Which of the following is most likely to have inelastic demand?

Business Solutions sells upscale modular desk units and office chairs in the ratio of 3:2 (desk unit:chair). The selling prices

Doss [256]

Answer:

Results are below.

Explanation:

First, we need to calculate the selling price per composite unit:

selling price per composite unit= 1,280*0.6 + 530*0.4

selling price per composite unit= $980

Now, the unitary variable cost per composite unit:

Variable cost per composite unit= 780*0.6 + 280*0.4

Variable cost per composite unit= $580

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per composite unit

Break-even point in units= 150,000 / (980 - 580)

Break-even point in units= 375

Finally, the number of units per product:

Desks= 375*0.6= 225

Chairs= 375*0.4= 150

4 0

3 years ago

Cost Flow Methods The following three identical units of Item LO3V are purchased during April: Item Beta Units Cost April 2 Purc

Lelechka [254]

Answer:

a. Gross Profit =$89, Ending Inventory = $640

b. Gross Profit =$83, Ending Inventory = $631

c. Gross Profit =$86, Ending Inventory = $634

Explanation:

FIFO

a.Gross Profit

Sales ( 1 unit × $403) $403

Less Cost of Sales ( 1 unit × $314) ($314)

Gross Profit $89

b. Ending Inventory

Ending Inventory = Units Left × Earliest Price

= 2 units × $320

= $640

LIFO

a.Gross Profit

Sales ( 1 unit × $403) $403

Less Cost of Sales ( 1 unit × $320) ($320)

Gross Profit $83

b. Ending Inventory

Ending Inventory : 1 unit × $314 = $314

1 unit × $317 = $317

Total = $631

Weighted Average Cost method

a.Gross Profit

Sales ( 1 unit × $403) $403

Less Cost of Sales ( 1 unit × $317) ($317)

Gross Profit $86

b. Ending Inventory

Ending Inventory = Units Left × Average Price

= 2 units × $317

= $634

4 0

3 years ago

Case Study: Capitalization versus Expensing

Solnce55 [7]

Answer:

Please see attachment

Explanation:

Please see attachment

7 0

3 years ago

Your company has a cost differentiation strategy regarding its products. there are several new entrants into your saturated mark

gtnhenbr [62]

1) Change the nature of the product

2) Give away discounts

3) Reduce the price of the product compared to the competitiveness of the market

7 0

3 years ago

For the last two months thomas has been worried that something bad is going to happen. he can't pinpoint the source of this feel

yan [13]

Thomas may be suffering from generalised anxiety as far as the situation describes. Generalised anxiety disorder is defined as the excessive worrying of an aspect of life for a reason that is vague. They worry too much may it could either be family, studying, or even their health.

5 0

3 years ago