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saul85 [17]
2 years ago
13

Suppose Jose splits his spending across scones and coffees. Due to droughts in coffee-producing regions, the price of coffee dou

bles. How will the income and substitution effects affect his spending on scones?
Business
1 answer:
Slav-nsk [51]2 years ago
7 0

Answer:

He will be less likely to spend on scones.

Explanation:

Understanding the spending pattern requires to understand the factors involving in purchasing.

  1. Income: Some people live tightly, and for that they have to cut down their expenditures and that affects their spending. Jose will not have much issues although buying scones because they will not be expensive, so this relationship is negative.
  2. Substitution: This will probably affect the the spending of Jones on scones because he used to buy both together, and if he stops spending on coffee he will not buy scones as well.
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After identifying various market segments that her company could pursue, Linda evaluated each segment's attractiveness based on
sashaice [31]

Answer:

Market Targeting

Explanation:

This is a process of identifying different segments of a market's attractiveness and identifying a particular one to enter.

It guides towards making the best decision at market selection stage ,that will be of a great value  to the organization..

The two basic stages involved are evaluating the market and selecting market target segments and targeting strategy.

Size and growth , attractiveness ,income , accessibility and availability of resources are factors to be considered during the process

8 0
3 years ago
Johansen Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The
soldier1979 [14.2K]

Answer:

A) $2.50 per direct labor-hour

Explanation:

The computation of the predetermined overhead rate is shown below:

Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours)

where,

Estimated manufacturing overhead = Rent on factory building  + Depreciation on factory equipment + Indirect labor + Production Supervisor's salary

= $15,000 + $8,000 + $12,000 + $15,000

= $50,000

And, the estimated direct labor hours is 20,000

So, the rate is

= $50,000 ÷ 20,000

= $2.5 per direct labor-hour

8 0
3 years ago
Gabe Industries sells two​ products, Basic models and Deluxe models. Basic models sell for $ 44 per unit with variable costs of
12345 [234]

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Basic models sell for $ 44 per unit with variable costs of $ 25 per unit. Deluxe models sell for $ 52 per unit with variable costs of $ 25 per unit. Total fixed costs for the company are $1,323. Gabe Industries typically sells three Basic models for every Deluxe model.

First, we need to calculate the weighted sales participation:

Basic= 3/4= 0.75

Deluxe= 1/4= 0.25

Now, we need to calculate the weighted average selling price and variable cost:

weighted average selling price= (selling price* weighted sales participation)= (44*0.75 + 52*0.25)= 46

weighted average variable cost= (variable cost* weighted sales participation)= (25*0.75 + 25*0.25)= 25

Now, we can calculate the break-even point in units:

Break-even point (units)= Total fixed costs / (weighted average selling price - weighted average variable expense)

Break-even point= 1,323/ (46 - 25)= 63 units

4 0
3 years ago
Mariah Company has inventory at the end of the year with a historical cost of $ 91 comma 000. Mariah Company uses the perpetual
Marina86 [1]

Answer:

Dr. Inventory Write down............(91,000 - 71,600)....$19,400

Cr. Inventory.......................................................................................$19,400

Explanation:

The write down of the inventory value from at the end of the year with a historical cost of $ 91,000 to the current replacement cost is $ 71,600 will be recorded as follows:

<u>Journal Entries</u>

Dr. Inventory Write down............(91,000 - 71,600)....$19,400

Cr. Inventory.......................................................................................$19,400

<u>Being the write down of the value of inventory from historical cost to replacement cost at year end</u>

5 0
3 years ago
Alex is a member of a corporate sales team who frequently speaks in front of groups as part of sales presentations. He has now b
dybincka [34]

Answer: Alex tells a story about his brother that causes his friends and family in the audience to laugh.

Explanation:

The statement that describes a strategy that Alex could use to deliver a lighter speech will be for Alex to tell a story about his brother that causes his friends and family in the audience to laugh.

It's but proper for Alex to tell an embarrassing joke about his brother. Also, preparing a long statement to be delivered when it's time to toast can make the event boring.

Therefore, the correct option is A.

8 0
2 years ago
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