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2 years ago

Elastic demand exists when:

Business

1 answer:

arlik [135]2 years ago

6 0

Answer:

B. a small percentage decrease in price produces a larger percentage increase in quantity demanded and total revenue increases.

Explanation:

Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Elasticity of demand = percentage change in quantity demanded / percentage change in price

Demand is elastic if a small percentage decrease in price produces a larger percentage increase in quantity demanded . Total revenue would increase because the percentage increase in Quanitity demanded exceeds the percentage decrease in price.

If demand is elastic, a small percentage increase in price produces a larger percentage decrease in quantity demanded and total revenue increases.

Here, total revenue falls because percentage decrease in price exceeds the percentage increase in price.

Demand is inelastic if a small percentage decrease in price produces a smaller percentage increasein quantity demanded.

Demand is perfectly inelastic if the quantity demanded remains the same regardless of level of price.

I hope my answer helps you

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Better Publications sold annual subscriptions to their magazine for $42,000 in December, 2016. The magazine is published monthly

Amanda [17]

Explanation:

The adjusting entry is as follows

On January 31

Unearned revenue A/c Dr $3,500

To Magazine subscription revenue A/c $3,500

(Being the unearned revenue is recorded)

The computation is shown below:

= Sale value of annual subscriptions ÷ total number of months in a year

= $42,000 ÷ 12 months

= $3,500

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3 years ago

Sasha made a career decision that didn’t turn out as planned. What should she do?

alex41 [277]

Stay positive and try again....

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2 years ago

Read 2 more answers

Lusk Corporation produces and sells 10,000 units of Product X each month. The selling price of Product X is $40 per unit, and va

melisa1 [442]

Answer:

There is a financial disadvantage of ($30,000).

Explanation:

The discontinuity of product X would result in the contribution lost.

Sales that would be lost = $40 × 10,000 units = $400,000

Relevant variable cost with the production of product X that would be saved = $32 × 10,000 units = $320,000

Contribution lost = Sales lost - Variable cost saved

Contribution lost = $400,000 - $320,000

Contribution lost = $80,000

Saving in fixed costs = $120,000 - $70,000 (this would not be incurred) = $50,000

However, still contribution lost is more than the saving in fixed costs

Therefore, the financial disadvantage = $80,000 - $50,000 = ($30,000)

3 0

2 years ago

Sara Lee Corporation is a large conglomerate of businesses participating in a variety of industries. A few years ago, Sara Lee w

VLD [36.1K]

Answer:

Diverstiture or Selling assets from another division to pay for Bryan Food

Explanation:

Divestiture

This is the process of disposing a company's business unit or assets through bankruptcy, closure, exchange or sale for different purposes.

Reasons for DIvestiture

1. To sell off redundant business units - business units that are not being used or not generating income but are incurring expenses can be sold off to get some gains.

2. To generate funds - Selling a business unit for cash is a source of income. This is the choice or last resort of Sara Lee to acquire Bryan Foods

3. To ensure business survival or stability- Can be an option to declaring complete bankruptcy or closing off business completely

4. To increase resale value- Selling individual unit assets of a business is more profitable than selling the organisation assets en-mass or as a whole piece

Sara Lee Corporation and Bryan Foods

Sara Lee already has a variety of industries, apparently from these variety there are those ones that after much consideration could be redundant units or a not generating as much income or profit as expected.

Because Bryan Foods represents 'a tremedous' opportunity, with the potential to make Sara Lee more successful, the last resort is to pick assets or business units in Sara Lee that may be redundant or potentially generate less than Bryan Foods will and sell them in order to acquire Bryan Foods.

This is the last resort for Sara Lee.

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3 years ago

Brewer Inc. has 5,000 shares of 8%, $50 par value, cumulative preferred stock and 100,000 shares of $1 par value common stock ou

Tems11 [23]

Dividends received by the preferred stockholders in 2019 are $25,000.

<h3>What are shares?</h3>

Shares signify ownership in a corporation.
An individual becomes a shareholder in your business when they purchase shares.
Shareholders decide who manages a corporation and participate in important decisions like whether a company should be sold.

<h3>What are preferred stocks?</h3>

A component of share capital known as preferred stock is often regarded as a hybrid instrument since it might have any combination of characteristics that common stock does not, including characteristics of both an equity and a debt instrument.

<h3>Solution -</h3>

Annual dividend paid to stakeholder = 5000\times $50\times 8% = $20,000

Dividend declared and paid in 2013 = $15,000

Preferred dividend = $20,000 -$15,000

= $5,000

No dividend will be paid to common stockholders in 2014 until all 2013 dividends and 2014 annual dividends have been paid in full, therefore there will be $60,000 in dividends declared and paid in 2014. \

Preferred stockholders will receive $5000 for the 2013 dividend and $20,000 for the 2014 dividends.

The total dividends that preferred stockholders earned in 2014 were $5,000 + $20,000 = $25,000.

Therefore, dividends received by the preferred stockholders in 2019 are $25,000.

Know more about dividents here:

brainly.com/question/25845157

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1 year ago