Startup firms can struggle to gain lower prices from rivals, but FreshDirect seems to have found several ways to gain lower supp
1 answer:
You might be interested in
Answer:
A) Adjusting entries:
Dr Sales salaries expense 2,400
Cr Sales salaries payable 2,400
Dr Selling expenses 2,100
Cr Prepaid selling expenses 2,100
Dr Cost of goods sold 3,700
Dr Merchandise inventory 3,700
B) prepare the closing entries
Dr Sales revenue 550,900 (net = $557,000 - $19,900 - $6,200)
Cr Income summary 550,900
Dr Income summary 484,200
Cr Cost of goods sold 239,700 (net = $236,000 + $3,700)
Cr Sales salaries expense 62,400 (net = $60,000 + $2,400)
Cr Selling expense 44,100 (net = $42,000 + $2,100)
Cr Utilities expense 21,000
Cr Administrative expense 117,000
Dr Income summary 66,700 (= $550,900 - $484,200)
Cr Retained earnings 66,700
Dr Retained earnings 45,000
Cr Dividends 45,000
Answer: (b) -3.08
Explanation:
The relationship between the demand(q), price per unit product(p) and the disposable income,yd is given by the expression below;
q= 20ln(7yd-2p).
From the expression above, the marginal demand,
∂ q/∂ p is the differential of the equation of relationship between the demand, price and disposable income.
This involves considering the demand,q as the dependent variable and the price per unit product,p as the independent variable and the disposable income,yd is considered constant.
Therefore ,
∂ q/∂ p= (-40)÷(7yd-2p)
By substitution of
yd =$3000÷1000= $3
and p= $4
∂ q/∂ p= (-40)÷((7×$3)-(2×$4))
∂ q/∂ p= -40÷13= 3.08
Please see the attachment for knowledge on how ∂ q/∂ p was obtained.
