Answer:
Price elasticity of demand = 2.6
Explanation:
Given:
Old price (P0) = $70
New price (P1) = $60
Old sales (Q0) = 10,000 units
New sales (Q1) = 15,000 units
Computation of Price elasticity of demand(e):
Midpoint method
By putting the value:
e = 2.6
Answer:
Customer and Product Margin under Activity-based Costing and Traditional Costing
True Statements:
1. If a customer orders more frequently, but orders the same total number of units over the course of a year, the customer margin under activity based costing will decrease.
2. If a customer orders more frequently, but orders the same total number of units over the course of a year, the product margin under a traditional costing system will be unaffected.
Explanation:
Customer Margin is the difference between the total revenue generated from a customer minus the acquisition and service costs. In the above instance, the customer margin decreases because of the costs of servicing the customer's frequent orders. Customer service costs are usually higher with more frequent orders, when activity-based costing is employed because frequent orders increase the activity level and the associated costs.
Product Margin is the profit margin generated per product. It is the markup on the cost of the product. It shows the difference in amount between the selling price and the manufacturing cost. Frequent orders cannot change the product margin under the traditional costing technique unlike it does with the activity-based costing technique.
In my opinion, we all have our own values and true colors so we can't judge and predict by only looking cover so we need time to make sure what kind of other stuffs need to fill up after her or his probation period. After that we should decide which is the best way and shouldn't terminate by just only watching cover of a new one during his or her probation period.
Answer:
$72,200
Explanation:
For computing the amount included in the income statement as an investment we need to applied the equity method which is shown below:
= Earned amount × given percentage
= $361,000 × 20%
= $72,200
We simply multiply the earned amount by Nash with the acquiring percentage i.e 20% so that the amount could come and the same is to be included in the income statement
