will decrease by $225,000.

6 0
2 years ago
Annie invested in a set of stocks and made $4,000 in profit. She has learned that she will have to pay taxes on the profit she h
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State tax is 5%, so 0,05
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The real value of Annie's profit is 3800$



8 0
1 year ago
Read 2 more answers
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