Answer:
C. A decrease in the quantity demanded
Explanation:
Price Elasiticity
The law of demand and supply would usually hold that an increase in prices will result in a decrease in demand. Furthermore, an increase in demand generates a corresponding increasing in supply as well.
<u>When the demand of a product is sensitive to the changes in price, then we say that price of the product is elastic</u> but if the product demand not strongly influenced by price then we say that the pricing is inelastic.
In the case of the lettuce, we can say that the price is elastic, because there is a sensitive reaction between an increase in price from $1 to $2 which immediately leads to a halfing of the quantity demanded. The price is elastic such that an increase in price leads to a decrease in quantity demanded.
Answer:
The variance is: $ 0.50 per direct labor hour.
Explanation:
Actual payroll = $117,000/6000h = $19.50 per hour
So, if we compare this value with the standard rate of pay ($20 per direct labor hour) The variance is: $20.00 - $ 19.50 = $0.50 per hour
Answer:
$133,000 decrease
Explanation:
The computation of the impact on the operating income is shown below:
Sales for the year $1,052,000
Less:
Variable cost -$862,000
Contribution margin $190,000
Less:
Fixed cost for 30% of $190,000 -$57,000
Impact on the operating income $133,000
This amount reflects the decrease in the operating income
Answer:
Amount allocated to cost of goods sold = $2,520
Explanation:
Total inventory held during the complete month.
Beginning = 33 units @ $21 = $693
7 July = 116 units @ $22 = $2,552
22 July = 17 units @ $24 = $408
Closing inventory = 53 units.
Under LIFO method, there is sale of inventory which was last bought or purchased.
Here, as per LIFO,
Total units = 33 + 116 + 17 = 166 units.
Units in closing inventory = 53 units.
That means, 33 units from opening and 20 units from purchases made as on 7 July
33 units @ $21 = $693
20 units @ $22 = $440
Total carrying value of closing inventory = $1,133
Therefore, amount allocated to cost of goods sold = 17 units @ $24 and 96 units @ $22
= $2,520
Answer:
Competitive Advantage refers to those attributes which makes a company's products stand out in the market against those of it's competitors and helps it gain a competitive edge.
Managers usually use the following four tools to analyze competitive intelligence to develop competitive advantages:
- Michael Porter's generic strategies
- Michael Porter's five forces model
- Value Chain analysis which aims to identify the value added at each level of production and assign extra importance to those stages which contribute immensely to a product's value.
- SWOT Analysis which is strengths weaknesses opportunities and threats. To maximize strengths, identify and limit weaknesses, sense and grab opportunities and minimize or avoid threats.
