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MArishka [77]
2 years ago
11

Opera Estate Girls' School is considering increasing its tuition to raise revenue. If the school believes that raising tuition w

ill increase revenue it is assuming that the demand for attending the school is ____ (A) inelastic.(B) unit elastic.(C) perfectly elastic.(D) elastic.
Business
1 answer:
ValentinkaMS [17]2 years ago
6 0

Answer: (A) inelastic

Explanation: In inelastic demand it states that by increasing the cost price it will create a proportionality in the total revenue ,that is revenue will also increase.In this case the demand of the buyer does not change, only the cost changes and the consumer will keep on buying the goods even after change in price.

Opera Estate Girls' School is also using this technique to increase the revenue,by increasing the tuition.Thus the correct option is option (A).

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Dietrick Corporation produces and sells two products. Data concerning those products for the most recent month appear below:
mrs_skeptik [129]

Answer:

b. $69,754  

b. $69,754  

b. $69,754  

b. $69,754  

b. $69,754  

b. $69,754  

b. $69,754  

b. $69,754

Explanation:

contribution = sales - variable cost

for Product B32L:

contribution = sales - variable cost

                     = 46,000 - 13800

                     = $32,200

for Product K84B:

contribution = sales - variable cost

                     = 27,000 - 14,670

                     = $12,330

total sales of the company = 46,000 + 27,000

                                             = $73,000

total contribution of the company = $32,200 + $12,330

                                                         = $44,530

cotribution margin ratio = contribution/sales

                                        = 44530/73000

                                        = 0.61

break even point  = fixed cost/cotribution margin ratio

                              = 42550/0.61

                              = $69,754

Therefore, The The break-even point for the entire company is closest to $69,754.

3 0
2 years ago
Records at Hal’s Accounting Services show the following costs for year 1. Direct materials and supplies $ 40,000 Employee costs
ruslelena [56]

Answer:

See answers below

Explanation:

a. Direct materials & supplies  $40,000 = $40,000 × 110%

= $44,000 × 20,000/25,000

= $35,200

Employee costs = $2,900,000 × 105%

= $3,045,000 × 20,000/25,000

= $2,346,000

Variable overhead = $600,000 × 100%

= $600,000 × 20,000/25000

= $480,000

Fixed overhead = $700,000 × 105%

= $735,000

b. Total costs per unit year 2 =

$3,596,000 / 20,000

= $179.81

6 0
2 years ago
A disadvantage of adding a salad bar to a school lunch menu would be ?
bearhunter [10]
The cost of adding more options. Supply and demand: would the students want to have salad for lunch, or would it go to waste?
5 0
2 years ago
Read 2 more answers
an instance where sellers should work to keep relationships with consumers is when they feel that the product
irina1246 [14]
An instance where sellers should work to keep relationships with consumers is when they feel that the product
5 0
2 years ago
MJ LTD is expected to grow at various rates over the next five years. The company just paid a $1.00 dividend. The company expect
Black_prince [1.1K]

Answer:

$21.859

Explanation:

According to the scenario, computation of the given data are as follow:-

Present Value = D0 × (1 + growth rate)^time ÷ (1 + Required Rate of Return)^time period

1st Year PV = $1 × (1 + 0.20)^1 ÷ (1+ 0.12)^1

                  = 1.20 ÷ 1.12

                 = 1.071

2nd Year PV = $1 × (1 + 0.20)^2 ÷ (1+ 0.12)^2

                   = $1 × (1.44) ÷ 1.254

                  = $1.148

3rd Year PV = $1 × ( 1 + 0.20)^2 × (1 + 0.10) ÷ (1 + 0.12)^3

                    = $1 × (1.44) × (1.10) ÷ 1.405

                     = $1.127

4th Year PV = $1 × ( 1 + 0.20)^2 × (1 + 0.10)^2 ÷ ( 1 +0.12)^4

                    = $1 × (1.44) × (1.21) ÷ 1.574

                     = $1.107

5th Year PV = $1 × (1 + 0.20)^2 × ( 1 +0.10)^3 ÷ (1 + 0.12)^5

                     = $1 × (1.44) × (1.331) ÷ 1.762

                     = $1.088

6th Year PV = $1 × (1 + 0.20)^2 × (1 + .10)^3 × (1.05) ÷ [(0.12 - 0.05) × (1+.12)^5]

= $1 × (1.44) × (1.331) × (1.05) ÷ (0.07) ×  (1.762)

= $2.012 ÷ 0.1233

= $16.318

Now

Share’s Current Value is

= $1.071 + $1.148 + $1.127 + $1.107 + $1.088 + $16.318

= $21.859

We simply applied the above formula

5 0
2 years ago
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