$15,400
Why:
Original cost is $22,000 and 30% of that is $6,600.
$22,000 - $6,600 = $15,400
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>
Answer:
Option (B) is correct.
Explanation:
Given that,
Selling price of a product = $140 per textbook
Variable expenses = $25 per book
Books sold per year = 6,000 books (It is the break even point)
The break even point indicates that there is no profit or loss incurred at the sales.
This means that the sales revenue is equal to the total cost incurred to produced these goods.
Sales per unit - Variable cost per unit - Fixed costs per unit = 0
$140 - $25 - Fixed costs = 0
$115 = Fixed costs per unit
Therefore, the total amount of fixed cost is calculated as follows:
= Fixed cost per unit × Number of books sold
= $115 × 6,000
= $690,000
Answer:
The overhead application rate is 1.8
Explanation:
In the question both the estimated and actual overhead cost , material and labor cost are provided -
ESTIMATED ACTUAL
Overhead cost $396,000 $418,000
Material cost $410,000 $413,200
Direct cost $220,000 $224,000
Overhead application rate can be calculated by dividing the total budgeted overhead cost by direct labor cost.
= Budgeted overhead cost / direct labor cost
= $396,000 / $220,000
= 1.8
Answer:
a short-run decision because the number of aircraft is held constant while the labor input is changed.
Explanation:
In the short run, at least one variable or factor of production is fixed and cannot be changed. In the long run, all factors of production can be changed.
In this case, the number of aircraft is the fixed factor of production (capital) while labor is variable because more pilots can be hired. Regulation state that pilots must rest a certain amount of time in between flights, so if you want to increase the amount of flights you need to hire more pilots and cabin crews since regulations do not require planes to rest.
