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Sindrei [870]
3 years ago
14

An accountant increases the price he charges for his services by 14 percent. In​ response, the demand for his services decreases

by 6 percent. Will the​ accountant's revenue from his accounting services​ increase, decrease, or remain​ unchanged?
Business
1 answer:
blondinia [14]3 years ago
5 0

Answer:

Decrease

Explanation:

Given that

Change in quantity demanded = 6%

change in price = 14%

Price elasticity of demand = (Percentage change in quantity demanded) ÷ (percentage change in price)

= 6% ÷ 14%

= 0.42

Price elasticity of demand is greater than 1 that which means demand is elastic. Therefore the increase in price, the revenue will decrease because demand is elastic.

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the accompanying diagram depict's alex's demand for shoes. a. if shoes cost $50 a pair, how many pairs of shoes will alex buy?
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If shoes cost $50 a pair, the number of shoes she would buy is 5.

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2 years ago
You were appointed the manager of Drive Systems Division (DSD) at Tunes2Go, a manufacturer of portable music devices using the l
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Answer:

Answer is explained below.

Explanation:

A.

Assume the new testing equipment is rented and installed on December 31 and impact on this year's divisional operating profit

Loss from equipment write-off

Sales revenue 9,820,000    

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Fixed (cash expenditures) -4,390,000    

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Other depreciation -710,000    

Loss from equipment write-off -5,040,000    

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Loss from equipment write-off= Value of equipment -Equipment Depreciation =$6,000,000-$960,000=$5,040,000

B.

Assume the new testing equipment is rented and installed on December 31. and the impact on next year's divisional operating profit

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C.

Would you rent the new equipment - Yes Because it is benificial for Company as it is earning profit of $2,154,300

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