Answer:
The coefficient of cross elasticity of demand is negative, and therefore these goods are complements.
Explanation:
Cross elasticity of demand is the proportionate change in the quantity demanded to the proportionate change in the price of the related goods.
Cross elasticity of demand is negative in case of complementry goods as proportionate increase in price of one goods lead to decrease in the demand of related goods as both are complimentry and demanded jointly. Example: Petrol and car.
Cross elasticity of demand is positive in case of subtitute goods as proportionate decrease in price of one goods lead to decrease in the demand of substitute goods. Example: Tea and Coffee.
Answer:
The resulting rise in unemployment is mostly a rise in __cyclical____ unemployment because it is related to the state of the economy.
Explanation:
Frictional unemployment occurs as a result of workers' search for or transition to new jobs. It is brief and does not leave a mark on the economy. Structural unemployment comes about when the skills of workers do not match the requirements of employers. Therefore, workers require retraining and reskilling. Cyclical unemployment relates to the macro-economic situation that is prevailing during periods of recession.
Answer:
55,000 Credit balance
Explanation:
Mango Company
Predetermined overhead rate /Estimated overhead cost
= $600,000 / $300,000
Estimated direct labor cost = 200%
Applied overhead :
=Actual direct labor cost of $335,000 × 200%
= $670,000
Overhead incurred-Overhead applied
$615000 – $670,000
=$55,000
Therefore At year-end, the balance in the Factory Overhead account is a: credit of $55,000
Answer:It will not be ethical for Aaron to attend the meeting and share relevant cost data
Explanation:
Sharing of the relevant cost data will enable the competitor to have a good idea of what goes into Aaron production and it's pricing policy which may be use to the advantages of the competitor.
Furthermore there is no law that protect a firm from his competitor abuse of information obtain through mutual consent.
Answer: $3,719,548.95
Explanation:
As the amount will be an equal amount each year, it is an annuity. The lump sum to be paid in 6 years growing at 5% would be the present value of this annuity.
The payment will be;
FV = Payment * Future value interest factor of annuity, 6 years, 5%
25,300,000 = Payment * 6.8019
Payment = 25,300,000/6.8019
Payment = $3,719,548.95
