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Reika [66]
3 years ago
8

When Heavenly Cookies prices its sugar cookies at $1.00, they sell 75 cookies. They lowered the price to $0.50 and sold 200 cook

ies. Their total revenue ________ because the price elasticity of demand for sugar cookies is ________.
Business
1 answer:
Serga [27]3 years ago
4 0

Answer: Total Revenue is $100 and the price elasticity is 0.4

Explanation: total revenue is computed as Price * Quantity

$0.5 * 200= $100

Elasticity is the degree of responsiveness of quantity demanded to a change in price.

Old price $1

New price $0.5

Old quantity 75

New quantity 200

Formula- % change in quantity demanded / % change in pride

NB change is (old-new)

Change in Qd= (75-200) / 75 =-1.67

Change in price=(1-0.5)/1=0.5

-1.67/0.5= -3.34

The negative is ignored in price elasticity and the answer is 3.34 which means the product is Elastic

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MaryAnne is always late to meetings and she knows she needs to be better about being on time because it is expected by almost ev
nevsk [136]

Answer:

The correct answer is (a)

Explanation:

In the United States, professionalism is the key and time is considered as an important factor. Maryanne is always late which means she needs to improve this habit because in the United States the attitude towards time is Folkway. Folkways are the traditions or norms that are followed by everyone in daily lives they are known as social norms.

4 0
3 years ago
Matt purchases 4 boxes of spinach and 3 pounds of tomatoes per month when the price of spinach is $1.50 per box. He purchases 5
harina [27]

Answer:

-1.25

Explanation:

Given that

Q1 of tomatoes = 3

Q2 of tomatoes = 5

P1 = 1.50

P2 = 1

Using midpoint formula

Recall that

Midpoint = [(Q2 - Q1)/(Q2 + Q1/2)] ÷ [(P2 - P1)/(P2 + P1/2)]

Thus

(5 - 3)/(5+3/2) ÷ (1 - 1.5)/(1 + 1.5/2)

= 2/4 ÷ -0.5/1.25

= 0.5 ÷ -0.4

= - 1.25

The cross price elasticity of demand is -1.25 and they are thus compliments.

6 0
3 years ago
Read 2 more answers
Warner Company has $196,000 of total fixed costs and sells products A and B with a product mix of 40% A and 60% B. Selling price
levacccp [35]

The break-even point of Warner Company is 3,500 units.

Here, we are going to calculate the break-even point of Warner Company.

Product Product Mix   Contribution margin     Weighted Average unit

                     [1]                      per unit[2}                contribution margin[1*2]

A                40%                          $8                                     $3.2

B                60%                          $4                                     <u>$2.4</u>

Total                                                                                     <u>$5,6</u>

  • Formula for Break Even point is <em>Fixed cost / Weighted average unit contribution margin</em>

Break-even point = $196,000 / $5,6

Break-even point = 3,500 units

Therefore, the break-even point of Warner Company is 3,500 units.

See similar solution here

<em>brainly.com/question/15308013</em>

3 0
3 years ago
Privack Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours
Alchen [17]

Answer:

1. $8.25

2. $313,500

Explanation:

Given that,

Variable overhead cost per direct labor-hour = $2.00

Total fixed overhead cost per year = $250,000

Budgeted standard direct labor-hours (denominator level of activity) = 40,000

Actual direct labor-hours = 39,000

Standard direct labor-hours allowed for the actual output = 38,000

1. Total overhead cost at denominator level of activity:

= Total fixed overhead + Total variable overhead

= $250,000  + (40,000  × $2.00 )

= $250,000  + $80,000

= $330,000

Predetermined overhead rate:

= Total overhead cost at denominator level of activity ÷ Budgeted standard direct labor-hours

= $330,000 ÷ 40,000

= $8.25

2. Overhead applied:

= Standard direct labor-hours allowed for the actual output × Predetermined overhead rate

= 38,000 × $8.25

= $313,500

3 0
3 years ago
Bonita Industries purchased a depreciable asset for $174500. The estimated salvage value is $14300, and the estimated useful lif
jok3333 [9.3K]

Answer:

Annual depreciation= $16,020

Explanation:

Giving the following information:

Purchase price= $174,500

Salvage value= $14,300

Useful life= 10 years

T<u>o calculate the depreciable base, we need to use the following formula:</u>

<u></u>

Depreciable base= purchase price - salvage value

Depreciable base= 174,500 - 14,300

Depreciable base= $160,200

N<u>ow, we can determine the annual depreciation:</u>

Annual depreciation= depreciable base /estimated life (years)

Annual depreciation= 160,200 / 10

Annual depreciation= $16,020

6 0
3 years ago
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