<span>Grapes are a(n) "normal good" with an income elasticity of demand of "0.8". A normal good is a good for which an increase in income results in increased demand, while decreased income results in decreased demand. Thus, we know that the first blank is "normal good" by the definition of a normal good becuase median income fell and demand for grapes fell. The X elasticity of demand is given by (%change in Demand)/(%change in X), where x is any economic variable (income in this case). Thus, to find the elasticity, we divide 12% by 15%. 12%/15%=.08.</span>
Answer:
170,146
Explanation:
$250,000 / (1.08)5= 170,146
Answer:
O $ 900,000
Explanation:
When a fee is received in advance for a service yet to be rendered, the revenue for such fee is said to be unearned. The entries required are
Debit Cash account and Credit Unearned fees or deferred revenue.
As the service is performed and the revenue is earned, debit Unearned fees and credit revenue.
Given that
- the specialized directory that is published semiannually and shipped to subscribers on April 15 and October 15 and
- Subscriptions received after the March 31 and September 30 cutoff dates are held for the next publication and
- Cash from subscribers is received evenly during the year and is credited to deferred subscription revenue
The amount to be deferred is the sum of the amounts collected after September 30 (from October to December year 2
= 3/12 * $3,600,000
= $900,000
Answer:
Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as Product costs and expenses when the goods are sold, Option D.
Explanation:
Indirect costs are also manufacturing overheads which cannot be directly put on the product but they have to be allocated in some way. So, these are treated as 'product costs' and 'expenses' when the goods are sold. They are not period costs as per Option A and option C. Option B which says that it is product costs when incurred, which is also incorrect.
Examples of indirect costs can be accounting and legal expenses, rent, telephone expenses, salaries of administrative.
Direct costs includes the costs of direct 'labor', materials and commissions.
Answer:
Side opposite the river = 120 ft
Other sides = 240 ft
Explanation:
Let 'R' denote the length of fence opposite to the river and 'L' denote the length of the other two sides.
The cost as a function of R is:
The value of R for which the derivate of the cost function is zero is the length that minimizes cost:
If R is 120 ft, then the value of L is:
The dimensions that will minimize costs are:
Side opposite the river = 120 ft
Other sides = 240 ft
