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2 years ago

With _____________ demand the price changes, but the amount purchased remains the same.

1 answer:

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With perfectly inelastic demand the price changes, but the amount purchased remains the same. Prices or quantities are fixed and are unaffected by the other variable when demand is perfectly inelastic. When a price change results in an exact proportional change in the quantity required, this is known as unitary demand.

When a buyer's desire for a product does not fluctuate as much as a product's price change, this is known as inelastic demand. Demand is said to be inelastic when the price rises by 20% while the fall in demand is just 1%.This problem frequently arises with common household goods and services.

People will continue to buy roughly the same amount of goods or services after a price increase since their needs remain the same. Similar circumstances apply when prices are reduced; demand won't rise significantly.

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The following information is provided for Sacks Company. Cash $ 12,000 Supplies 4,500 Prepaid rent 2,000 Salaries expense 4,500

MakcuM [25]

Answer:

The amount of total liabilities is $5,000

Explanation:

In this question, we apply the accounting equation which is shown below:

Total assets = Total liabilities + owner's equity

where,

Total assets = Cash + supplies + prepaid rent + equipment

= $12,000 + $4,500 + $2,000 + $65,000

= $83,500

Owner's equity = common stock + ending retained earning balance

where,

Ending retained earning balance = Beginning retained earning balance + net income - dividend paid

The net income = Service revenue - Miscellaneous expenses - salaries expense

= $30,000 - $20,000 - $4,500

= $5,500

Now put these values to the above formula

So, the ending retained earning balance would equal to

= $8,000 + $5,500 - $3,000

= $10,500

And, the owner equity = $68,000 + $10,500 = $78,500

So, the total liabilities would be

= $83,500 - $78,500

= $5,000

4 0

3 years ago

Blanchard Company manufactures a single product that sells for $190 per unit and whose total variable costs are $150 per unit. T

iVinArrow [24]

Answer:

The amounts of pretax and after-tax income can the company expect to earn from these predicted changes are $1,795,000 and $1,436,000 respectively.

Explanation:

The sales less the variable cost gives the contribution margin.

The contribution margin less the fixed cost gives the net operating income. Furthermore, net income is the difference between the total sales and the total costs (fixed and variable).

Both sales and variable cost are dependent on the number of units sold.

with these expected changes,

Pretax Income

= 40,500($205 - $145) - $635,000

= $1,795,000

After tax income

= 80% * $1,795,000

= $1,436,000

4 0

3 years ago

What is the difference between marginal revenue and total revenue ?

Daniel [21]

Answer:

Explanation:

Total revenue is the amount of money you got for selling all of your products/services.

Marginal revenue is the amount of money you got for selling the last unit of goods or services.

6 0

3 years ago

Michigan Cranberry Company sold $10 million worth of cranberries it produced. In producing cranberries, it purchased $1 million

drek231 [11]

Answer:

$9 million

Explanation:

Gross domestic product is defined as the total monetary value of all goods and services produced by a country in a given period. It is used to measure the countries wealth and economic growth .

GDP can be calculated based on expenditure, production, or by income.

Types of GDP measurements include real GDP, nominal GDP, GDP growth rate, and GDP per capita.

Gross domestic product= Total output - intermediate goods in production {products from Canada}

Gross domestic product= 10 million- 1 million

Gross domestic product= $9 million

3 0

4 years ago

Read 2 more answers

Sunshield is a company that manufactures bottles of sunscreen. Below is basic information related to Sunshield's 2019 operations

GenaCL600 [577]

Answer:

Complete the following statements: <u>THEORETICAL CAPACITY</u> would result in the largest production volume variance; <u>NONE OF THE CAPACITY CHOICES</u> would result in a favorable production volume variance.

a. theoretical capacity; none of the capacity choices

Explanation:

production volume variance = (actual unit quantity manufactured - budgeted unit quantity manufactured) x budgeted cost per unit

(actual production - theoretical capacity) x budgeted cost per unit = (250,000 - 275,000) x budgeted cost = 25,000 x budgeted cost

None of the capacity choices would result in a favorable variance because actual production was lower than all of them.

actual production 250,000 < theoretical 275,000

actual production 250,000 < practical 265,000

actual production 250,000 < normal 260,000

6 0

3 years ago