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Mkey [24]
3 years ago
13

For each of the following pairs, predict whether the cross-price elasticity of demand will be positive or negative:

Business
1 answer:
Dmitry_Shevchenko [17]3 years ago
3 0

Answer:

a) Positive.

b) Positive.

c) Negative.

Explanation:

a. Soap and hand sanitizer.- Positive cross elasticity of demand.

b. CDs and MP3s.- Positive cross elasticity of demand.

c. Sheets and pillowcases.- Negative cross elasticity of demand.

Cross price elasticity of demand are used as tool to measure the demand of one product by the change in price of related product like subtitute or complimentry goods and service. It is calculated by using ratio or percentage change in quantity demanded by percentage change in price of a related goods.

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Broker jill has an agreement with seller alice that says jill will receive compensation if anyone except alice sells alice’s hom
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This kind of agreement is called EXCLUSIVE AGENCY.
Exclusive agency is a contractual agreement under which the listing broker acts as an agent and the owner agree to pay a commission to him if the property is sold through the effort of any person with the exception of the owner of the property.
5 0
3 years ago
Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percentag
Iteru [2.4K]

Answer:

Computer Tycoon, Inc.

1. Horizontal Analysis, calculating the year-over-year changes in each line:

Computer Tycoon, Inc. Income Statements  For the Year Ended December 31    

                                                      2016         2015            Dollars      %

Sales Revenue                             $108,000  $132,000  -$24,000  -18.2%

Cost of Goods Sold                         64,000      74,700   -$10,700  -14.3%

Gross Profit                                      44,000     57,300   -$13,300  -23.2%

Selling, General, & Administrative

                         Expenses               36,800     38,600   -$1,800      -4.7%

Interest Expense                                  580           515     $65         +12.6%

Income before Income Tax Exp.      6,620       18,185  -$11,565     -63.6%

Income Tax Expense                         1,500       5,800   -$4,300     -74.1%

Net Income                                      $5,120    $12,385   -$7,265    -58.7%

2-A. Vertical analysis by expressing each line as a percentage of total revenues:

Computer Tycoon, Inc. Income Statements  For the Year Ended December 31    

                                                      2016            %             2015             %

Sales Revenue                             $108,000     100        $132,000    100

Cost of Goods Sold                         64,000      59             74,700     56.6

Gross Profit                                      44,000       41             57,300     43.4

Selling, General, & Administrative

                         Expenses               36,800       34           38,600       29.2

Interest Expense                                  580       0.5                515      0.4

Income before Income Tax Exp.      6,620        6              18,185      13.8

Income Tax Expense                         1,500       1.4             5,800       4.4

Net Income                                      $5,120       4.7         $12,385      9.4

2-B No. It made less profit per dollar of sales in 2016 compared to 2015.

Explanation:

a) Horizontal analysis is the analysis of financial statements to show changes in the amounts of corresponding financial statement items over a period of time.  It is used to evaluate the trend situations, using financial statements for two or more periods.

b) Vertical analysis is another technique for analyzing financial statements with each line item being listed as a percentage of a base figure within the statement.  For income statement, the base figure is usually the Sales Revenue, while for balance sheet, the base figure is the total assets.

8 0
3 years ago
Calgary Industries is preparing a budgeted income statement for 2015 and has accumulated the following information. Predicted sa
lesya [120]

Answer:

$192,500

Explanation:

budgeted net income statement

Net sales                   $750,000

<u>COGS                       ($300,000) </u>

Gross profit               $450,000

Selling expenses       ($83,000)

<u>Adm. expenses         ($92,000) </u>

EBIT                           $275,000

<u>Income taxes             ($82,500) </u>

Net income                $192,500

8 0
3 years ago
Ivers Co. holds $30,000 of available-for-sale securities. Ivers intends to hold these securities for three years. Ivers should r
bekas [8.4K]

Answer:

long term assets

Explanation:

hope this helps :)

4 0
3 years ago
Kay’s dog-walking service is a profit-maximizing, competitive firm. Kay walks dogs for $7.50 each. Her total cost each day is $4
devlian [24]

Answer:

Because he is able to cover the variable cots, he should keep going in the short run. He must increase the number of walks to cover the fixed costs.

Explanation:

Giving the following information:

Kay walks dogs for $7.50 each. Her total cost each day is $45—she spends $35 a day on gas driving to different neighborhoods, and her liability insurance and other fixed costs average out to $10 per day.

Kay walks five dogs a day.

Income= 7.5*5= $37.5

Total cost= 45

Loss= (7.5)

Because he is able to cover the variable cots, he should keep going in the short run. He must increase the number of walks to cover the fixed costs.

6 0
2 years ago
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