Carlsberg beer has an elasticity of -0.5 and the company decided cut prices to increase the total revenues on New Year’s Eve.

On December 15, 2018, Rigsby Sales Co. sold a tract of land that cost $3,700,000 for $5,000,000. Rigsby appropriately uses the i

xxTIMURxx [149]

Answer:

$127,400

Explanation:

Gross profit ratio = [(sale - cost) ÷ sale price] × 100

= [($5,000,000 - $3,700,000) ÷ $5,000,000] × 100

= 0.26 × 100

= 26%.

Gross profit on down payment is recognized in 2019:

= Down payment × Gross profit ratio

= $490,000 × 26%

= $127,400

5 0

2 years ago

Explain how a school's published price (also known as<br> sticker price) and net price differs.

miv72 [106K]

Answer:

Sticker price is the published tuition and fees whereas net price is what the student pays after financial aid (much lower than sticker price).

Hope this helped! :)

5 0

2 years ago

What is profitability

kkurt [141]

Answer:

Profit, in accounting, is an income distributed to the owner in a profitable market production process (business). Profit is a measure of profitability which is the owner's major interest in the income-formation process of market production. There are several profit measures in common use.

Income formation in market production is always a balance between income generation and income distribution. The income generated is always distributed to the stakeholders of production as economic value within the review period. The profit is the share of income formation the owner is able to keep to themselves in the income distribution process. Profit is one of the major sources of economic well-being because it means incomes and opportunities to develop production. The words "income", "profit" and "earnings" are synonyms in this context.

3 0

1 year ago

Given the following financial data for Boston Technology, compute the firmâs degree of combined leverage.

Otrada [13]

Answer:

For year 2010

Degree of combined leverage is 3.82

For year 2011

Degree of combined leverage is 4.11

Explanation:

Computing the degree of combined leverage of the firm with the formula stated below as:

Degree of combined leverage = Contribution margin / EBT

where

Contribution margin is computed as:

Contribution margin = Sales - Variable Cost

EBT (Earnings Before tax) is computed as:

EBT = EBIT - Interest

Now, computing the same by applying the formula:

For year 2010

Contribution margin = $700,000 - $406,000

= $294,000

EBT = $119,000 - $42,000

= $77,000

Degree of combined leverage = $294,000 / $77,000

= 3.82

For year 2011

Contribution margin = $760,000 - $448,000

= $312,000

EBT = $122,000 - $46,000

= $76,000

Degree of combined leverage = $312,000 / $76,000

= 4.11

7 0

3 years ago

According to Keynesian business cycle theory, A. inflation is procyclical and leading. B. the procyclical movement of investmen

TEA [102]

Answer: D. the procyclical behavior of labor productivity occurs due to firms' labor hoarding practices.

Explanation:

Keynesian Economists argue that firms practice labor hoarding which is the practice of keeping workers when they should not such as when there is a Recession. They should not keep these workers because demand has slowed so keeping them means that they will not be producing to meet the demand.

The procyclical behavior of labor productivity means that labor productivity goes by the Business Cycle in that it is high when the Economy is booming and low when it is in a Recession.

Productivity is calculated by dividing goods produced by the number of labor producing them.

By refusing to fire workers during a Recession, there will be too many workers producing too few goods which will decrease labor productivity which is why according to Keynesian Economists, the productivity is low in Recessions.

7 0

2 years ago