Answer:
$12,500
Explanation:
Differential revenue = Alternative A revenue - Alternative B revenue
Differential revenue = $75,000 - $62,500
Differential revenue = $12,500
Thus, the differential revenue for this decision is $12,500
Answer:
since the price elasticity of demand for students is -4, the the price charged to them should be:
price = [-4 / (-4 + 1)] x $6 = (-4 / -3) x $6 = $8
since the price elasticity of demand for faculty is -2, the the price charged to them should be:
price = [-2 / (-2 + 1)] x $6 = (-2 / -1) x $6 = $12
Answer:
The formula is not used if consumer demand and ordering and holding costs are not constant.
Explanation:
E.O.Q formula measures the ideal quantity of order a company should purchase in order to minimize its inventory costs, such as holding costs and shortage costs. The formula, however has its limitations, in a way that it assumes that the costumer demand is constant and ordering and holding costs remain constant. This makes formula hard to use in case of seasonal changes of demand, inventory costs or lost sales revenue due to inventory shortages.
Answer:
$17,820
Explanation:
Data provided in the question:
Catalog price of the merchandise = $30,000
Trade discount received = 40%
The amount of discount received = 40% of $30,000
= 0.4 × $30,000
= $12,000
Therefore,
Cost of Merchandise = Catalog price - Discount
= $30,000 - $12,000
= $18,000
also,
credit terms = 1/10, n/30
since, the payment was made within the discount period
1% of discount will be provided
thus,
amount of discount = 1% of cost of merchandise
= 0.01 × $18,000
= $180
hence,
Net cost of the merchandise
= Cost of merchandise - Discount on credit terms
= $18,000 - $180
= $17,820
Answer:
The statement is false. The largest component of GDP is private consumption, or simply: consumption.
Explanation:
Consumption includes all purchases of goods and services made by individuals and households except for the purchase of new houses (these are considered investments).
In the U.S., consumption accounts for around 70% of GDP. This is why some economists say that the U.S. is a consumer-based economy.
