Answer:
C. Fall, 30%, Rise
Explanation:
- Price Elasticity of Demand is responsive change in demand, due to change in price.
P.Ed = % change in demand / % change in price.
Given : Price rise by 50% , P.Ed = 0.6
So, % change in demand = P.ed x % change in price
% change in demand = 0.6 (50)
% change in demand = 30%
Law of demand states negative relationship between price & demand, so P.ed is negative. Price rise 50% reduces demand by 30%.
- P.Ed can be : Elastic ( > 1 ), or Inelastic ( < 1 ). If P.Ed is Elastic, price & total revenue are inversely related. If P.Ed is Inelastic, price & total revenue are directly related.
So, Given PEd = 0.6 (i.e < 1 ) : Inelastic Demand implies price & total revenue are directly related related to each other. So, price fall lead to TR fall & price rise lead to TR rise.
Answer: c. small changes in economic growth rate lead to large GDP changes over time.
Explanation:
If there is even a small change in the rate at which the economy is growing, this increase will increase by even more the year afterward and then even more as time goes on. This is because the interest is being compounded overtime.
Look at the future value formula that shows compounding for instance:
Future value = Amount * (1 + rate) ^ number of periods
Assume even a change of 2% in the growth rate. In 30 years, this rate would have increased the economy by:
= 1 * ( 1 + 2%)³⁰
= 1.81
Which is a rate of:
= 1.81 - 1
= 81%
What started off as only 2% became 81% in 30 years. This is what compounding does.
<h2>A control total for hours worked, prepared from time cards collected by the timekeeping department.</h2>
Explanation:
An employee should get salary only based on the number days / number hours worked for the organization. So the time card will help the organization to solve the problem.
So the time card should be collected and then only the salary needs to be calculated. The salary calculation should take number of leaves (paid / unpaid), permissions and On-duty in to account so that the expected outcome can be achieved.
Answer:
(b) $ 43,750 increase
Explanation:
The computation of the effect on operating income is shown below:
= Contribution margin per unit × special order
where,
Contribution margin per unit = Selling price per unit - Variable expense per unit
= $7.50 - $5.75
= $1.75
And, the special order is of 25,000 pairs
Now put these values to the above formula
So, the value would equal to
= $1.75 × 25,000 pairs
= $43,750
The fixed cost would remain unchanged.
Answer:
the allocation rate is $3 per machine hour
Explanation:
<em>Step 1 Find the to total Machine hours</em>
Total Machine Hours
3.0×15,000 = 45,000
5.0×20,000 = 100,000
Total = 145,000
<em>Step 2 Determine the Overhead allocation rate</em>
Overhead allocation rate = Budgeted Overheads / Total Machine Hours
= $435,000/145,000
=$3 per machine hour
