I believe the answer is b
Answer:
a. Calculate the price elasticity of supply for Aji's Chocolate Factory in February
b. Calculate the price elasticity of supply for Aji's Chocolate Factory in March
c. If Aji's Factory is nearly at full capacity of production in March, what will happen to Aji's Factory price elasticity of supply in April?
- If the company is producing at full capacity, then its price elasticity of supply will be perfectly inelastic even if the price increases. This is because any increase in price will not affect the quantity supplied because the company cannot increase it even if they wanted to.
Explanation:
price elasticity of supply = % change in quantity supplied / % change in price
It measures the proportional change in the quantity supplied that producers will make given a 1% change in the price of their product.
PES February = [(110 - 80)/80] / [(2.5 - 2)/2] = 0.375 / 0.25 = 1.5
PES March = [(140 - 110)/110] / [(3 - 2.5)/2.5] = 0.273 / 0.2 = 1.36
The International Organization for Standardization (ISO) is an international standard-setting body composed of representatives from various national standards organizations.
Founded on 23 February 1947, the organization promotes worldwide proprietary, industrial and commercial standards. It is headquartered in Geneva, Switzerland, and as of 2015 works in 163 countries.
It was one of the first organizations granted general consultative status with the United Nations Economic and Social Council.
Answer:
$2,443.95
Explanation:
Given:
Purchased inventory = $4,900
Freight bill paid = $310
Manufacturing returned = 35%
Purchase discount = 33%
Now,
The value of Purchase returns = 35% of $4,900
= 0.35 × $4,900
= $1,715
Therefore,
The Net purchases = Purchased inventory - Purchase returned
or
= $4,900 - $1,715
= $3,185
Also,
Discount = 33% of $3,185
= $1,051.05
Therefore, the final cost of inventory = Net purchases - Discounts + Freight
= $3185 - $1051.05 + $310
= $2,443.95
