Answer:
Oct 31
Dr Cash $7,201
Cr Notes receivable—R. Albany $7,000
Cr Interest revenue $201
Explanation:
Preparation of Jun's journal entry assuming the note is honored by the customer on October 31, of that same year
Oct 31
Dr Cash $7,201
($7,000+$201)
Cr Notes receivable—R. Albany $7,000
Cr Interest revenue $201
(11.5%*7,000*90/360)
Answer:
The answer is D.
Explanation:
The demand curve faced by perfectly competitive firm is horizontal. This means that if individual firm charges price above the market price, it will not sell anything.
The curve is the same as marginal revenue curve because change in total revenue from selling one more unit(marginal revenue) is the constant market price.
And it holds in perfect market that price equals marginal revenue (P=MR).
The correct option is D.
Answer:
true...........................
Answer:
In the first range of prices (with PED 15 - 2.5) as the price of the good or service falls, total revenue should increase. Imagine that a 1% reduction in price will result in a 15% increase in quantity demanded. The same happens when PED = 2.5, since a 1% reduction will increase quantity demanded by 2.5%.
e.g. price = $100, quantity demanded = 100, total revenue = $10,000
- price falls to $99, quantity demanded increases to 115, total revenue = $11,385
- price falls to $99, quantity demanded increases to 102.5, total revenue = $10,147.50
On the other range (PED = 1.5 - 0.75) as the price of the good or service falls, at first total revenue will increase but then it will decrease.
e.g. price = $100, quantity demanded = 100, total revenue = $10,000
- price falls to $99, quantity demanded increases to 101.5, total revenue = $10,048.50
- price falls to $99, quantity demanded increases to 100.75, total revenue = $9,974.25
Answer:
The sales revenue would be 170,000 if Hammer Time implements the decrease in selling price.
This would generate a decrease of $10,000 in the sales revenue
Explanation:
Understanding the way sales revenue is generated:
If the selling price drops to $10
and units sold increase by 5,000
Comparing with the previous year:
This policy decrease the sales revenue which makes the business less profitable.
