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patriot [66]
3 years ago
13

His income increased dramatically;from$5000 a year to $60,000 a year. Jim decides that instead of using the bus, he would buy a

car. This implies that_______.
Business
1 answer:
svet-max [94.6K]3 years ago
4 0

Answer:

This implies that bus is an inferior good and car is a normal good.

Explanation:

Initially, Jim's income was $5000 a year.

As his income increases to $60,000 a year, he decides to buy a car instead of using the bus.  

In other words, with the increase in income, the demand for traveling by bus is declining.  

This implies that it is an inferior good.  

The demand for the car is increasing with an increase in income.  

So, the car is a normal good.  

An inferior good can be defined as a product that shows negative elasticity. This means with an increase in income its demand declines an vice versa.

A normal good can be defined as a product that shows positive income elasticity. That is, its demand increases with rise in income and vice versa.

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What are operating expenses?
skad [1K]

Answer:

see below

Explanation:

Operating expenses are the cost a business incurs while engaging in its normal business operations. They are the costs not directly be attached to the production process. A business incurs operating expenses in managing it day to day activities. They exclude one time expenses such as judgment cost,  accounts adjustments, and other non-recurring costs.

Operating expenses are classified into administrative, selling, and general expenses. Businesses cannot avoid operating expenses; hence the management should strive to keep them as low as possible. Examples of operating expenses include rent, salaries,  employee benefits, transport,  depreciation, repairs, taxes, sales commissions, amortization, and pension contributions.

3 0
4 years ago
Land costing $79,700 was sold for $90,300 cash. The gain on the sale was reported on the income statement as other revenue. On t
Ray Of Light [21]

Answer:

$90,300

Explanation:

As we know that the investing activities of the cash flow statement deals with the purchase and sale of the assets. The purchase of the assets represent the cash outflow and the sale of the asset represent the cash inflow

So according to the given situation the investing activities should report the sale value of the land i.e. $90,300 in a positive amount as it is a cash inflow

8 0
3 years ago
Which feature would clickstream analysis typically capture?
Strike441 [17]

Answer:

d

Explanation:

8 0
3 years ago
Read 2 more answers
The production department is proposing the purchase of an automatic insertion machine. It has identified 3 machines and has aske
cricket20 [7]

Answer: the correct answer is a. Machine B

Explanation:

Machine A average rate return

40000 out of 300000. It means that 300000 is 100% and $ 40000 is X. We apply a simple three rule:

40000       X                     X= 4000000/300000

300000     100%               X= 13.33%

Machine B average rate return

50000 out of 250000. It means that 250000 is 100% and $ 50000 is X. We apply a simple three rule:

50000       X                     X= 5000000/250000

250000     100%               X= 20%

Machine C average rate return

$75,000 out of $500,000. It means that $500,000 is 1005 and $75,000 is X. We apply a simple three rule

$75,000     X                       X=7500000/500000

$500,000  100%                 X= 15%

The highest average is the one onf Machine B

4 0
4 years ago
You own an art supply store and the total sales in your trading area equal $17,500. your store accounts for $6,000 of the total.
ikadub [295]
In this case, the $6,000 refers to your sales. If expenses and returns were deducted it will be your net sales. Sales refers to the activity of selling an amount of goods or services to consumers who enter your storefront. The goal is to make sure your sales are greater than all of our expenses to make sure you are turning a profit each month.
3 0
3 years ago
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