Ask question

Ask question

All categories

2 years ago

8

A business initially sells their product to customers for $50. They find that many people are buying their product so they rise

the price to $100. Which of the following is a likely response that they will receive from the customers?

1 answer:

pav-90 [236]2 years ago

8 0

Answer: It will reduce in demand

Explanation: If you raise a price customers are less likely to buy it when it’s at a higher price

You might be interested in

A business school Dean wanted to test the null hypothesis that the mean GPA upon graduation is the same for Marketing, Managemen

m_a_m_a [10]

Answer: Option A. ANOVA: Single factor

ANOVA or Analysis of Variance is a statistical technique that is used to determine if the difference between the means of three or more independent groups of data are statistically significant.

ANOVA was developed in order to cater to the necessity of having a statistical technique to compare the difference between the means of three or more groups of data.

In this question the Dean wants to test the null hypothesis that the mean GPA is the same for Marketing, Management, Accounting and Finance majors. Since he needs to compare four independent groups of data, single factor ANOVA is the most appropriate Excel tool.

6 0

2 years ago

Hayes Bakery has sales of $30,600, costs of $15,350, an addition to retained earnings of $4,221, dividends paid of $469, interes

scZoUnD [109]

Answer:

$8,013

Explanation:

The computation of the amount of the depreciation expense is shown below:

The net income is

= An addition to retained earnings + cash dividend paid

= $4,221 + $469

= $4,690

Now the earning before tax

= (Net income) ÷ (1 - tax rate)

= ($4,690) ÷(1 - 0.21)

= $5,937

Now the earning before tax and interest is

= $5,937 + $1,300

= $7,237

So, the depreciation expense is

= $30,600 - $15,350 - $7,237

= $8,013

8 0

1 year ago

The Nelson Company has $1,750,000 in current assets and $700,000 in current liabilities. Its initial inventory level is $490,000

aleksley [76]

Answer:

(a) Short-term debt can increase by a maximum of $466,666.67 without pushing its current ratio below 1.9

(b) The firm's quick ratio after Nelson has raised the maximum amount of short-term funds is 1.34

Explanation:

Current assets = $1,750,000

Current liabilities = $700,000

Initial inventory level = $490,000

Current ratio = Current assets ÷ Current liabilities

= $1,750,000 ÷ $700,000 = 2.5

1.9 = (Current assets + $\Delta{NP$ ) ÷ (Current liabilities + $\Delta{NP$ )

1.9 = ($1,750,000 + $\Delta{NP$ ) ÷ ($700,000 + $\Delta{NP$ )

1.9 × ($700,000 + $\Delta{NP$ ) = ($1,750,000 + $\Delta{NP$ )

$1,330,000 + $1.9\Delta{NP$ = $1,750,000 + $\Delta{NP$

$0.9\Delta{NP$ = $1,750,000 - $1,330,000

$\Delta{NP$ = $466,666.67

Short-term debt can increase by a maximum of $466,666.67 without pushing its current ratio below 1.9

Quick ratio = (Current assets - Inventories) ÷ Current liabilities

= $937,500 ÷ $700,000

= 1.34

5 0

2 years ago

Letang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $265,00

const2013 [10]

Answer:

System A EAC = -$137,679.01

System B EAC = -$127,558.81

Explanation:

Denote i = discount rate = 8%; n= number of compounding period

For system A, the after tax cost of operation is 73,000 x (1-21%) = 57,670

- NPV of system A = -265,000 - [ 57,670/8%] / [ 1 - (1+8%)^-4] = -$456,010.3549

- EAC = ( NPV x i ) / [ 1 - (1+i)^-n) = (-456,010.3549 x 8%) / ( 1 - 1.08^-4) = -$137,679.01

For system B, the after tax cost of operation is 67,000 x (1-21%) = 52,930

- NPV of system B = -345,000 - [ 52,930/8%] / [ 1 - (1+8%)^-6] = -$589,689.0206

- EAC = ( NPV x i ) / [ 1 - (1+i)^-n) = (-589,689.0206 x 8%) / ( 1 - 1.08^-6) = -$127,558.81

4 0

1 year ago

Manufacturing cost data for Orlando Company, which uses a job order cost system, are presented below. Indicate the missing amoun

mafiozo [28]

Answer:

a= 54796

h= 80,824

d=117916

i=67915.68

e=$ 352196

b= 58,800

f= 373496

j= 234500

c= 15100

k= 1900

g=3721596

Explanation:

Orlando Company

Manufacturing Cost Data

Case A Case B Case C

Direct materials used (a) $91,200 $69,000

a=149,800 - 42,804- 52,200 54796

Direct labor 52,200 143,800 (h)

$69,000 +x+0.82h= 216100

1.82h= 216100-69000

h= 147100/1.82= 80,824 80,824

Manufacturing overhead applied 42,804 (d) (i)

d=82% of 143,800=117916 117916

i=82% of 80824 = 67915.68 67915.68

Total manufacturing costs 149,800 (e) 216,100

e=$91,200+ 143,800+ 117916 352196

Work in process 1/1/14 (b) 21,300 18,400

b=208,600- 149,800 58,800

Total cost of work in process 208,600 (f) (j)

f=352196+ 21,300 373496

j=216,100 + 18,400 234500

Work in process 12/31/14 (c) 11,900 (k)

c=208,600 - 193,500 15100

k=234500 -232,600 1900

Cost of goods manufactured 193,500 (g) 232,600

g=373496- 11,900 3721596

The formulas used are given below.

Total Manufacturing Cost = Direct Materials + Direct Labor + Factory Overheads

Total cost of work in process= Total manufacturing costs+ Opening Work in process

Cost of goods manufactured= Total cost of work in process - Closing Work in process

In each of these if two amounts are known we can find the third one.We can also do rearrange these to find the required amounts.The calculation of each of the missing amount has been done next to it.

5 0

2 years ago