Answer: Her income elasticity of demand for cottage cheese is <em><u>0.3333</u></em> making it a <em><u>normal and necessary</u></em> good.
The income elasticity of demand is given by :
The percentage change in income is given as 60%. We calculate the percentage change in quantity demanded as follows:
Substituting the value above in the income elasticity demand formula we get,
<u>YED = 0.33333</u>
Since the income elasticity is positive, and since Shawna buys more cottage cheese after an increase in income, we can classify this good as a normal good.
Since the income elasticity is between 0 and 1 we can also conclude that cottage cheese is also a essential good or a necessity.
Answer:
Economic exposure.
Explanation:
Economic exposure is also known as operating exporter is known as a phenomenon where a business's cash flow is affected by currency rate fluctuations. It occurs over the long term and affects product value.
Businesses protect themselves from economic exposure by operational strategies mostly through diversification, and currency risk mitigation strategies.
In this instance Majestic Co a United States company has a competitor in Belgium and so tend to be affected by foreign exchange fluctuations of the dollar to Belgium currency.
Answer:
the acid-test ratio is 1.5 times
Explanation:
The computation of the acid-test ratio is as follows:
Acid test Ratio = Quick assets ÷ current liabilities
where,
Quick Assets is
= Cash + short tern investments + Account receivable
= $3,500 + $50,000 + $56,000
= $109,500
And, the current liabilities is $73,000
So, the acid-test ratio is
= $109,500 ÷ $73,000
= 1.5 times
Hence, the acid-test ratio is 1.5 times
Answer:
The answer is e. 40,500.
Explanation:
To find out the balance for account payable in 2014, we need to recall to the Accounting equation:
Asset = Liabilities + Owner's Equity
Applying in the question, we replace the balance of asset items, liability items and equity items in 2014 to find the answer:
Account Receivable + Cash + Inventories + Net Fixed Asset = Account Payable + Accruals + Common Stock + Long term debt + Notes payable + Retained earnings
=> 44,500 + 98,000 + 60,800 + 121,500 = Account Payable + 16,200 + 81,000 + 89,100 + 37,200 + 60,800 <=> Account Payable = $40,500.
So, the answer is e. 40,500.
Answer:
C. total variable cost increases
Explanation:
Fixed cost, as the name states, do not change with a variation on production output, therefore an increase in the sales volume does not change the fixed cost. Meanwhile, variable cost is the cost associated with the production of each unit, and thus depends on the sales volume. An increase in the volume of sales leads to an increase in total variable cost.
Therefore, the answer is C.
