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Kazeer [188]
3 years ago
11

When the price of hot dogs is $1.50 each, 500 hot dogs are sold every day. After the price falls to $1.35 each, 510 hot dogs are

sold every day. At the original price, what is the price elasticity of demand for hot dogs?
Business
1 answer:
Mkey [24]3 years ago
8 0

Answer:

The correct answer is -0.2.

Explanation:

According to the scenario, the given data are as follows:

When rate = $1.50

Hot dogs sold at $1.50 = 500 units

And When rate = $1.35

Hot dogs sold at $1.35 = 510 units

So, we can calculate the price elasticity by using following formula:

Price elasticity = (%change in quantity ) ÷ ( %change in price )

Where, %change in quantity = (( 510 - 500 ) × 100) ÷ 500

=  1,000 ÷ 500

= 2

and %change in price = ((1.35 - 1.50 ) × 100) ÷ 1.50

= (-10)

So, by putting the value:

Price elasticity = 2 ÷ (-10)

= -0.2

Hence, the price elasticity of demand for hot dogs is -0.2.

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3 years ago
On January 1, Year 2, Grande Company had a $16,000 balance in the Accounts Receivable account and a zero balance in the Allowanc
Sonja [21]

Answer:

Based on this information, the amount of cash flow from operating activities that would appear on the Year 2 statement of cash flows is:

= $97,000.

Explanation:

a) Data and Calculations:

Accounts Receivable balance on January 1, Year 2 = $16,000

Allowance for Doubtful Accounts balance on January 1, Year 2 = $0

Service Revenue on credit during Year 2 = $104,000

Cash collected from Accounts Receivable = $97,000

Accounts Receivable balance on December 31, Year 2 = $23,000

Allowance for Doubtful Accounts balance on December 31, Year 2 = $2,080 ($104,000 * 2%)

Net Accounts Receivable balance on December 31, Year 2 = $20,920 ($23,000 - $2,080)

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8 0
3 years ago
Farah Snack Co has earnings after taxes of $128, 750. Interest expense for the year was $20,000: preferred dividends paid were $
Leto [7]

Answer:

A. $0.90

Explanation:

Earning per share = (Net Income - dividends on preferred stocks)/average outstanding common shares

Particulars                                                               Amount

Earning After Tax                                                       128750

Taxes                                                                       15000

Earning before Tax & Interest Expense               143750

Interest Expense                                                      (20000)

Earning after Interest, but before Tax                       123750

Taxes                                                                       (15000)

Earning after Taxes                                               108750

Preferred Dividends                                               (18750)

Earning available for common stock holders       90000

common stock outstanding                                      100000

Earning per share                                                         0.9

Therefore, The outstanding Earnings per share on the common stock was $0.90

8 0
3 years ago
A corporation reports the following year-end balance sheet data. The company's acid-test ratio equals:
Margaret [11]

Answer: 1.27

Explanation:

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= (Cash + Accounts Receivable) / Current liabilities

= (40,000 + 55,000) / 75,000

= 95,000 / 75,000

= 1.27

8 0
3 years ago
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