Answer:
a. increase the price of the software
Explanation:
If I were the sales manager for a software company and have been informed that the price elasticity of demand for your most popular software is less than 1. In order to increase total revenues from that product, I will increase the price of the software.
The reason for such decision is based on the fact that when the price elasticity of demand of a product is lower than 1, an increase in the price of that product results in an increase in revenue for the seller.
Answer:
$0.70 per stock
Explanation:
before tax corporate income = $2.50 per stock
after tax corporate income = $2.50 x (1 - 30%) = $1.75 per stock
distributed dividends = $1.75 x 50% = $0.875 per stock
since the tax rate on dividends is 20%, then the after tax gain earned by stockholders is $0.875 x (1 - 20%) = $0.70 per stock
Some dividends are taxed as long term capital gains (like these), which decreases the tax rate paid by stockholders. If they were taxed at the normal income rate, the tax rate would have been 8% higher.
Answer:
cash collections from credit sales that the company will include in its cash budget for the second month is $55,500
Explanation:
Second Month Cash Collections will include the following Cash flows:
(1) 60% of the 2nd month`s sales
(2) 35 % of the 1st month`s sales
<u>Therefore cash collections from credit sales :</u>
(1) 60% of the 2nd month`s sales ( $68,000×60%) = $40,800
(2) 35 % of the 1st month`s sales ( $42,000× 35 %) = $14,700
Total cash collections = $55,500
Answer:
Option A. frictional unemployment, is the right answer.
Explanation:
Option A is correct because frictional unemployment is referred to as a situation when people change their job and remains unemployed during this period. For example, a person leaves his earlier job and starts finding a new job. It took him one month to find a new job, therefore, this period of one month during which he was unemployed and looking for a job is considered to be as the frictional unemployment.
