Answer: Inelastic
Explanation:
Based on the information given, we would calculate the elasticity of demand which would be:
= (Change in Quantity / Change in Price) (Initial Price/ Initial Quantity)
Change in Quantity = 1800 - 2000 = -200
Change in Price = 50 - 40 = 10
Initial Price = 40
Initial Quantity = 2000
Elasticity of demand would then be:
= (-200/10)(40/2000)
= (-20)(0.02)
= -0.4
Since elasticity of demand is less than 1, it is an inelastic demand.
Answer:
sandwiches
Explanation:
supplier has plenty of spare capacity to increase output
high stocks levels are available to meet raising demand
short production time frame to get products to market
easy of factor substitution is high
Answer:
Omar should get budgeting advice from a consumer credit counselor
Explanation:
It is apparent from the question that Omar is having a financial problems as he is finding it difficult to meet up with his student loan and credit cards repayment plan.
It is advisable at this point that he should engage the service of a consumer credit counselor for budgeting advice to improve on his situation.
Consumer credit counselling service is a form of service that help to proffer solution to financial problems through financial education , budgeting assistance and debt management.
Answer:
$4,850
Explanation:
The computation is shown below:
Total cost when the production is 13,000 units
Direct materials $10,920
Direct labor $14,690
Variable overhead $16,380
Total $41,900
And, the other case
Their new cost on supplier offer is
= $2.85 × 13,000 units
= $37,050
In the case when the order is accepted So the net income would increased by
= $41,900 - $37,050
= $4,850
Answer: a). Debit Factory Payroll Payable $160,000; credit Cash $160,000.
Explanation: Direct labor refers to the manpower used in production. They are the factory workers involved in using the raw materials to produce finished goods.
Expense on direct labor is provided for during the production by a debit to factory payroll expense and a credit to factory payroll payable.
As such, the journal entry will be a debit to factory payroll payable $160,000 and a credit to cash $160,000. This means cash will reduce by $160,000 as the factory workers are paid while payables which is a provision account will reduce as well on the cash book by the same amount.
