Answer: d. is elastic.
Explanation:
A good is said to be elastic when its price elasticity of demand is greater than one.
Price elasticity of demand shows the change in quantity demanded as a result of a change in price.
Formula is:
= Percentage change in quantity demanded / Percentage change in price
Percentage change in price = (100 - 120) / 120 = -16.7%
Percentage change in quantity demanded = (13 - 10) / 10 = 30%
Price elasticity of demand = 30% / -16.7%
= -1.8
Price elasticity of demand is greater than the number 1 so this is elastic.
No, Conversion is not limited to Theft.
Answer and Explanation:
The computation of the expected rate of return and the standard deviation is shown below;
The Expected Rate of Return is
= Weighted × expected rate of return + weighted × t-bill rate
= 0.60 × 20 + 0.40 × 5
= 14%
And,
The Standard Deviation is
= Weighted × standard deviation + weighted × 0
= 0.60 × 36 + 0.40 × 0
= 21.60%
Answer:
Under variable costing, the company's net operating income for the year would be $60,000 lower than under absorption costing.
Explanation:
The computation of the operating income under variable costing is shown below:
But before that following calculations need to be done
Fixed manufacturing overhead per unit is
= $240,000 ÷ 20,000 units
= $12 per unit
Ending Inventory units is
= 20,000 units - 15,000 units
= 5,000 units
Now Cost of ending Inventory deferred under absorption costing is
= 5,000 units × $12
= $60,000
So, the second option is correct