Answer:
The correct answer is A: $1,080,000
Explanation:
Giving the following information:
Reyes Company had a gross profit of $720,000, total purchases of $840,000, and an ending inventory of $480,000 in its first year of operations as a retailer.
Assuming there was any beginning inventory:
Sales= gross profit + (purchase - ending inventory)
Sales= 720,000 + (840,000 - 480,000)= $1,080,000
Answer:
$300
Explanation:
Data provided as per the question
Increase in volume = $400
Wage rate = $100
The computation of marginal revenue is shown below:-
Marginal revenue = Increase in volume - Wage rate
= $400 - $100
= $300
Therefore for computing the marginal revenue we simply deduct wage rate from increase in volume. So, the marginal revenue is $300.
Answer:
The answers are:
When the price increased from $2.00 to $2.50 the PES was 1.5
When the price increased from $2.50 to $3.00 the PES was 1.36
Explanation:
The formula used to calculate price elasticity of supply (PES) is:
PES = [(New Quantity Supplied – Old Quantity Supplied)/(Old Quantity Supplied)] / [(New Price – Old Price)/(Old Price)]
PES = % change in quantity / % change in price
When the price increased from $2.00 to $2.50 the PES was:
PES = [(110 - 80) / 80] / [(2.50 - 2.00) / 2.00] = 1.5
When the price increased from $2.50 to $3.00 the PES was:
PES = [(140 - 110) / 110] / [(3.00 - 2.50) / 2.50] = 1.36
