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4 years ago

Suppose that business travelers and vacationers have the following demand for airline tickets from New York to Boston:

Business

1 answer:

Furkat [3]4 years ago

4 0

Answer

Price elasticiy of demand for business travelers: -0.16

Price elasticity of demand for vacationers: -0.29

Explanation:

To find the price elasticy of demand (PED) using the midpoint method, we use the following formula:

$PED = \frac{(Q2-Q1)/[(Q2+Q1)/2]}{(P2-P1)/[(P2+P1/2]}$

Where Q2 and P2 are the new quantity demanded and new price respectively, and Q1 and P1 are the old quantity demanded and price.

Plugging the amounts into the formula we obtain the results of the answer.

Because both results are in absolute value less than one (0.16 and 0.29), we can say that the PED of tickets, for both vacationers and Business traveleres, is relatively inelastic. (Demand falls less in proportion to the change in price).

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The City of West Hutchison is constructing a new road, which it estimates will cost $7.2 million. The city will finance the road

Mice21 [21]

Answer:

Budgetary fund balance reserved for encumbrances (DR) $7,200,000

Encumbrances-Capital Project (CR) $7,200,000

Cash (DR) $1,200,000

Government Grant (CR) $1,200,000

Cash (DR) $6,000,000

Bonds Payable (CR) $6,000,000

Explanation:

1. The Budgetary entry for encumbrance is given as follows :

Budgetary fund balance reserved for encumbrances (DR) $7,200,000

Encumbrances-Capital Project (CR) $7,200,000

2. The government grant received will be recorded as :

Cash (DR) $1,200,000

Government Grant (CR) $1,200,000

3. The Issuance of Bonds needs to be recorded in the journal ledger as :

Cash (DR) $6,000,000

Bonds Payable (CR) $6,000,000

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3 years ago

If you want to say 30,000 to buy home in five years how much will you need to set aside per paycheck if you get paid monthly ass

Stolb23 [73]

Answer:

$500

Explanation:

Accrued interest is the accumulated interest earned on savings. In a savings plan, interest earned increases the balance of the account. At the end of a period, the balance will be the amount saved plus the accrued interest. If an account is not earning interest, only the amount saved will reflect on the account.

If $30,000 is the amount required, it will be divided by the number of months in saving duration. The saving duration is 5 years, every month, a total of 60 months

every month, you will set aside $30,000 divide by 60 months

=$30,000/60

=$500

7 0

3 years ago

The owner of a soccer team and local stadium has commissioned a study that showed the demand by fans for stadium seats (per play

AVprozaik [17]

The most probable answer here should be the teams playing. Each of the fans will have to support their favorite team, making the stadium be in more demanding situation if the fans' favorite teams are on play. The number of seats will most likely sell out during this period.

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3 years ago

Bergan Company estimates that total factory overhead costs will be $620,000 for the year. Direct labor hours are estimated to be

nadezda [96]

Answer and Explanation:

The computation is shown below:

a. The predetermined overhead rate is

= $620,000 ÷ 80,000 direct labor hours

= $7.75

b. The amount of overhead applied is

For jobs 200, it is

= 2500 × $7.75

= $19,375

For job 305

= 3,000 × $7.75

= $23,250

c. The journal entry is

Work in Process Dr $42,625.00 ($19,375 + $23,250)

To Factory Overhead $42,625.00

(being the factory overhead is recorded)

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3 years ago

Which of the following is true about a "credit"? I. It is part of the double-entry procedure that keeps the accounting equation

Ronch [10]

Answer:

All of the statements are correct

Explanation:

All of the statements are correct

As in an accounting entry there is an account which is debited and an account which is credited.

Although there might be numerous accounts which are debited or credited at the same time.

Thus, every credit in an entry balances the accounting equation, with respect to the assets and liabilities and stockholder's equity.

Further as assets show debit balance, whenever there balance decreases the assets are credited.

Liabilities show a credit balance, whenever it is increased it will be credited.

In a t shape account all debits are placed right side, and all the credits are shown on the right side.

8 0

4 years ago