Answer: $6,600
Explanation: According to the question, The price elasticity of demand for cars is unitary meaning that any percentage increase or decrease in price of a product will give an equal increase or decrease in the demand for the product.
If cars are sold at $20,000 and current sales is 30 units. To increase the quantity sold to 50 units, there must be a price reduction.
what percentage of increase in quantity to be sold do we have? 50 - 30 = 20
20/30 = 66.67 appx 67%
Meaning that a 67% decrease in price of the car will give an equal 67% increase in sales quantity.
The new price of the car will be $20,000 * 67% = $13,400
new price = $20,000 - $13,400 = $6,600
Answer:
Net Cash inflow from operating activities = $125,000
Explanation:
Cash flow from operating activities means only those transactions involving cash which are related to daily business of the company.
Net income = $100,000
Add: Depreciation = $17,500
Add: Amortization = $5,000
Add: Loss on sale of equipment = $2,500
Net Cash inflow from operating activities = $125,000
Note:
1. Depreciation and amortization are non cash expenses thus, added back.
2. Loss on sale of equipment is added as does not relate to operating activity. The entire amount received from sale of equipment is added to investing activity.
Final Answer
Net Cash inflow from operating activities = $125,000
Answer:
C. Matrix Structure
Explanation:
Based on the information provided within the question it can be said that the project management structure that is being used is called a Matrix Structure. This is an organizational structure in which a company sets up it's relationship between the different departments as a grid or matrix as opposed to a normal hierarchy. Where each group is in charge of their own thing but can interact with anyone on the grid.
Answer:
Segment margin of product P-$27,500.00
Explanation:
The total company's segment margin is net income plus common fixed expenses.
Total segment margin=$19,500+$43,000=$62,500.00
Total segment margin can be determined as the segment margin of products Q and P
Segment margin of product Q is $35,000
segment margin of product P=$62,500-$35,000=$ 27,500.00
Hence ,the segment margin of product P is $ 27,500.00
Answer:
From the attached excel file, we havee:
Revenue and spending income from operations variance = $4,566 Favorable
Activity income from operations variance = -$5,860 Unfavorable
Explanation:
Note: See part a of the attached excel file for the flexible budget performance report that shows both revenue and spending variances and activity variances for September.
Also Note: See parts b and c of the attached excel file for the calculations of revenue and spending variances and activity variances respectively for September.
