Answer:
The answer to the following question is: (-9.34)
Explanation:
Given that:
p = -0.07 x^2 - 0.7x + 6
The price elasticity of demand = ( change in quality / change in price)
= (dp / dx) (x/p)
= d / dx (-0.07 x^2 - 0.7x + 6) x / p
= (-0.14x - 0.7) x/ (-0.07 x^2 - 0.7x + 6)
elasticity = (-0.14x^2 - 0.7x) / (-0.07 x^2 - 0.7x + 6)
at x=5;
elasticity = (-0.14(5)^2 - 0.7(5)) / (-0.07 (5)^2 - 0.7(5) + 6)
= (-3.5 - 3.5) / (-1.75 - 3.5 + 6)
= -7/ 0.75 = -9.333
= -9.34
Answer:
The correct answer is option A.
Explanation:
The demand for cantaloupes is unitary elastic at price level $2.50. The demand curve here is linear and downward sloping. The elasticity of demand is 1.
In this linear demand curve the lower portion will represent inelastic demand.
When the price level is reduced to $2 the demand will move to the lower portion of the curve, with fall in price and increase in demand.
So, at $2 price the demand will be inelastic, which means it will be between 0 and 1.
Answer: a) $18,605
Explanation:
The amount he can borrow today will be an amount that when grown at a rate of 7.5% per year will equal $20,000 in a year.
20,000 = Amount + ( Amount * rate * time)
20,000 = Amount + (7.5% * Amount)
2,000,000 = 1.075 * Amount
Amount = $18,605
Answer:
A. 12.3%
B. 68%
Explanation:
a.Calculation to determine the required return for the project
Required return=(0.62/1.62*5.7%)+(1/1.62*13.2%)+2%
Required return=0.022+0.081+2%
Required return=0.124*100
Required return=12.3%
Therefore the required return for the project will be 12.3%
b. Calculation to determine the maximum cost the company would be willing to pay for this project
Maximum cost =6.3/(12.3%-3%)
Maximum cost =6.3/9.3%
Maximum cost =0.67.7*100
Maximum cost =67.7%
Maximum cost=68% (Approximately)
Therefore the maximum cost the company would be willing to pay for this project will be 68%
Answer:
B) $56,750
Explanation:
Direct materials cost $27,500
Direct labor cost$13,000
As manufacturing overhead rate is based on a percentage of direct labor cost so dividing the manufacturing overheads by direct labor costs we get =$1,050,000,/$840,000= 1.25
Multiplying this rate with the actual overheads we get 1.25* 13000 = $16250
The total job cost would be = Direct materials cost+Direct labor cost + budgeted Overheads = $27,500
+$13,000+$16250= $56,750
