The term income effect used in economics describes a situation where a higher price causes a reduction in the buying power of income, even though actual income has not changed.
<span>It denotes the change in demand of a good or service as a result of a change in a consumer's discretionary </span>income<span>. </span>
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Answer:
In the following situation:
Jacob rents rooms in his hotel for an average of $100 per night. The variable cost per rented room is $20, to cover maid service and utilities. His fixed costs are $100,000 and his profit last year was $20,000.
The Jacob's contribution per unit is:
e) 80
Explanation:
To understand this answer we need to explain a few things. First of all, te contribution unit concept is used to express, identify, or define the net profit after one unit has been sold and all the expenses have been subtracted from it. The formula to obtain it is: (Total revenues- Total Variable costs) divided by total units. Following this information we have.
Total revenue is: 100 USD per night
Total variable costs are: 20 USD per night
Total units are only one.
Therefore 80 USD is our contribution per unit.
Answer:
4)Low job satisfaction
Explanation:
From the question, we are informed that Carol really doesn't like her new boss and is not happy with the new tasks she's been assigned and the long hours she's been working. But she still truly believes in what the company is trying to accomplish.
In this case , Carol has Low job satisfaction.
Whenever an employee job
has satisfaction, he/she will be motivated, it always result to efficiency in the part of employees, they ten to work harder for acheiving the goal of the organization which in turn result to good overall performance of the organization. But in the situation whereby an employee has
Low job satisfaction, the reverse is the case, he/she will not be happy with task given to him/her, no motivation.
Factors that improve Low job satisfaction are;
✓Assuring job security for employee
✓Job benefits
✓Good relationship between employee and employer.
<u>Answer:</u> The capitalization rate is 12.5 %
<u>Explanation:</u>
To calculate the capitalization rate, we use the formula:
We are given:
Net operating income = $ 43,750
Value of property = $ 350,000
Putting values in above equation, we get:
Hence, the capitalization rate is 12.5 %
