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2 years ago

7

a company has net sales of $126,000, cost of goods sold of $72,000, operating expenses of $38,000, and other expenses of $3,000.

the company's net income is

1 answer:

earnstyle [38]2 years ago

3 0

Answer:

$13,000

Explanation:

Net income= net sales -net expenditure

in this case:

net sales=$126,000

net expenses = $113,000 {COGS + operating exp.+other exp.}

Net income= $126,000-$113,000

=$13,000

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Comdex Inc. manufactures parts for the telecom industry. One of its products that currently sells for $210 is now facing a new c

strojnjashka [21]

Answer:

$147

Explanation:

The computation of the target cost of the product if the desired prodit percentage is considered

Given that

Currently sale price = $210

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So the target cost of the product is

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= $210 - $63

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2 years ago

Which of the following should be added to the net income in calculating net cash flow from operating activities using the indire

liubo4ka [24]

Answer:

a.

Explanation:

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1. Discuss the consumer decision making process for a product such as canned/packaged tuna and the response hierarchy model this

steposvetlana [31]

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2 years ago

1. Choose a real or made up example of a company, and describe at least three variable costs the

Softa [21]

Answer:

Let Sanguine Wines Ltd. refer to a hypothetical company for the purpose. Following would constitute Sanguine Wines Ltd's variable costs:

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3 years ago

Andrina always spends 30 % of her income on thingamabobs. Assume that her income increases by some percentage while the price of

Leni [432]

Answer

<em>What is Income Elasticity of Demand? </em>

Income elasticity of demand is the ratio of percentage change in quantity of a product demanded to percentage change in the income level of consumer. It is a measure of responsiveness of quantity demanded to changes in consumers income.

Income elasticity of demand indicates whether a product is <em>a</em> <em>normal good or an inferior good.</em> When the quantity demanded of a product increases with an increase in the level of income and decreases with decrease in level of income, we get a positive value for income elasticity of demand. A positive income elasticity of demand stands for a normal (or superior) good. When the quantity demanded of a product or service decreases in response to an increase and increases in response to decrease in the income level, the income elasticity of demand is negative and the product is an inferior good.

Formula

Income Elasticity of Demand Ei%\ Change in Quantity Demanded%\ Change in Consumers Income

Percentages are calculated using the mid-point formula, i.e. by dividing the change in quantity by average of initial and final quantities, and change in income by the average of initial and final values of income. Therefore:

Income Elasticity of Demand - Ei = Qf - Qi ÷ Qf + Qi ÷ 2 ÷ If - Ii / If + Ii ÷2

Income Elasticity of Demand - Ei = % Change in Quantity Demanded ÷ % change in consumer Income

<em>Where:</em>

Qf - is the final initial quantities demanded of the product,

Qi - is initial quantities demanded of the product,

If - is the final incomes of consumer

Ii - is the initial incomes of consumer.

∴

Question

What is her income elasticity of demand for thingamabobs?

Solution:

From the Problem, it can be deduced that -

Qf - assume it to be 60 since it is not given

Qi - assume it to be 50 thingamabobs?

If - assume it to be 40% since it is not given

Ii - 30%

Assume the % increase in Income to be

∴

Ei = 60 -50/ 60 + 50 ÷ 2 ÷ 40 - 30 / 40 + 30 ÷ 2

Ei = 10/110 /2 ÷ 10/70 ÷ 2

Ei = 10/11 X 70/10 ÷ 2

Ei = 10/55 x 14

Ei = 28/11 = 0.73%

Therefore the Income elasticity of demand for Adrina is 0.73 %

5 0

3 years ago