Answer:
c. Inelastic demand
Explanation:
Inelastic demand means that the quantity ordered on a product is not affected by changes in price. The demand is relatively constant regardless of a change in price.
Coffee and sugar are complementary goods. Usually, price fluctuation in one of them should affect the demand of the other. In this case, changes in sugar prices have not affected the demand for coffee. If price changes do not affect demand, then the product has inelastic demand.
Question Completion:
We assume that the variable manufacturing cost is $55 per unit.
Answer:
The change in operating income = $60,000
Explanation:
a) Data and Calculations:
Special order = 3,000 units
Price of special order = $75 per unit
Variable cost per unit (assumed) = $55
Fixed costs = unchanged
Variable marketing and administrative costs = unchanged
The change in operating income = $60,000 (($75 - $55) * 3,000)
b) Given the above scenario and the assumed variable cost per unit of $55, the change in operating income will be a total of $60,000, which adds to the normal business of the company.
Answer:
The answer is A.
Explanation:
Closing/Ending balance in Allowance for Doubtful Accounts = Unadjusted credit (debit) balance in Allowance for Doubtful Accounts + Bad Debt Expense
To get Bad Debt Expense, we re-write the formula:.
Closing/Ending balance in Allowance for Doubtful Accounts − Unadjusted ending credit (debit) balance in Allowance for Doubtful Accounts
Ending/Closing method balance in allowance for doubtful debt= $5,000
Unadjusted ending credit (debit) balance in Allowance for Doubtful Accounts =$500
So we have:
= $5,000 − $500
= $4,500
Answer:
The equivalent units for conversion costs under the FIFO method is 59,130 liters.
Explanation:
<u>Calculation of Equivalent units of Production for Conversion Costs</u>
Method : FIFO
To Compete Opening Work in Process (5,700 × 80%) = 4,560
Started and Completed (58,100 - 5,700) × 100% = 52,400
Closing Work in Process (3,100 × 70%) = 2,170
Equivalent units of Production for Conversion Costs = 59,130
If the marginal cost curve lies below the average cost curve then as output increases, <u>average total cost </u><u>is </u><u>decreasing. </u>
<h3>What is marginal cost?</h3>
- It shows the cost of producing an additional unit.
When this measure is decreasing, it means that every time another unit is produced, less cost is incurred. This will lead to average total cost falling because there is less cost but more output.
Find out more on marginal cost at brainly.com/question/10830860.
