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vovikov84 [41]
2 years ago
7

If the price of gasoline is relatively high for a long time, consumers are more likely to buy more fuel-efficient cars or switch

to alternatives like public transportation. Therefore, the demand for gasoline
a. more elastic,
b. less elastic
Business
1 answer:
kicyunya [14]2 years ago
8 0

Answer: Option A

 

Explanation: In simple words, elasticity refers to the change in demand for a product due to change in its price.

If the price for the gasoline remains high in the long run then at one point substitution effect will come into play and consumers will shift their demand to the alternatives available.

However the product like gasoline will not show decrease in demand in the short run due to price as it more of an essential good to daily life.

Thus, the correct option is A.

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Ball bearings,inc. faces costs of production as follows:
hichkok12 [17]
<span>Ball bearings can face both fixed and variable costs of production. If we take a look at the fixed costs these would be: the cost of the factory, the cost of the machine, the maintenance of the machine which are needed to create the ball bearings etc. The variable costs are: the wages of the employee, the cost of the raw materials, and utilities required to create the ball bearings.</span>
8 0
3 years ago
Read 2 more answers
Flesch Corporation produces and sells two products. In the most recent month, Product C90B had sales of $37,000 and variable exp
andre [41]

Answer:

The BEP will decrease, which is good.

The reason is that C90B has a better profit margin than Y45E so if the sales shift toward C90B the Contribution mix margin ratio will be higher and it will be easy to pay fixed cost and make a gain

Explanation:

C90B

sales  37,000

variable expenses 9,250

contribution margin 27,750

CM 0.75

Y45E

sales 29,700

variable expenses 16,335

contribution 13,365

CM 0.45

7 0
3 years ago
On January 1, Year 1, Melas Corporation purchased a machine from Wade, Inc. by issuing a 4%, $360,000, three-year note that requ
Semenov [28]

Answer:

$1,045.05

Explanation:

If a Note is issues below the face value, it is issued on discount. This discount is recorded and amortized on Note's period to maturity. This amortized Discount will be added to the the coupon payment to calculate the interest expense for the year.

Discount on Note = $360,000 - $340,497 = $19,503

Amortized Discount = $19,503 / 3 = $6,501

Interest Expense = Coupon Payment + Amortized Discount = ($360,000 x 4%) + $6,501 = $20,901 per year = $1,045.05 per six month

5 0
3 years ago
Chris owns 70 percent of ABC Corporation. ABC Corporation had acquired land known as Parcel A in 1984 for $68,000 and held Parce
Paraphin [41]

Answer:

ABC

Realized Gain (loss) = ($300)

Recognized Gain (loss) = $0

Chris

Realized Gain (loss) = $8,000

Recognized Gain (loss) = $5,000

Explanation:

Seeing as Chris owns 70% of ABC Corp which is more than 50%, that would make them related parties. As they are related, certain Transaction must be treated differently.

In this scenario for instance, ABC sold Land to Chris, for this reason, they are not allowed to recognize any losses that occur from the sale.

ABC sold the land for $65,000 with a basis of $68,000.

= 65,000 - 68,000

= -$3,000

They REALIZED a loss of -$3,000. However they are not allowed to recognize this loss so the RECOGNIZED cost will be $0.

Chris then sells the land to an unrelated party for $73,000.

Chris's REALIZED GAIN is,

= 73,000 - 65,000 (the new basis)

= $8,000

However, because Chris is related to ABC Corp, he can deduct the original loss from his Realized gain.

= 8,000 - 3,000

= $5,000

Chris's RECOGNIZED gain is therefore $5,000.

4 0
3 years ago
The following information pertains to Company A's Year 1 inventory activities:
prisoha [69]

Answer:

1 & 5) FIFO Ending Inventory $ 10,800

2) moving average:   $  10,400

3) weighted average $  9,520

4) LIFO                       $  8,800

Explanation:

January 1 Beg Inv  90 $40 subtotal: $   3,600

May 15 Purchase 160 $65 subtotal:<u>  $ 10,400   </u>

                units:   250          total:       $ 14,000

April 11 Sale 50 $70

July 25 Sale 30 $75

Total sales   80 units

Ending Inventory: 250 - 80 = 170 units

<u> FIFO </u>the ending inventory is compose of the last nits

As it follows a crhonological order is the same under periodic and perpetual:

We start from the top

May 15th 160 at 65$   $10,400

170 - 160 units = 10 units

January 1 Beg Inv  10 units at  $40 = $ 400

Total ending inventory: $ 10,800

<u>Moving average: </u>

the average is calculate based on the aailable good at hand before eahc purchase:

At April 11th the company's available goods are the beginning invenory thus the COGS is

50 units x 40 dollars each = 2,000

Then, at July 25th the inventory available is:

40 units at $40 dollars          =    1,600

and 160 units at 65 dollars   = <u> 10,400  </u>

total   200 units at                    12,000

Average: $12,000 / 200 units = $60 per unit

COGS: 30 units x $60 = 1,800

Total cost: 2,000 + 1,600 = 3,600

Ending inventory: 14,000 - 3,600 = 10,400

<u>Weighted average:</u>

we divide total goods available over the total units purchased:

14,000 / 250  = 56 dollar per unit

ending inventory 170 units x 56 per unit = $ 9,520

<u>LIFO:</u>

the last units are sold while the first are ending inventory we start from the top part :

January 1 Beg Inv  90 $40 subtotal: $   3,600

170 units - 90 units = 80 units

May 15 Purchase 80 $65 subtotal:   $<u>   5,200  </u>

                                      Total             $    8,800

6 0
3 years ago
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