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3 years ago

If a company increases its sales price per unit for productâ€‹ a

Business

1 answer:

Effectus [21]3 years ago

7 0

Answer:

TR decreases if Demand is Elastic, TR increases if Demand is Inelastic

Explanation:

Price Elasticity of Demand is the responsive change in price, due to change in price. Elastic demand means demand responds more to price change, Inelastic demand means demand responds less to price change. Total Revenue is the total receipt value from sales = Price x Quantity

If demand is elastic : price & total revenue are inversely related - price increase, demand decrease & price decrease, demand increase.
If demand is inelastic : price & total revenue are directly related - price increase, demand increase & price decrease, demand increase

So, If a company increases its sale price per unit of a product :

Total Revenue would increase as a result of price rise, if demand is Inelastic
Total Revenue would decrease as a result of price rise, if demand is Elastic

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When customers buy computers at Maalik's store, he offers a service package at a discounted rate. Additionally, he has an ongoin

salantis [7]

Answer:

Impacting his clientele base with increased profitability and to extend the duration of customer relationships.

Explanation:

Maalik is focused on improving customer relationship management, impacting the profitability of existing customers and extending the duration of customer relationships by offering a service package at a discounted rate and a promotion that allows customers to trade in their old computers for new ones at much lower prices than his competitors can offer.

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3 years ago

Suppose Frank owns a vintage Porsche in mint condition. He agrees to sell it to Smith, but the night before the parties are to e

Korvikt [17]

Answer:

This is a situation arising from objective impossibility.

Explanation:

The contract was made for mint condition of car. The car damaged while it was with Frank. Thus, parties are thus discharged from their obligations under the contract.

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3 years ago

Read 2 more answers

Regarding the four-step closing process under the periodic inventory system, ________. A. Sales Revenue is closed with a credit

ziro4ka [17]

Answer:

The correct answer is D. the ending merchandise inventory balance must be recorded as a debit via the Income Summary account

Explanation:

In the permanent inventory system, all purchases, sales, discounts and returns on purchases and sales are recorded at cost, in the account Goods not Manufactured by the Company. Thus: Purchases: the acquisition of merchandise is accounted for with a debit in the Merchandise not Manufactured by the Company account and a credit in Banks or Suppliers, as the case may be.

The initial inventory represents the value of the stock of merchandise on the date the accounting period began. This account is opened when the control of the inventories, in the Major General, is carried out based on the speculative method, and does not return to movement until the end of the accounting period when it will be closed with charge at cost of sales or by Profit and Loss directly. And it is the detailed and detailed relationship of the stock of merchandise that a company has when starting its activities, after making a physical count.

The final inventory is made at the end of the accounting period and corresponds to the physical inventory of the merchandise of the company and its corresponding valuation. By relating this inventory to the initial one, with the net purchases and sales of the period, you will obtain the Gross Profits or Losses in Sales of that period. is the list of stocks at the end of an accounting period.

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3 years ago

Should the United States pass a balanced budget amendment? Explain your answer.

ZanzabumX [31]

Answer:

There is no balanced budget provision in the U.S. Constitution, so the federal government is not required to have a balanced budget and Congress usually does not pass one. Several proposed amendments to the U.S. Constitution would require a balanced budget, but none have been enacted.

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2 years ago

Read 2 more answers

A review of the ledger of Wildhorse Company at December 31, 2020, produces the following data pertaining to the preparation of a

Neko [114]

Answer:

Salaries expense 5,190

Salaries payable 5,190

unearned rent revenue 90940 debit

rent revenue 90940 credit

advertizing expense 6,800 debit

prepaid advertising 6,800 credit

interest expense 3,934 debit

interest payable 3,934 credit

Explanation:

Salaries accrued

5 employes $750 each = 3750

3 employees $480 each = 1440

Total = 5190

Rent revenue

$6,670 per month x 5 lease x 2 months (from Nov 1st to Dec 31st) =66700

$6,060 per month x 4 lease x 1 month = 24240

total 90940

advertizing:

8,400 / 12 months x 8 months expired = 5600

9,600 / 24 months x 3 months expired = 1200

total 6,800

interest on note payable:

principal x rate x time

56,200 x 12% x 7/12 = 3,934

8 0

2 years ago