Answer: Non Organic beef steak
Explanation:
Elasticity of demand measures the sensitivity of a demand for a good to change in price changes. Substitute is another factor that affects the demand of a good in question. There is a positive relationship between Substitute product and the demand of the good in question. An increase in the price of a good in question will increase the demand for the substitute product and a decrease in the price of a good in question will decrease the demand for the substitute product since consumers have a choice because they can easily substitute one product with another product.
We assume that consumers buy non organic (regular) beef steak regularly, Regular Beef steak is therefore more sensitive to price changes because regular beef steak has a very close substitute which is the organic beef steak. A good that has a close substitute product is said to be more elastic or more sensitive to prices because when the price increases consumers will change and buy the substitute product, consumers have a choice. when the price of regular beef steak increases consumers will buy the substitute product which is the Organic Beef steak
The FDA does not yet regulate supplements.
Answer:
Inventory Dr.$5,790
Accounts Payable Cr.$5,790
(To record purchase of inventory on credit basis)
No Entry for Cost to Marin Company i.e $3,520 we are doing accounting for cullumber
Accounts Payable Dr.$920
Inventory Cr.$920
(To record purchase return)
No entry for Scrap Value i.e $340
Explanation:
Under perpetual inventory system, the records are update regularly for every sales and purchase accounting transaction as compared to periodic inventory where at year end accounts are updated.
No entry is required for marin cost as we will record only our purchase price for cullumber company. Scrap value is also irrelevant as we are not selling to marin rather returning the inventory we purchased from it.
Answer:
Interest paid in the first year = $420
Explanation:
This the an example of a loan amortization. A loan amortization is a method of loan repayment where a series of equal amount (instalment) is paid by the borrower to offset both the loan principal amount and the accrued interest over the loan period.
The interest paid in a year :
This is calculated as interest rate × loan balance at the beginning of the year
For Aunty Tilly, Interest paid in the first year will be:
= 12% × 3500
= $420
Equal Installment
The equal installment is calculaed as follows:
Equal amount = Loan Amount/ annuity factor
Annuity factor = (1 - (1 +r)^(-n))/ r
r- number of period, r- interest rate
Annuity factor = 1 - (1+0.12)^(-4)/0.12)
= 3.0373
in this question, the equal installment:
= 3500/3.0373
=$ 1152.32 (the question did not ask for this anyway)
