Answer: False
Explanation:
The price elasticity of supply measures the change in quantity supplied when the price changes.
The basic trend is that when price increases, quantity supplied increases as well. The reverse is true.
Price elasticity of supply = %Change in quantity supplied / % change in price
0.5 = -6% / Change in price
0.5 * Change in price = -6%
Change in price = -6% / 0.5
= -12%
The statement above is therefore false because price should have reduced by 12% for quantity supplied to reduce by 6%
Answer:
Instructions are below.
Explanation:
Giving the following information:
Units Produced 20,000
Units Sold 17,000
Unit Sales Price $ 240
Full Manufacturing Cost Per Unit $97
<u>Under the absorption costing method, the fixed manufacturing overhead is part of the product cost.</u>
Income statement:
Sales= (17,000*240)= 4,080,000
Cost of goods sold= (17,000*97)= (1,649,000)
Gross profit= 2,431,000
Variable Selling Expenses= (71,000)
Fixed General and Administrative Costs= (88,000)
Net operating income= 2,272,000
Answer:
Borrow $6,300.
Explanation:
The company has $10,100 cash at the beginning of June
and anticipates $31,900 in cash receipts
and $38,300 in cash disbursements during June.
This gives a positive balance of (10,100 + 31,900 - 38,300) $3,700 and
To maintain the $10,000 required balance, during June the company must:Borrow $6,300.
Elena is not correct in the two situations.
<h3>What is the effective annual rate?</h3>
Effective annual rate is the interest rate when the effects of compounding is taken account for. In order to determine if Elena is correct, the effective annual rate has to be calculated.
Effective annual rate = (1 + APR / m ) ^m - 1
M = number of compounding
(1 + 0.12 / 12)^12 - 1 = 12.68%
(1 + 0.12 / 2)^2 - 1 = 12.36%
To learn more about the effective annual rate, please check: brainly.com/question/4064975
