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Sergeu [11.5K]
3 years ago
13

If Pete raises his price of muffins from $2 to $3 and his sales revenue increases from $35,000 to $38,000, then:a. this is impos

sible since this would violate the law of demand.b. the demand for Pete's muffins in this range is price inelastic.c. the demand for Pete's muffins in this range is unit elastic.d. the demand for Pete's muffins in this range is price elastic.e. the percentage change in quantity demanded must exceed the percentage change in product price.
Business
1 answer:
ElenaW [278]3 years ago
3 0

Answer:

The correct option is C

Explanation:

Provided rise in price increases the revenue from muffin.

That is by $35,000 to $38,000

Rates per muffin = $2 to $3 revised.

Demand at price of $2 = $35,000/$2 = 17,500 units

Demand at price of $3 = $38,000/$3 = 12,667 units approximately

Thus, with increase in price the demand gets to fall in number, though the revenue has increased.

Since the price is increasing by $1 per unit, thus the range is unit elastic.

The correct statement is C

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Carla Vista Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $500,0
riadik2000 [5.3K]

Answer and Explanation:

The Preparation of analysis showing whether the company should eliminate the gloves and mittens line is shown below:-

Particulars           Continue                  Eliminate                Net Income

                                                                                     Increase (Decrease)

Sales                   $500,000                     0                           ($500,000)

Variable

expenses           $360,000                      0                            $360,000

Contribution

margin               $140,000                       0                             ($140,000)

Fixed costs       $148,000                   $36,000                     $112,000

Net income      ($8,000)                     ($36,000)                   ($28,000)

The analysis showing that the Carla Vista Corporation should manufacture gloves and mittens else there loss will be increased by $28,000

4 0
2 years ago
If speech is merely for amusement, it is a(n) _____ form of speech.
Minchanka [31]

Answer:

the answer is comedic :)

6 0
3 years ago
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Bob returns goods bought on credit from Tariq, which ledger a/c entries record this in Tariq's book?
Elza [17]

Answer:

<u>D. Purchase returns Bob</u>

Explanation:

  • Purchase refers to payment by credit
  • So, it is either B or D
  • D sounds like the more sensible option
7 0
1 year ago
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On june 30, 20x1, after paying the semiannual interest due and recording amortization of bond discount, hake redeemed its 15-yea
Leokris [45]

Amount of interest expense on 30th June 20X1= Carrying Amount of Bond*Effective Interest Rate (For 6 Months)

=$940000*5/100

=$47000

Contractual Interest of the bond=Face Value*Contractual Interest

=1000000*4/100

=$40000

Thus, Carrying Amount of Bond=Carrying Amount|+Interest Expense-Interest Paid

Carrying Amount as on 30th June=940000+47000-40000

Carrying amount as on 30th June=$947000

Amount Paid to Redeem Bonds =$1020000

Gain/(Loss) on Redemtion of Bonds=Face Value-Amount Paid to Redeem Bonds

Loss on Bonds=-$73000

6 0
3 years ago
Accounts receivable written-off as uncollectible during the year amounted to $12,600. The accounts receivable balance at the beg
elena55 [62]

Answer:

$72,600

Explanation:

Ending balance of the account receivable can be calculated by adding credit sales in beginning balance and deducting any account receivable written-off.

As we have the ending balance of account receivable, we need to calculate credit sales by following formula:

Account receivable Ending Balance = Account receivable Beginning Balance + Credit Sales - Bad Debt - Ending Balance

$320,000 = $260,000 + Credit Sales - $12,600

$320,000 = $247,400 + Credit Sales

Credit Sales = $320,000 - $247,400 = $72,600

8 0
3 years ago
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