Answer:
Answer is option A, i.e. airlines would charge the same price to each type of flyer.
Explanation:
The elasticity of demand for air tickets by vacationers is generally found higher than that of business travelers. the reason behind this is that there is an ample amount of options as well as time in the hands of vacationers and which is not the case with the business travelers. Business travelers do not opt for other modes of transport other than the airway as this saves their time. Therefore, when one requires to create the same elasticity of demand for both types of flyers, then the prices for all of them should be kept the same.
Answer:
$250,000
Explanation:
Given that
Sales revenue = $350,000
Total variable costs = $100,000
The computation of contribution margin is given below:-
Contribution margin = Sales revenue - Total variable cost
= $350,000 - $100,000
= $250,000
Therefore, for computing the contribution margin we simply deduct the total variable cost from sales revenue.
Answer:
Statement of cash flows
Explanation:
The cash flow statements refers to the statement in which the cash inflow and cash outflow is taken place.
The cash flow statement includes three kinds of activities which are listed below:
1. Operating activities: This covers all transactions that after net income impact the working capital. It would subtract the rise in current assets and a reduction in current liabilities, while adding the decline in current assets and a rise in current liabilities.
It would adjust those changes in working capital. In fact, the depreciation cost is applied to the net income, and the loss on asset sales is added while the benefit on asset sales is deducted
2. Investing activities: it records activities that include buying and selling long-term assets. The acquisition is a cash outflow whereas the selling is a cash inflow
3. Financing activities: It reports activities that have an influence on long-term liability and equity balance of shareholders. Share issue is a cash inflow whereas redemption and dividend are cash outflows.
When bonds are issued at a premium which means bonds are issued at more than their par value. This premium amount is amortized over the life of the bond and at the end of the life bond will be equal to the face value.
A bond that's trading at a premium means that its price is trading at a premium or higher than the face value of the bond. For example, a bond that was issued at a face value of $1,000 might trade at $1,050 or a $50 premium. Even though the bond has yet to reach maturity, it can trade in the secondary market. In other words, investors can buy and sell a 10-year bond before the bond matures in ten years. If the bond is held until maturity, the investor receives the face value amount or $1,000 as in our example above.
A premium bond is a bond trading above its face value or costs more than the face amount on the bond.
A bond might trade at a premium because its interest rate is higher than the current market interest rates.
The company's credit rating and the bond's credit rating can also push the bond's price higher.
Investors are willing to pay more for a creditworthy bond from the financially viable issuer.
Learn more about bonds here
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Answer: True
Explanation:
As the proverbial 'Global policeman', the U.S. enacts sanctions on countries that it believes are acting in a way that is not beneficial to her own people or the plant at large.
This includes human rights abuses, poor labor standards and environmental standards amongst others. These sanctions are meant to hurt the sanctioned country so that they right their wrongs. Countries such as Burma are under trade sanctions due to their poor human rights record in dealing with Rohingya Muslims.