Answer:
0.22 and substitutes goods
Explanation:
The computation of the cross-price elasticity of demand using mid point formula is shown below:
= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of price)
where,
Change in quantity demanded is
= Q2 - Q1
= 180,603 - 194,108
= -13,505
And, the average of quantity demanded is
= (180,603 + 194,108) ÷ 2
= 187,356
Change in price is
= P2 - P1
= $2.43 - $3.36
= -$0.93
And, the average of price is
= ($2.43 + $3.36) ÷ 2
= 2.895
So, after solving this, the cross - price elasticity is 0.22
Since the cross - price elasticity is positive that reflect the goods are substitutes to each other
Answer:
Explanation:
There are primarily two types of costs, i.e. variable costs and the fixed costs. The variable cost is the cost which changes when the level of production changes, whereas the fixed cost is the cost which remains constant whether the level of output changes or not.
The variable costs also include indirect products, indirect labor and manufacturing equipment, and the fixed costs include taxes and depreciation costs.
The period cost is that cost which is related to the selling and admin expenses plus it is not capitalized.
Whereas the product cost is a mix of direct labor, direct material and the manufacturing overhead
So, the categorization is shown below:
1. Hamburger buns in a Wendy's outlet. = variable and product cost
2. Advertising by a dental office. = Fixed and period cost
3. Apples processed and canned by Del Monte. = variable and product cost
4. Shipping canned apples from a Del Monte plant to customers. = variable and period cost
5. Insurance on a Bausch & Lomb factory producing contact lenses. = fixed and product cost
6. Insurance on IBM's corporate headquarters.= fixed and period cost
The answer is B revenue is less than expenses