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FinnZ [79.3K]
3 years ago
13

When demand is unit elastic, price elasticity of demand equals a. 1, and total revenue and price move in the same direction. b.

1, and total revenue and price move in opposite directions. c. 1, and total revenue does not change when price changes. d. 0, and total revenue does not change when price changes.
Business
1 answer:
yawa3891 [41]3 years ago
4 0

Answer:

a. 1, and total revenue and price move in the same direction

Explanation:

Unit elasticity of demand is when a change in price leads to a proportional change in quantity demanded.

A good has a unit elastic demand when its coefficient of elasticity is equal to one.

If price increases by 20% , quantity demanded falls by 20%.

If price falls by 20%, quantity demanded increases by 20%.

I hope my answer helps you.

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Answer and Explanation:

The preparation of the contribution margin income statement for the company is presented below:

                                 Tight Drums Company

                    Contribution margin income statement

                    For the year ended December 31, 2017

Sales (5,000 drums × $350)      $1,750,000

Less: Variable cost

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Wages of assembly workers $510,000

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Variable selling costs

Sales commissions $175,000

Total variable cost                                         -$1,100,000

Contribution margin                                        $650,000

Less: Fixed cost

Fixed manufacturing costs

Taxes on factory $5,000

Factory maintenance $10,000

Factory machinery depreciation $70,000

Fixed selling and administrative costs

Lease of equipment for sales staff $10,000

Accounting staff salaries $60,000

Administrative management salaries $140,000

Total fixed cost                                                          -$295,000

Net operating income                                                 $355,000

Less: income tax expense at 25%                             -$88,750

Net income                                                                   $266,250

We simply deduct the variable cost and fixed cost from the sales revenue so that the net operating income could come and then deducted the income tax expense so that net income could arrive

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Answer:

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Explanation:

In high context cultures are complete contrast to low context. In low context cultures, communication takes place clearly through language and rules of communication are clearly stated. While on the other hand in high context cultures, communication is subtle through body language, tone of voice, person's status etc. The use of contextual elements is more.

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3 years ago
You can buy a car that is advertised for $24,600 on the following terms: (a) pay $24,600 and receive a $4,600 rebate from the ma
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Answer:

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C.Option (b)

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REQUIREMENT C.

Which is the better deal?

Option (b) is better deal as the present value of payments ($17,234.18) is less than Present value of the payments for option (a); $20,000.

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When companies set their dividend payout, they generally aim for a rate that is?
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