Answer:
2.2
Explanation:
The formula for calculating price elasticity using the midpoint method is:
midpoint method = {(Q2 - Q1) / [(Q2 + Q1) / 2]} / {(P2 - P1) / [(P2 + P1) / 2]}
midpoint method = {(150 - 100) / [(150 + 100) / 2]} / {(1.20 - 1) / [(1.20 + 1) / 2]}
midpoint method = [50 / (250 / 2)] / [0.20 / (2.20 / 2)] = (50 / 125) / (0.20 / 1.1)
midpoint method = 0.4 / 0.19 = 2.2
The advantage of using the midpoint method to calculate price elasticity is that we can calculate the price elasticity between two points, and it doesn't matter if the price increases or decreases.
If we calculate price elasticity using the single point formula:
price elasticity = % change in quantity supplied / % change in price = 50% / 20% = 2.5
Answer:
1. $3,380
2. $2,175
Explanation:
Part 1
Predetermined overhead rate = Total Overheads for the Company ÷ Total Direct labor-hours for the Company
= $ 15,080,000 ÷ 232,000
= $65
Overheads applied to Job Bravo = ( 30 x $65) + (22 x $65) = $3,380
Part 2
<em>Assembly department</em>
Predetermined overhead rate = $ 7,250,000 ÷ 145,000
= $50
<em>Assembly department</em>
Predetermined overhead rate = $ 7,830,000 ÷ 290,000
= $27
Overheads applied to Job Bravo = (30 x $50) + (25 x $27) = $2,175
Answer:
Make arrangements or preparations for (an event or activity)
Answer: <u><em>The company prefers to have white Americans at top positions</em></u>, is most likely the reason why Rohit was not promoted.
In this particular case, Rohit a marketing executive who has graduated from a top Ivy League university in the United States and has been known for his outstanding performance, positive attitude, and innovative ideas yet somehow Ryan, a white male with lesser experience and average performance, is promoted to the position of marketing manager.
This states that there is discrimination in this organization and they tend to hire white people over people of color.
<em><u>Therefore, the correct option is (b). </u></em>
Answer:
The value of the option to wait is $0.70,option A.
Explanation:
In calculating the value of the option to wait,I discounted all cash flows under both alternatives, using the discount rate of 12% as given in the question.
Option to start now gives net present value(positive return ) of $360.64 while the other one gives $361.34,invariably option to wait one year gives $0.70($361.34-$360.64) more than the option to start now.
The formula used in the calculating present value is PV=FV(1+r)^n
Where PV=present value
FV=future value
r=rate of interest
n=number of year
Find attached spreadsheet for detailed calculations.
