Answer:
Explanation:
Pizza quantity Change = 60-50 = 10
Income change = $12000 - $10000 = $2000
Mid point of Quantity of Pizza = (50+60)/2 = 55
Mid point of income = ($12000 + $10000)/2 = $11000
Income elasticity = 10*11,000/2000*55 = 110,000/110,000=1
Pizza is a unit elastic normal good, because percentage change in income = % change in pizza quantity
Answer:
The average collection period of the company is 18 days
Explanation:
The formula for computing the average collection period of the company is as follows:
Average Collection period = 365 / Accounts receivable turnover ratio
where
Accounts receivable turnover ratio is computed as:
Accounts receivable turnover ratio = Net credit sales / Average accounts receivable
Putting the values above:
Accounts receivable turnover ratio = $400,000 / $20,000
Accounts receivable turnover ratio = 20
Now putting the values of the Accounts receivable turnover ratio in the formula of average collection period:
Average collection period = 365 / 20
= 18.25 or 18 days
Answer:
the information is incomplete but we can assign some numbers just to serve as an example:
suppose that the stock's price is $60, and the earnings per share (EPS) is $1.50, the price earnings ratio will be:
price earnings ratio = stock price / earnings per stock = $60 / $1.50 = 40
Answer:
D. All of the above are correct.
Explanation:
Carry Cost : This is the total cost incurred by an entity for taking ownership and storing inventory items, some of these costs are rent of warehouse, inventory insurance, salary of warehouse staff e.t.c.
Stock-out Costs : The is the lost of income and all the expenses associated with the inability to meet customers' orders due to shortage in inventory.
Quality Costs : This is cost incurred by a firm for ensuring that product conforms to established quality standard as well as cost incurred in investigating and correcting substandard products produced.
Shrinkage Costs :
This is the monetary value of the inventory items lost as a result of sharp practices or poor storage environment.
Purchasing Costs : This is the actual cost incurred in buying inventory and bringing it to its present location less any sales discount.
Ordering Costs : This is the entire cost incurred in processing and placing order for inventory.
We can see that all of the above are important in managing goods for sale in a retail company.
If a computer virus spreads rapidly through a company's computer system and threatens to shut down all internal and external lines of communication, the company will likely put a contingency <span>plan into effect.
</span>A contingency <span>plan is part of the risk management that deals with risks that</span> have catastrophic consequences. In this case the computer virus is a risk with catastrophic consequences: shut down communication.
