Answer: The price elasticity of demand for good A is 0.67, and an increase in price will result in a increase in total revenue for good A
Explanation:
The following can be deduced form the question:
P1 = $50
P2 = $70
Q1 = 500 units
Q2 = 400 units
Percentage change in quantity = [Q2 - Q1 / (Q2 + Q1) ÷ 2 ] × 100
Percentage change in price = [P2 - P1 / (P2 + P1) ÷ 2 ] × 100
% change in quantity = (400 - 500)/(400 + 500)/2 × 100
= -100/450 × 100
= -22.22%
% change on price = (70 - 50)/(70 + 50)/2 × 100
= 20/60 × 100
= 33
Price elasticity of demand = % change in quantity / % change on price
= -22.22 / 33
= -0.67
This means that a 1% change in price will lead to a 0.67% change in quantity demanded. As there was a price change, there'll be a little change in quantity demanded because demand is inelastic. Thereby, he increase in price will lead to an increase in the total revenue.
Therefore, the price elasticity of demand for good A is 0.67, and an increase in price will result in an increase in total revenue for good A
A. 4.8%
B. 1.04%
C. 13.6%
D. 11.5%
A. 9%
B. 3.53%
C. 5.3%
D. 11.1%
Answer:
inputs, outputs, transformation processes, and feedback.
Explanation:
The viewpoint of the system that could see the organziation as the entities as they should be made of the input as the raw material, output as the finished product, transformation process as when the raw material is converted into the finished product and the feedback as the client feedback related to the product and service
So as per the given situation the above should be the answer
Answer: Decrease by $70000
Explanation:
Before the Barbecue Division is eliminated, the profit gotten will be:
Revenue from Barbecue Division sales = $510,000
Less: Salaries = $110000
Less: Direct material = $315000
Profit = $70000
Therefore, based on the analysis above, If Barbecue Division were eliminated, profitability would decrease by $70000
<span>Cash conversion cycle is an efficiency ratio which measures the number of days for which a company’s cash is tied up in inventories and accounts receivable. It is aimed at assessing how effectively a company is managing its working capital.
Formula
Cash Conversion Cycle = DSO + DIO – DPO
Where,
DSO is days sales outstanding = Average Accounts Receivable Ă— 365 Ă· Credit Sales
DIO is days inventory outstanding = Average Inventories Ă— 365 Ă· Cost of Goods Sold
DPO is days payables outstanding = Average Accounts Payable Ă— 365 Ă· Cost of Goods Sold
DSO=(97,900*365)/324,000=110.2
DIO=(126,300*365)/282,000=163.5
DPO=(115,100*365)/282,000=149
Cash Conversion Cycle = DSO + DIO – DPO
Cash Conversion Cycle = 110.2+163.5-149=125(Approx)</span>
