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4 years ago

Question help if you spend a large portion of your income on a good,

Business

1 answer:

eduard4 years ago

3 0

c. demand for that good is more elastic than if you spent a smaller portion of your income on the good.

Demand elasticity is the change in demand as the price changes - aka price has a big effect on demand.

Think about if the cost of a candy bar doubles from $1 to $2. This is a big increase but $2 isn't a huge portion of your income so it isn't a huge deal and you will probably keep buying. Now imagine if your car payment doubles from $350 to $700. Because this is such a big portion of your income, you will probably look to trade it in for a cheaper car.

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Boxer Inc. uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost

Rufina [12.5K]

Answer: Option (a) is correct.

Explanation:

Ending inventory at retail:

= Total retail - net sales - markdown

= (Beginning inventory + purchases + freight-in + markups) - net sales - markdown

= ($396,000 + $2,200,000 + 0 + $48,000) - $2,000,000 - $72,000

= $572,000

Total cost = Beginning inventory + purchases + freight-in + markups

= $260,000 + $1,370,000 + $86,000 + 0

= $1,716,000

Cost to retail ratio:

$=\frac{Total\ cost}{Total\ retail}$

$=\frac{1,716,000}{2,644,000}$

= 0.6490 or 64.9%

Ending inventory at cost:

= Ending inventory at retail × Cost to retail ratio

= $572,000 × 64.9%

= $371,228

8 0

3 years ago

Discounters like target and walmart use a(n) ________ strategy that suggests they offer the best quality for that price level

V125BC [204]

<span>Discounters like Target and Walmart use a price value strategy that suggests the offer the best quality for that particular price level. The price value strategy sets the primary price, but it is not an exclusive price, and is set according to the perceived value of products and services to the customers that shop there.</span>

5 0

3 years ago

Which of the following is not a common type of meeting?

geniusboy [140]

Answer:

running is the answer for your question

5 0

4 years ago

TaskMaster Enterprises employs a standard cost system in which direct materials inventory is carried at standard cost. TaskMaste

Elodia [21]

Answer:

The direct labor rate variance for November is $34,200

Explanation:

To find out the direct labor rate variance, we have to multiply the actual standard rate of direct labor into actual hours of direct labor used

Standard hourly rate of direct labor hour = $14.40

Actual direct labor hours = 5,000

Standard direct labor cost

= 5,000 × $14.40

= $72,000

Total factory wages are $42,000 in which direct labor is 90%

= $42,000 × 90%

= $37,800

Actual direct labor cost = $37,800

Therefore,

Direct labor rate variance = Standard direct labor cost - Actual direct labor cost

Direct labor rate variance

= $72,000 - $37,800

= $34,200

8 0

3 years ago

In the aggregate expenditures model if aggregate expenditures equal 800 billion and real GDP equals 600 there is a______________

Llana [10]

Answer:

unplanned inventory accumulation equals -$200 billion.

Explanation:

As we know that

Unplanned inventory equals to

= Real GDP - aggregate expenditures

= 600 billion - 800 billion

= -$200 billion

It shows a difference between the real GDP and the aggregate expenditure

Since the real GDP is less than the aggregate expenditure, so the unplanned inventory should come in negative amount else it comes in a positive amount

4 0

3 years ago

Question help if you spend a large portion of your income on a​ good,

Question help if you spend a large portion of your income on a good,