Answer:
The Cross elasticity of demand will be the change in demand at Sweat-it-out divided by the change in price at Pump-U-Up
=-0.16/-0.1
= 1.6
Explanation:
The Price decrease from Pump-U-up = 10%
And the resultant decline in Gym membership at sweat-it-out is 16%
The Cross elasticity of demand will be the change in demand at Sweat-it-out divided by the change in price at Pump-U-Up
=-0.16/-0.1
= 1.6
A Positive Cross - Price elasticity indicates both Gyms are close substitutes of one another.
An attempt by one to lower its price will directly impact negatively in membership of the other.
The strategy often adopted in such line of Business is to keep prices at Par or offer distinctive services outside of the traditional, e.g include a Spar into the gym membership, or access to discounted toning or body building products etc.
Answer:
b. $750 per direct labor
Explanation:
Calculation for the what was the predetermined overhead rate
Using this formula
Predetermined overhead rate=Factory overhead / Direct labor hours
Let plug in the formula
Predetermined overhead rate=$1,500,000/$200,000 hours
Predetermined overhead rate= 7.5*100
Predetermined overhead rate=$750 per direct labor
Therefore the predetermined overhead rate will be $750 per direct labor
Answer:
The total cost of operating a truck would be $18000 as calculated below.
Explanation:
The total costs of operating the truck is a combination of fixed costs of $5500 per year and variable of $0.50 per mile ,hence the total cost function is given as:
TC=5500+0.50X
Where represents the number of miles driven per year.
Since X=25000 miles
TC=$5500+($0.50*25000)
TC=$5500+$12500
TC=$18000
The understanding here is that wages paid to the two employees working with the truck is already embedded in the fixed costs of $5500 per year, otherwise that would been given as a distinct cost entirely.
Answer:
The answer is: $2,300
Explanation:
To determine the ending balance of the account Allowance for Bad Debts of Blended Corporation, we can use the following formula:
ending balance = beginning balance - amount wrote off + recorded bad debts
ending balance = $1,300 - $1,800 + $2,800 =$2,300
Answer:
An exception based on public policy.
Explanation:
Employment at will according to the United States is a doctrine that permits the employer and employee to work together in an indefinite period of time, whereas they are able to terminate their contract with any necessary fair clause.
In many counties around the world, employers always look for reasons to terminate or stop their employees from working, whereas an exception based on public policy negate this doctrine.
