I think for this item, it will be acceptable if we suggest that the branch manager's salary would be increased. It is through him/her and the dedication of the team members that the sales are very high. If the salary is not increased then, the manager and the team should be compensated for the job well done.
Answer:
the coefficient of elasticity is 1.25. therefore demand is elastic
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
5% / 4% = 1.25
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded
Answer:
Controlling is the process of assuring actual activities conform to planned activities with five examples are discussed below in details.
Explanation:
Planning and controlling are intimately associated. Controlling is further pervasive than planning. Controlling benefits managers observe the effectiveness of their planning, formation, and managing activities. It not only assists in maintaining a record on the development of activities but also guarantees that activities adhere to the measures set in approach so that organizational aims are achieved.
Answer:
A. A only
Explanation:
U.S. Generally Accepted Accounting Principles (GAAP) does not allow property, plant, and equipment to be written up or revalued. If the fair value of PP&E falls below the book value and the amount is material then a company must write down the asset to fair value.
Since under US GAAP, once PPE is written, it can not be reversed. as Company B is indicated to have reversed the write down while company A did not. It therefore means that Company A only is reporting under US GAAP.
Answer:
$30.07
Explanation:
Rocky river company uses target pricing
The production volume is 602,000 units
The market price is $34 per unit
The total assets is $13,900,000
The desired operating income is 17% of the total assets
= 17/100 × 13,900,000
= 0.17×13,900,000
= 2,363,000
The first step is to calculate the sales value
= 602,000 ×34
= 20,468,000
The total cost can be calculated as follows
= Sales value-desired operating income
= 20,468,000-2,363,000
= 18,105,000
Therefore the target full product cost per unit can be calculated as follows
= Total cost/production volume
= 18,105,000/602,000
= $30.07
Hence the full target product cost per unit is $30.07
