Because price and total revenue always move simultaneously, the total revenue test for elasticity does not apply to supply.
<h3>A total revenue test: what is it?</h3>
A total revenue test calculates the change in total revenue due to a change in a product or service's price in order to estimate the price elasticity of demand.
<h3>What connection does elasticity have with total revenue?</h3>
When demand is elastic (price elasticity > 1), there is a negative relationship between price and total revenue, which means that price increases will result in drops in total revenue. When demand is unit elastic (price elasticity = 1), price changes have no impact on overall revenue.
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Answer:
1. The expected post-retirement benefit obligation at the end of 2021 is $196,000, the present value of total net costs of providing health care benefits.
2. Calculation of the accumulated post-retirement benefit obligation at the end of 2021 is as below:
APBO = EPBO * Full eligibility period / Attribution period
APBO = $196,000 * 2 / (2+28)
APBO = $196,000 * 2/30
APBO = $13066.66666666667
APBO = $13,066.67
Thus, accumulated post-retirement benefit obligation at the end of 2021 is $13,066.67.
Answer: $43.32
Explanation:
The Intrinsic value of Home Depot Stock will be the present value of all the future cashflows from the stock.
Discounting with a rate of 18%, the intrinsic value is;
= 1.31/ ( 1 + 18%) + 1.58 / ( 1 + 18%)² + 1.54/ ( 1 + 18%)³ + 1.56 ( 1 + 18%) ⁴ + 76.25 / ( 1 + 18%) ⁴
= 1.11 + 1.1347 + 0.937 + 0.8046 + 39.3289
= 43.3152
= $43.32
Answer:
$7,000
Explanation:
The insurance company will actually save some money, but I doubt that your company does. We can assume that the seminar will be paid by the insurance company and it costs $15,000. After watching that seminar, accidents should decrease by 25% of an equivalent to = $88,000 x 25% = $22,000
Since the insurance company will save $22,000 with the seminar and the cost of the seminar is $15,000, its net gain = $22,000 - $15,000 = $7,000
