Answer:
$9,000,000
Explanation:
The computation of the depletion expense for the current year is shown below:
Depletion rate per unit is
= Acquired mineral rights ÷ Estimated mineral deposit
= $67,500,000 ÷ 30,000,000 tons
= $2.25 per ton
If the 4,000,000 tons were mined and sold, so the depletion expense is
= $2.25 × 4,000,000 tons
= $9,000,000
It means that quantity demanded will increase by 3.5% for every 1% decrease in price.
<h3>What is the price elasticity of demand?</h3>
Price elasticity of demand measures the percentage change in quantity demanded when the price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes. When price increases, quantity demanded decreases by more of than the percentage change in price. When price increases, the quantity demanded declines.
To learn more about price elasticity of demand, please check: brainly.com/question/18850846
Answer:
A. its operating income for the period will be higher than under absorption costing
Explanation:
As we know that
Under absorption costing, the fixed cost is divided on the number of units produced
And under the variable costing, the fixed cost is considered as a cost selling of goods so the absorption costing method will be lower than the value of finished goods.
As per the question, the started finished goods will help and sell the whole production and starting balance that means under absorption costing of goods which is to be sold is much than variable costing.
Answer:
You pay your neighbor $400 to cut the tree down.
Explanation:
You pay your neighbor $400 to cut the tree down.
The amount paid to the neighbor is to be more than the value of the tree as your neighbour values and this will satisfy as per the Coase Theorem which states that amount paid for the damage caused due to negative externality should be more than the value that the person attaches to production of externality.Also, it is to be lower than the cost which the person has to bear because of mango production and thus as a result both gain $100 in the process.
