Answer:
$208,000
Explanation:
The computation of the absorption-costing income is shown below:
As we know that
Net income = Gross profit - variable expense - fixed expense
where,
Gross profit is
= Sales - cost of goods sold
= (22000 units at $30) - (22,000 units at $14)
= $660,000 - $308,000
= $352,000
The $14 come from
= 8 + 150,000 ÷ 25,000
= 8 + 6
= 14
Now the variable expense is
= 22000 at $2
= $44,000
And, the fixed expense is $100,000
So, the net income is
= $352,000 - $44,000 - $100,000
= $208,000
Answer:
Elastic demand
Explanation:
The price elasticity of demand is described as the sensitivity of demand to changes in its price. A product is price elastic when a small change in prices causes a significant change in quantity demanded. If a small change in price results in minimal impact in quantity demanded, the product is price inelastic.
Steel mill raised its prices by 7 percent. As a result, the demand declined by 20 percent. The demand decreased by a bigger rate than the change in price. It means a small change in price causes the demand to change significantly. Therefore, the demand curve is price elastic.
Answer:
$1,952 (Positive NPV)
Explanation:
Year Annual CF ($) PV factor at 10.30% PV of Cash Flow ($)
1 17,000 0.90662 15,413
2 17,000 0.82196 13,973
3 17,000 0.74520 12,668
4 17,000 0.67561 11,485
5 17,000 0.61252 10,413
6 17,000 0.55532 9,441
7 17,000 0.50347 8,559
TOTAL 1.73554 81,952
Net Present Value (NPV) = Present value of annual cash flows - Initial Cost
Net Present Value (NPV) = $81,952 - $80,000
Net Present Value (NPV) = $1,952 (Positive NPV)
Answer:
c) 10%; stays the same.
Explanation:
Elasticity of supply measures the degree of responsiveness of quantity supplied to changes in price.
Supply is perfectly inelastic if a change in price has no effect on quantity supplied. The quantity supplied remains unchanged despite changes in price.
I hope my answer helps you
Answer:
I used an excel spreadsheet to answer this question.
