Answer:
The correct answer is option B.
Explanation:
A price elasticity of demand is always negative for normal goods. It indicates that the price increase causes demand to fall.
The price elasticity less than 1 means demand is less elastic or inelastic. In other words, a change in price will lead to a smaller change in demand.
Similarly, a price elasticity greater than 1 means demand is highly elastic. So a change in price will lead to a greater change in demand.
Since, afternoon shows have less elastic or inelastic demand, the theatre should charge higher price for them.
While, the evening shows are highly elastic so the theatre should charge lower price.
In this way theatre can maximize total revenue.
Answer:
30,000 units
Explanation:
According to the inventory cost model, the production run size that minimizes costs is given by:
Where D is the annual demand (1,500,000 items), S is the cost of each production run ($900) and H is the holding cost per unit ($3). Applying the given data:
Each production run should consist of 30,000 units.
Answer:
the relevant cost will also include the differential cost for taking the order as it is related to the order being taken or not.
Explanation:
The product is regularly used therefore, it will be sold in the future.
addtional inventory cost:
6,600 x (9.80 - 9.40) = 2,640
Cost of good sold
1,300 x 9.20 = 11,960
<u><em>Total cost for the order 14,600</em></u>
Answer: See explanation
Explanation:
The Accounts Payable balance would be calculated as:
Beginning balance = $9800
Less: Amount Paid = $2400
Account payable = $7400
The Accounts Receivable balances at June 30, 2016 would be:
Beginning balance = $5600
Less: Amount received = $3900
Account receivable balance = $1700
Answer:
$12,663.26
Explanation:
The computation of the minimum selling price is shown below
Semi-annual = 12% ÷ 2 = 6%
Semi-annual compounding periods = 5 × 2 = 10
Semi-annual coupon (for 10 bonds) = $10,000 × 6.6% x (1 ÷ 2) = $330
as we know that
We assume the selling price be S
Present worth (PW) of the bond= PW of future cash flows
$9,500 = $330 × P/A(6%, 10) + S × P/F(6%, 10)
$9,500 = $330 × 7.3601 + S × 0.5584
$9,500 = $2,428.83 + S × 0.5584
S × 0.5584 = $7,071.17
= $7,071.17 ÷ 0.5584
= $12,663.26
