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2 years ago

We would expect the cross elasticity of demand between dress shirts and ties to be?

1 answer:

7 0

Dress shirts and ties are complementary goods and we know that complementary goods have a negative cross-price elasticity of demand which means an increase in the price of dress shirts will decrease the demand for ties (negative cross-price elasticity of demand)

Elasticity is the ability of a deformed body of material to return to its original shape and size when the force causing the deformation is removed. Bodies with this ability are said to behave (or react) elastically.

Consumer durables are an example of demand elastic products. Things you rarely buy, like a washing machine or a car, that you can move when the price goes up. For example, car discounts have been very successful in increasing car sales through price reductions.

Learn more about elasticity here

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On january 2, fafnir co. purchased a franchise with a finite useful life of 10 years for $50,000. an additional franchise fee of

skelet666 [1.2K]

The amount should Fafnir report as intangible asset - franchise is -

Purchase value of Franchise = $ 50,000

Life of Franchise = 10 years

Salvage value = $ 0 ( not given)

Since, no other methods of amortization are specifically mentioned, straight line method will be used.

Book value of Franchise = Purchase price - Amortization expenses

Book value of Franchise = $ 50,000 - [ ( $ 50,000 - $ 0) / 10 Years ]

Straight-line depreciation = ( Purchase price - Salvage value) / Number of years

Book value of Franchise = $ 50,000 - $ 5,000 = $ 45,000

The amount should Fafnir report as intangible asset - franchise is = $ 45,000

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4 years ago

Contour Autos competes against the global leaders in the automobile industry by developing and selling acceptable quality vehicl

alisha [4.7K]

Answer:

c. cost-leadership strategy

Explanation:

Contour Autos tend to decrease the price of the product and that the quality served of the product is acceptable and not degraded. In this manner as against the normal industry the company supplies same quality goods at lower prices.

This decreases the cost for consumers and therefore, it is termed as Cost-Leadership strategy.

The Company tends to lead in the market through lower cost of goods supplied with the same quality.

5 0

3 years ago

Peter Realtors, a real estate consulting firm, specializes in advising companies on potential new plant sites. The company uses

marissa [1.9K]

Answer:

1. Hourly Direct Labor Cost rate = Direct Labor cost / Direct Labor hours

Hourly Direct Labor Cost rate = 2,500,000 / 25,000

Hourly Direct Labor Cost rate = $100 per hour

Computation of Indirect cost

Office Rent $320,000

Support staff salaries $1,260,000

Utilities $420,000

Total Indirect Costs $2,000,000

Predetermined indirect cost allocation rate = = Total Estimated indirect cost / Total estimated direct labor cost = 2,000,000 / 2,500,000 = 80% of Direct Cost

2. Direct Labor $25,000 (250 * 100)

Indirect Cost $20,000 (25,000 * 80%)

Total Predicted cost $45,000

3. Predicted cost $45,000

Desired Profit $22,500 (50% of $45,000)

Required Service revenue $67,500

4 0

4 years ago

Cheyenne Corp. uses a perpetual inventory system. Data for product E2-D2 includes the following purchases. Date Number of Units

4vir4ik [10]

Answer:

The COGS for the June 1st sale is $17 per unit, and the COGS for the August 27th sale is $20 per unit.

Explanation:

Date Number of units Unit balance Unit cost Average cost

May 7 40 40 $17 $17

June 1 (20) 20 $17

July 28 30 50 $22 $20

August 27 (30) 20 $20

The average COGS after the purchase on July 28 = [(20 x $17) + (30 x $22)] / 50 = ($340 + $660) / 50 = $20

6 0

3 years ago

Jessica does not believe that the methods and processes for determining salary increases in her company are fair. As per this ex

krok68 [10]

Answer:

Procedural justice

Explanation:

Procedural justice is centered on the idea that there should be fairness in the process used in making decision or resolving disputes in a transparent way without being impartial, to ensure the process brings out the right outcomes.

Jessica believes that there’s a problem with the firm’s procedural justice as she believes her firm’s process and methods in determining increase in her salary is not fair enough.

8 0

3 years ago