Answer:Please refer to Explanation
Explanation:
Cross Price Elasticity of Demand is a very useful tool in Economics to ascertain if goods are compliments or Substitutes.
Cross Price Elasticity of Demand (CPSD) measures the change in demand in one good due to a change in price is the other good.
If the CPSD is negative then the goods are Compliments meaning that they are used together which is why when the price of one good goes down, the demand of the compliment goes up because more of the original good will be bought due to the lower price.
If the CPSD is Positive, it means that they are Substitutes and a Decrease in price in one good leads to a decrease in demand for the other good because people will demand less of it and switch to the former (now cheaper) good.
The formula is,
= % change in Quantity Demanded of Product A /% change in Price of Product B
a. Splishy splashies and Flopsicles
CPSD = -18%/-1%
= 18%
The CPSD for both these products is 18% which is a positive figure. This means that they are Substitutes and <u>should not be marketed together. </u>
b. Splishy Splashies and Flopsicles
CPSD = 3%/-1%
= -3%
With the CPSD being a negative figure here, these goods are Compliments.
Splishy Splashies and Flopsicles <u>should be Marketed together</u> as they compliment each other.
Answer:
<u>$38.5 million</u>
Explanation:
Since the April Wood incoming transactions-accounts receivable increased by 4 million we obtain the cash value by substracting the question total accounts receivable value from the sales.
Where;
sales= $42.5 million
accounts receivable increase= $4 million
Amount of cash April Wood Products received from customers during the reporting period=
$42.5 million - $4 million= $38.5 million
Cost: ...
Financial strength and stability of operations: ...
Form of organization and legal status: ...
Purpose and time period: ...
Risk profile: ...
Control: ...
Effect on credit worthiness: ...
Flexibility and ease:
a example is a store like Lowes, or home depot
Answer:
45.9%
Explanation:
The computation of the debt payment to income ratio is as follows:
Income = $3,800
And,
Debt payment is
= auto loan payment + student loan payment +mortgage payment + credit card payment
= $350 + $150 + $1200 + $45
= $1745
So,
Debt payment to income ratio is
= Debt payment ÷ income
= $1,745 ÷ $3,800
= 0.459
= 45.9%
