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Svetlanka [38]
3 years ago
15

When the price of a textbook falls by 4 ​percent, the quantity demanded of textbooks increases by 5 percent. What is the price e

lasticity of demand for textbooks​?
Business
1 answer:
just olya [345]3 years ago
5 0

Answer:

The price elasticity of demand for textbooks is 1.25

Explanation:

Price elasticity of demand is given by percentage change in quantity demanded divided by percentage change in price

Percentage change in quantity of textbooks demanded = 5%

Percentage change in the price of a textbook = 4%

Price elasticity of demand for textbooks = 5% ÷ 4% = 1.25

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Cardiac Science is a California-based company that makes defibrillators,heart monitors,and other medical equipment.It is prepari
Elden [556K]

The correct answer is A)  The name of the product, when translated into Greek, has an unintentional meaning.

Explanation:

In business, communication problems can emerge due to a difference in language that prevents the business from communicating appropriately its purpose, name, slogan, and from advertising its products. This mainly occurs if the translation does not reflect the original meaning or there are cultural features that create a barrier.

This situation occurs in "The name of the product when translated into Greek, has an unintentional meaning" because due to the lack of experience of the manager in Greece and the differences in language, she does not know how to communicate in Greek the name of the company, which creates a communicative barrier as Greek customers will not understanding the real meaning of the company.

5 0
3 years ago
150-seat restaurant $8,000,000 is needed to construct the restaurant; no additional investment is needed in working capital.
goldenfox [79]

Answer:

The answer is $7400000

Explanation:

Solution

Recall that:

There is  no information is given about per unit cost or sales price hence, a reverse calculation is to be made to find out the projected total revenue.

Now,

The reverse calculation to find sales is computed as follows:

Begin from the expected profit + Tax expenses + Interest Expenses + undistributed expenses + variable cost

Thus,

From the calculation of each term is as stated below:

1. The profit expected = 15% return on their investment. it is to be after tax return, total investment = $8000000,

So,

The Profit expected  = $8000000 *15% = $1200000.

2. The tax xxpenses = 25% that is, it should be 25% on taxable profit which is  decreased from it and then net profit after tax is available,

Thus,

we have net profit after tax we can compute the  taxable profit as = $1200000 / 75% = $1600000.  for example, tax amount on taxable profit = $160000 * 25% = $400000.

3. The Interest Expenses = 5% of borrowed fund from bank,

Now,

The  borrowed fund from bank = $2000000 (8000000-6000000)

The expenses interest = $ 100000 ($2000000*5%)

4. Undistributed Expenses is stated as follows:

The Undistributed expenses are given in the question = $2000000.

5. Variable cost that is the labor cost and cost of food :

From the question it is given that it is 50% of the sales, which means the remaining 50% is the contribution.

Now

The contribution on reverse calculation is  computed as:

Profit +taxes + Interest + fixed expenses

Contribution = 1200000 + 400000 + 100000 + 2000000 = $ 3700000,

Thus,

We say,let the sales be 10 , then variable cost be 50 and contribution is 50, that means variable cost = contribution in this case.

so, in proportional calculation , the variable cost = $3700000 .

Thus

The projected sales = expected profit + Tax expenses + Interest Expenses + undistributed expenses + variable cost

The total revenue projected =$1200000+ $ 400000 + $100000 + $ 2000000 +$ 3700000

Therefore, the total revenue projected = $ 7400000

3 0
3 years ago
Nikita is the manager of a local small hotel. Just today Nikita received word that a major convention will be coming to town nex
Ne4ueva [31]

Answer:

Contingency viewpoint or approach of management

Explanation:

According to the contingency viewpoint, there is no particular standard of management. Rather, the type of management style adopted including decisions made depends on the type of situation that the organization is facing at the particular time. Nikita in this scenario is using the contingency approach since she is making decisions based on the upcoming convention.

3 0
3 years ago
Elroy Rocket is entering his senior year as an accounting major and has a number of options for his summer break. His options fo
Solnce55 [7]

Answer:

$8,300

Explanation:

Calculation for what Elroy's incremental profit or loss would be if he chooses option 2 over option 1

Using this formula

Incremental Profit of option 2 over option 1= Profit from option 1 - Profit from option 2

Let plug in the formula

Incremental Profit of option 2 over option 1= ($3,600*3)-(3*$1,100 - $800)

Incremental Profit of option 2 over option 1= $10,800 - $2,500

Incremental Profit of option 2 over option 1= $8,300

Therefore Elroy's incremental profit or loss would be if he chooses option 2 over option 1 would be $8,300

4 0
3 years ago
g which is debt-free and finances only with equity from retained earnings. You were given the following information: rRF = 3.50%
Pachacha [2.7K]

Answer: 7.46%

Explanation:

The CAPITAL ASSET PRICING MODEL is a very useful tool for calculating a firm's Cost of Equity.

The Formula is,

Rc = Rrf + b(Rpm)

Where,

Rc is the Cost of Equity

Rpf is the Risk risk free rate

b is beta

Rpm is the risk premium

Plugging in the digits we have,

Rc = 0.0350 + 0.88(0.045)

= 0.0746

The firm's cost of equity from retained earnings based on the CAPM is therefore 7.46%

3 0
2 years ago
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