Answer:
The insurance expense on the annual income statement for the year ended December 31, 2019 will be D. $337.50
Explanation:
The company paid the $1,350 premium on a three-year insurance policy.
The insurance expense per year = $1,350/3 = $450
From April 1, 2019 to December 31, 2019, the company had bought the insurance for 9 months.
The insurance expense on the annual income statement for the year ended December 31, 2019 = $450/12x9 = $337.5
Answer:Please refer to Explanation
Explanation:
Cross Price Elasticity of Demand is a very useful tool in Economics to ascertain if goods are compliments or Substitutes.
Cross Price Elasticity of Demand (CPSD) measures the change in demand in one good due to a change in price is the other good.
If the CPSD is negative then the goods are Compliments meaning that they are used together which is why when the price of one good goes down, the demand of the compliment goes up because more of the original good will be bought due to the lower price.
If the CPSD is Positive, it means that they are Substitutes and a Decrease in price in one good leads to a decrease in demand for the other good because people will demand less of it and switch to the former (now cheaper) good.
The formula is,
= % change in Quantity Demanded of Product A /% change in Price of Product B
a. Splishy splashies and Flopsicles
CPSD = -18%/-1%
= 18%
The CPSD for both these products is 18% which is a positive figure. This means that they are Substitutes and <u>should not be marketed together. </u>
b. Splishy Splashies and Flopsicles
CPSD = 3%/-1%
= -3%
With the CPSD being a negative figure here, these goods are Compliments.
Splishy Splashies and Flopsicles <u>should be Marketed together</u> as they compliment each other.
Answer: False
Explanation:
There is a relationship between the level of education that a person receives and the lifetime earnings. It should be noted that the more education that a person receives, the higher the lifetime earnings of such person will be.
For example, someone who has a doctorate degree is expected to have a higher lifetime earnings than someone who has a high school degree.
Therefore, based on the explanation given, the statement is false.
Answer:
a.
i. 4.7 times
ii. 77.1 days
b
i. 7 times
ii. 52.1 days
Explanation:
Inventory turnover = cost of goods sold / average inventory
average inventory for 2016 = ( 87,750 + 92,500 ) / 2 = $90,125
Inventory turnover $426,650 / $90,125 = 4.7 times
Days' sales in inventory = 365 / inventory turnover = 77.1 days
for 2017
inventory turnover = cost of goods sold / average inventory
average inventory for 2017 = ( 97,400 + 87,750 ) / 2 = $92,575
Inventory turnover $643,825 / $92,575 = 7.0 times
Days' sales in inventory = 365 / inventory turnover = 52.1 days
