Answer: 0.5 making the demand for gas to be inelastic in this range.
Explanation:
The price elasticity of demand is calculated as:
= % change in quantity demanded / % change in price
= 15% / -30%
= -0.5
Based on the above calculation, we can see that the elasticity of demand equals to 0.5. Since, it is less than 1, it is said to be inelastic.
Answer:
A phone call
Explanation:
In this case where the supply chain specialist who has the information is not online, the best way to contact him is via telephone call.
It is so, because it's very easy to reach out to people via telephone call.
One advantage of the telephone calls is that, calls can be made at anytime 24 hours a day, 7 days a week
Lastly, fhe telephone call, which serves as a connection between a caller with via human voice, creates a connection that's not present in other media.
Answer:
A. $270,000 gain
B. $240,000 gain
Explanation:
A. Calculation to determine the tax consequences to Oriole Corporation on the distribution of the land
Tax consequences=$520,000 – $250,000
Tax consequences=$270,000 gain
Therefore Oriole will recognize a $270,000 gain on the distribution
B. Calculation to determine the tax consequences to Oriole on the distribution
Tax consequences=$490,000 – $250,000
Tax consequences= $240,000 gain
Therefore Oriole will recognize a gain of $240,000 on the distribution.
Answer:
Total relevant cost = $143,288
Explanation:
In a make-or buy decision , to determine the optimal course of action we compare the purchase cost of the component from the external market to the relevant variable cost of internal production. Where the relevant cost of in-house production is less than the external price, the company should produce internally and vice versa
Differential cost per unit = 16 - 12 = $4
Total relevant cost = $4× 35,822 = $143,288
Total relevant cost = $143,288
Note the fixed cost of $10 per unit is exclude because it is not relevant ; it would be incurred either way
Answer:
The amount of cash for the payment of dividends during the year is B. $40,000
Explanation:
To Determine the amount of cash for the payment of dividends during the year, we open a Dividends Payable T - Account and find the amount via <em>missing figure approach</em> as follows:
Debits :
Cash (<em>Balancing figure</em>) $40,000
Ending of year Dividends Payable $15,000
Totals $55,000
Credits :
Beginning of year Dividends Payable $10,000
Dividends declared during the year $45,000
Totals $55,000
