Answer:
D. estimate price elasticity of demand by experimenting with different prices
Explanation:
Price elasticity of demand measures the degree of responsiveness of quantity demanded to changes in price.
Demand is elastic if a small change in price has a greater effect on the quantity demanded.
Demand is inelastic if a change in price has little or no effect on quantity demanded.
Demand is unit elastic if a change in price has the same proportional change on quantity demanded.
By experimenting with different prices and monitoring the different quantities demanded at each price, a new firm can determine the elasticity of demand for their product.
Price controls are set at the discretion of the government and not by firms.
Shortages imply they quantity demanded exceeds quantity supplied. It doesn't give any information on elasticity of demand.
I hope my answer helps you
Answer and Explanation:
The computation is shown below:
a.
Contribution per unit
= Selling price per unit - Variable costs per unit
= $300 - $200
= $100 per unit
Now
Break even point (units)
= Fixed costs ÷ Contribution margin per unit
= $14,000,000 ÷ $100
= 140,000 units
And,
b)
Sales units required for a target profit of $1,400,000
So,
= (Fixed costs + Target profits) ÷ Contribution margin per unit
= ($14,000,000 + $1,400,000) ÷ $100
= 154,000 units
Answer:
Income = $8,200
Less:
Federal tax 10% = -$820
State tax at 5.5% = -$451
FICA at 7.65% = -$627.30
Total deduction = -$1,898.30
Net pay = $6,301.70
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
Estimated Warranty Liability December 31, 2020
Debit Credit
Beginning balance $0
Actual Warranty Expenditure $12,000 Estimated total cost of $48,000
Warranty $800,000*6%
Ending Balance $36,000
$48,000 $48,000
Estimated Warranty Liability December 31, 2020
Debit Credit
2021 Servicing Expense $35,000 Beginning balance $36,000
Ending Balance $61,000 Estimated total cost of $60,000
Warranty $1,000,000*6%
$96,000 $96,000
So, the company should report an estimated warranty liability of $61,000 at Dec 31, 2021
