Price elasticity can be calculated using the attached formula where:
the first term represents the % change in quantity and the second term represents the % change in price
% change in quantity = (100-120) / (220/2) = -2/11 x 100 = -18.1818%
% change in price = (7-5) / (12/2) = 33.3333%
price elasticity = 18.1818/33.3333 = 0.55Note that the price elasticity is usually taken as an absolute value.
B. False. More real-world, relevant and important ideas to keep in mind when shopping for shoes and clothes are the associated quality of the manufacturer, which could be a brand name. Also, of utmost importance is the overall quality of the product with relation to its cost. The size of the item is also important. Do not buy an overpriced item, that does not fit properly and is made of cheap materials that quickly break.
To record On Jan 2, Callie Taylor received a $700 payment from a customer formerly billed for services performed. The journal entry to record this transaction would contain a debit to the cash account and a credit to the Accounts Receivable account.
<h3>What is Journal entry?</h3>
A journal entry exists as an act of keeping or creating records of any transactions either economic or non-economic. Transactions exist listed in an accounting journal that indicates a company's debit and credit balances. The journal entry can consist of several recordings, each of which exists either a debit or a credit.
A journal entry exists as a record of the business transactions in the accounting books of a business. A properly recorded journal entry consists of the correct date, amounts to be debited and credited, an explanation of the transaction, and a unique reference number. A journal entry exists as the first step in the accounting cycle.
Hence, To record On Jan 2, Callie Taylor received a $700 payment from a customer formerly billed for services performed. The journal entry to record this transaction would contain a debit to the cash account and a credit to the Accounts Receivable account.
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Answer:
Minimum transfer price = $21
Explanation:
<em>Transfer price is the price at which goods are exchange between branches or divisions of the same group</em>
<em>Where a division is operating at the less than the existing capacity, to optimist the group profit, the minimum transfer price should be set as follows</em>
Minimum transfer price = Variable cost
Note that the fixed of $12 per unit (i.e 33-21) is irrelevant for this purpose, whether or not Hinges produces, it will be incurred either way.
It is worthy of note that there is no opportunity cost associated with any transfer to the Doors division because Hinges is currently having excess capacity.
Therefore, any offering price equal to or above the variable cost of $21 would be acceptable and optimize the group profit.
Hence, the minimum transfer price = $21
Answer:
$120
Explanation:
Interest Expense on the Bonds payable is the coupon payment plus any amortized discount. As in this question there is no amortized discount because the bonds are issued on the par value.
As er given data
Face Value = $100,000
Coupon payment = $100,000 x 12% = $120 annually = $60 semiannually
Interest Expense for the year = Interest Paid on June 30 + Interest Paid on December 31
Interest Expense for the year = $60 + $60 = $120
