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weqwewe [10]
3 years ago
5

Suppose an airline determines that its customers traveling for business have inelastic demand and its customers traveling for va

cations have an elastic demand. If the airline's objective is to increase total revenue, it should A. decrease the price charged to vacationers and increase the price charged to business travelers. B. decrease the price to both groups of customers. C. increase the price charged to vacationers and decrease the price charged to business travelers. D. increase the price for both groups of customers.
Business
1 answer:
Ray Of Light [21]3 years ago
7 0

Answer: If the airline's objective is to increase total revenue, it should <u><em>decrease the price charged to vacationers and increase the price charged to business travelers.</em></u>

<u><em /></u>

Explanation:

Here the objective of the airline is to increase total revenue,  therefore airline should practice price discrimination i.e. charge different prices to vacation travelers and business travelers.

Since customers traveling for vacations have elastic demand i.e. ε > 1 , so if airline reduces the price of air ticket for them, then there will be a percentage decrease in the price that will be less then the percentage increase in the number of vacation travelers.

Therefore, total revenue will increase with decreasing price charged to vacationers.

Whereas;

The demand of business travelers is inelastic  i.e. ε < 1, so if airline increases the price of air ticket for business travelers, then there will be a percentage increase in the price that will be more then the percentage decrease in the number of vacation travelers

Therefore, total revenue will increase with increasing price charged to business travelers.

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Saint Nick Enterprises has 17,500 shares of common stock outstanding at a price of $69 per share. The company has two bond issue
mihalych1998 [28]

Answer:

total weight of debt = 0.343 or 34.3%

Explanation:

stock's market value = 17,500 x $69 = $1,207,500

bond₁'s market value = $250,000 x 101.5% = $256,750

bond₂'s market value = $350,000 x 106.5% = $372,750

total market value of the firm = $1,837,000

weighted capital structure:

                                       market value            weight

stocks                             $1,207,500               0.657

bond₁                              $256,750                  0.140

bond₂                              $372,750                  0.203

total                                $1,837,000                 1

total weight of debt = 0.343 or 34.3%

8 0
2 years ago
The human resource department of Winston Memorial Hospital has played a leading role in helping the hospital become a high-perfo
sesenic [268]

Answer:

Letter b is correct. <em>Making sure employees know how their work contributes to the hospital's mission</em>

Explanation:

Performance management is characterized as a set of techniques and practices that together will help to verify the performance of organizational activities and their effectiveness. Its main function is to ensure that the proposed organizational objectives are met. Employees are a key player in organizational performance, so giving them feedback on their performance is important for communication to be effective and for a sense of staff to increase, and consequently their productivity to increase.

8 0
3 years ago
On August 1, 2021, Turner Manufacturing lends cash and accepts a $16,000 note receivable that offers 10% interest and is due in
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Answer:

31 Dec 2021  Interest Expense              $667 Dr

                           Interest Payable                 $667 Cr

Explanation:

The bond will pay the interest at maturity. However, following the accrual basis of accounting requires to match the revenue and expenses for a period and requires such transactions to be recorded in their respective periods. The year end adjusting entry will be made on 31 December 2021.

The interest expense for the period from August to December, 5 months, will be recorded on 31 December 2021 as interest expense and credit to interest payable.

The interest expense is = 16000 * 0.1 * 5/12  =  $666.67 rounded off to $667

3 0
3 years ago
Machinery was purchased for $380000. Freight charges amounted to $16000 and there was a cost of $30000 for building a foundation
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Answer:

51501 \times 52512282 - 2.

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5 0
2 years ago
For each of the following cash activities, choose the appropriate letter to match the activity with the internal control princip
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Answer:

A. Restrict access

C. Establish responsibility

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Explanation:

A. Restrict access, as the password is set to address the cash register, that is a security is being provided, and this is because, there is a restricted access, for the safety purpose.

C. Establish responsibility - As the treasurer is held liable of making and receiving any checks, and that he is the person who shall monitor such things, related to transactions in checks.

D. Document procedures - since a list is prepared for the checks received in mail, it is mere preparation of records and documentation of what checks are received and what not.

B. Independently verify - Bank Reconciliation Statement is prepared to verify the transactions and match the balance in books with that of the bank pass book.

6 0
2 years ago
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