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Roman55 [17]
3 years ago
6

When the price of Nike tennis shoes goes from $100 to $80, the quantity demanded increases from 20 to 30 million. Over this pric

e range, the absolute value of the price elasticity of demand is a. 1. b. 1.80. c. 2.50. d. 0.55. e. 1.25
Business
1 answer:
PtichkaEL [24]3 years ago
4 0

Answer:

c. 2.50.

Explanation:

Elasticity of demand is defined as the degree of responsiveness of quantity demanded to changes in the price of a commodity. It is calculated as percentage change in quantity demanded divided by percentage change in price.

Elasticity is considered elastic if the value is above one, and is means an increase in price results in significant decrease in demand.

When elasticity is less than 1 it is said to be inelastic and increase in price does not result in significant change in demand.

Percentage change in quantity= (30millon- 20 million)/20 million= 0.5

Percentage change in price= (100-80)/100

Percentage change in price= 20/100= 0.2

Elasticity= 0.5/0.2= 2.5

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Dafna1 [17]

Answer:

Option (D) is correct.

Explanation:

Unit product cost:

= Direct materials + Direct labor + Variable manufacturing overhead + Fixed manufacturing overhead

= $10 + $25 + $15 + $20

= $70

Operating income using absorption costing:

= (500 units × $100) - (500 units × $70) - (500 units × $5) - $7,500

= $50,000 - $35,000 - $2,500 - $7,500

= $5,000

8 0
3 years ago
The internal financial statements of Vera Incorporated show that their beaded purses incurred an operating loss in the most rece
brilliants [131]

Answer:

Vera Incorporated

Change in annual operating income from discontinued business:

Annual Operating Income would reduce by $78,000.

Explanation:

a) Calculation of the Net Income Lost:

Loss of Contribution        ($99,000)

Avoidable fixed cost          $21,000

Reduction of Income       ($78,000)

b) The line of purses contributes $80,000 towards the company's fixed cost.  Therefore, discontinuing this line of business would lead to the loss of this steam of income.  The amount of reduced operating income will be $78,000 ($80,000 - 2,000).

4 0
3 years ago
Diane heads an event management company called Venus Inc. The company encourages an innovative and creative approach to work. Di
UkoKoshka [18]

Answer:

c. Diane should target a vision for a desired future.

Explanation:

  • As Diane heads the event management of the company she can create a creative work approach for the company by the creation of a future of planned actions.  
  • <u>And can target the vision statement of the company that is more innovative and concrete. Thereby making changes in the future mission of the company.</u>
3 0
3 years ago
The bullet points beneath a one-line mission statement often serve as A. value statements to show how the mission will be achiev
umka21 [38]
Um, Hello there. The answer to your question is probably going to be.
<span>


The bullet points beneath a one-line mission statement often serve as
A. value statements to show how the mission will be achieved.
B. a timeline for achieving the company's goals.
C. lesser goals to consider for the future.
D. a reminder of the one-line statement.</span>
3 0
3 years ago
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Due to impending labor strife over planned layoffs in its Silicon Valley headquarters, a social networking company has decided t
Ivanshal [37]

Answer:

putting a halt on the layoffs

Explanation:

This strategy should begin by putting a halt on the layoffs. This should be top priority since the layoffs themselves are the main cause for the criticism that the company is receiving and this criticism is the sole reason as to why its market position and staff productivity has fallen drastically. People think the company is failing and the staff is scared that they will eventually be fired. By stopping layoffs and waiting for a market recovery you give other better options a chance to arise and more efficient strategies to take effect.

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3 years ago
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