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3 years ago

The reason that the producers of wood pulp have often forward integrated into the production of paper is:

1 answer:

6 0

<span>Producers of wood pulp often forward integrate into the production of paper in order to exploit technical economies. By also owning paper making plants they can avoid costs of removing waste, and better use it in order to make even more profits.</span>

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If the price elasticity of demand for a product equals 1, as its price rises the:______

Allisa [31]

Answer:

c. total revenue does not change.

Explanation:

A price elasticity of demand can be defined as a measure of the responsiveness of the quantity of a product demanded with respect to a change in price of the product, all things being equal.

Mathematically, the price elasticity of demand is given by the formula;

$Price \; elasticity of demand = \frac {Percentage \; change \; in \; quantity \; demanded}{Percentage \; change \; in \; price}$

The demand for goods is said to be elastic, when the quantity of goods demanded by consumers with respect to change in price is very large. Thus, the more easily a consumer can switch to a substitute product in relation to change in price, the greater the elasticity of demand.

Generally, consumers would like to be buy a product as its price falls or become inexpensive.

For substitute products (goods), the price elasticity of demand is always positive because the demand of a product increases when the price of its close substitute (alternative) increases.

If the price elasticity of demand for a product equals 1, as its price rises the total revenue does not change because the demand is unit elastic.

5 0

2 years ago

Resource Room prints custom training material for corporations. The business was started January 1, 2017. The company uses a nor

nadya68 [22]

Answer:

Budgeted Overhead Cost 266,000

Budgeted Labor Cost 190,000

Recovery rate =266000/190000

Recovery rate per labor cost 1.40

Actual Material 158,000

Actual labor 175,000

WIP closing Material Labor

Job 11 4,720 5,700

Job 12 5,090 6,900

Total 9,810 12,600

Transfer to Finished= Total-WIP

Actual Material 148,190

Actual labor 162,400

Category Finished WIP Total

Material 148,190 9,810 158,000

Labor 162,400 12,600 175,000

Overhead-Recovered 227,360 17,640 245,000

@ 140% of labor

Balance before 537,950 40,050 578,000

adjustment to overhead

under-allocation

Option 1-Underallocated 2,200 2,200

overhead (247200-245000)

Balance after adjusting 540,150 40,050 580,200

overhead under-allocation

Option 2-Underallocated 2,042 158 2,200

overhead in overhead allocated rate

2200*227360/245000

2200*17640/245000

Balance before adjustment 537,950 40,050 578,000

to overhead under-allocation

Balance after adjusting 539,992 40,208 580,200

overhead under-allocation

g. the option 2 will be chosen because a careful look at the underallocated overhead is similar to 2017 so the charge should be levied on all activity

Explanation:

Budgeted Overhead Cost 266,000

Budgeted Labor Cost 190,000

Recovery rate =266000/190000

Recovery rate per labor cost 1.40

Actual Material 158,000

Actual labor 175,000

WIP closing Material Labor

Job 11 4,720 5,700

Job 12 5,090 6,900

Total 9,810 12,600

Transfer to Finished= Total-WIP

Actual Material 148,190

Actual labor 162,400

Category Finished WIP Total

Material 148,190 9,810 158,000

Labor 162,400 12,600 175,000

Overhead-Recovered 227,360 17,640 245,000

@ 140% of labor

Balance before 537,950 40,050 578,000

adjustment to overhead

under-allocation

Option 1-Underallocated 2,200 2,200

overhead (247200-245000)

Balance after adjusting 540,150 40,050 580,200

overhead under-allocation

Option 2-Underallocated 2,042 158 2,200

overhead in overhead allocated rate

2200*227360/245000

2200*17640/245000

Balance before adjustment 537,950 40,050 578,000

to overhead under-allocation

Balance after adjusting 539,992 40,208 580,200

overhead under-allocation

g. the option 2 will be chosen because a careful look at the underallocated overhead is similar to 2017 so the charge should be levied on all activity

3 0

3 years ago

The following information relates to Kew Company's Vale Division for last year: sales .................................. $500,00

-Dominant- [34]

Answer:

$114,000

Explanation:

The computation of the residual income is shown below:

As we know that

Residual Income = Net operating Income - Average Operating assets × Required rate of return

where,

Net Operating Income is

= Sales Revenue - Variable Costs - Fixed Costs

= $500,000 - $300,000 - $50,000

= $150,000

And,

Average operating Assets is

= Net Operating Income ÷ Return on Investment

= $150,000 ÷ 0.25

= $600,000

So, the residual income is

= $150,000 - $600,000 × 6%

= $150,000 - $36,000

= $114,000

3 0

3 years ago

A company has employed two workers A and B whose productivities are 20units and 15units respectively. The wage for A is k12 whil

Leni [432]

Answer:

Explanation:

In order to achieve optimal employment level, the ratio of productivity between employees must be equal to the ratio between their wages, e.g. an employee who is 25% more productive, should earn 25% more.

In this case, the productive ratio is 15:20 or 3:4, while the wage ratio is 8:12 or 2:3. Since the wage ratio is lower than the productivity ratio (2:3 < 3:4), the two employees are not optimally employed.

3 0

3 years ago

How do you create a business

anyanavicka [17]

Answer:

with the state

Explanation:

5 0

3 years ago

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