A. Interest is charged only on the amount you actually borrow
Answer:
It will lose revenue
Explanation:
An elastic demand (which are found in goods or services that have substitutes) moves proportionally to price changes.
It means that, if the price of the good rise, then the demand will diminish. The opposite works the same, if the price reduces, then the demand will grow.
On the other hand, elasticity refers to the impact of the prices on the demand of the goods and there are key factors that influence this relation:
- Necessity of the good (or product)
- The existence of substitutes goods or alternatives to those goods
- Time
Answer:
Compute the decrease in net income that the company should anticipate in the off season
Net income decrease in $2475
Explanation:
contribution margin=price-associate cost
55%=100%-45%
Revenue 4500 100%
Cost 2025 45%
Contribution margin 2475 55%
Answer:
No sale discount,
Shipping cost will be paid by buyer (Coleman Company)
Explanation:
2/10 means if payment is done within 10 days then 2% discount, n/30 means to pay full amount within 30 days. As payment was made after 12 days, so no discount. FOb means free on board shipping point, which means after product left port of supplier country then buyer will be responsible for goods and its shipping cost.
Answer:
Net income will be decreased by $150.
Explanation:
Given:
The credit balance of interest payable (Opening) = $200
Credit balance of interest payable (Closing) = $50
Net income will be decreased by $150.
Decreased net income = credit balance of payable (Opening) - credit balance (Closing)
Decreased net income = $200 - $50
Decreased net income = $150
The interest of $150 was paid which would reduce the net profit.
