The elasticity of demand is defined as the percentage change in quantity demanded divided by the percentage change in price.
Price elasticity measures the responsiveness of the quantity demanded or supplied of an awesome to a trade in its charge. it's far computed as the percentage change in quantity demanded—or furnished—divided by using the proportion change in rate.
An elastic call for is one wherein the change in quantity demanded because of a trade in charge is huge. An inelastic call for is one in which the trade in amount demanded because of a change in rate is small. The components used right here for computing elasticity.
Fee elasticity of call for is the ratio of the proportion exchange in the amount demanded of a product to the percentage alternate in charge.
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Answer:
a. Return on Investment
ROI= Operating income/Average invested assets
Beverage Division ROI = 358 / (2,680+2,602) /2
= 358 / 2,641
= 0.13555
= 13.56%
Cheese Division ROI = 643 / (4,473 + 4,409)/2
= 643 / 4,441
= 0.14478
= 14.48%
b. Profit margin
Profit Margin= Operating income / Sales
Beverage Division = 358 / 2690
= 0.13309
=13.31%
Cheese Division = 643 / 3934
= 0.16345
= 16.35%
c. Investment turnover for the year
Investment turnover = Sales / Average invested assets
Beverage Division = 2690 / 2641 = 1.02
Cheese Division = 3934 / 4441 = 0.89
d. Beverage$'m Cheese'million
Average Assets 2641 4441
Targeted return 8% 8%
Target income 211 355
Residual Income Beverage'm Cheese'm
Operating income 358 643
Less: Target income 211 355
Residual Income 147 288
Life without math cause math helps science out ,bills and taxes just calculating things overall involves math into it
Answer:
a. $238,000
b. $292,000
Explanation:
a. Explicit Costs
These are the accounting costs associated with running the business
= Rent + Employee wages + Materials and Utilities
= 50,000 + 180,000 + 8,000
= $238,000
b. Total Cost = Explicit + Implicit Costs
Implicit Costs = Benefits foregone
= 50,000 + (5% * 80,000 if she invests the money instead)
= $54,000
Total cost = 238,000 + 54,000
= $292,000
Answer:
Direct labor cost = (units produced for May) x 0.75 x $6.50
Explanation:
Direct labor cost = units produced x direct labor hours x cost per unit
since units produced aren't given
Let units produced = 10,000 for May
Direct labor cost = 10,000 x 0.75 x $6.50 = <u>$48,750</u>