Answer:
To increase its revenue, transit authority should lower the fare.
Explanation:
The 'elasticity of demand' measures the change in consumers response in quantity he demands as a result of the change in price, other factors remaining same.
A product is called elastic if with the increase or decrease in price, there is a drastic change in the quantity demand of the product. If the transit authority will lower its fare, then their revenue will increase as the elasticity of demand for bus trip is 1.2. By lowering the fare, the demand would increase and their revenue will increase.
Answer:
Revenue = 240000×49= 11,760,000
Variable manufacturing expense = 240000×20 = 4,800,000
Sales commission expense = 240000×8 =1,920,000
Fixed manufacturing overhead = $2,400,000
Fixed operating expenses = 245,000
Sales promotion = 140000
Profit = 2,255,000
Answer: Option C
Explanation: In simple words, revenue variance refers to the difference between the revenue one expects to earn as per the budget made for a specified period of time and the revenue it actually earned in that time.
Organisations calculate revenue variance to identify the reasons they are not performing well or the qualities they are performing more than expected.
This measure helps organisation in decision making as to whether they should make changes in their process, and if so then wheat changes, or should remain as they are.
Answer:
D hope that helps you out