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2 years ago

5. As the price of laptops increases from RM2,000 to RM3,500 per unit, the quantity

Business

1 answer:

zepelin [54]2 years ago

4 0

Answer:

-0.523 and inelastic

Explanation:

The computation of the price elasticity of demand using mid point formula is given below:

= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of quantity demanded)

where,

Change in quantity demanded is

= Q2 - Q1

= 150 units - 200 units

= -50 units

And, average of quantity demanded would be

= (150 units + 200 units ) ÷ 2

= 175 units

Change in price would be

= P2 - P1

= 3,500 - 2,000

= 1,500

And, average of price would be

= (3,500 + 2,000) ÷ 2

= 2750

So, after solving this, the price is -0.523

Since the price elasticity of demand is less than 1 so it would be inelastic

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marta [7]

Answer:

Target sales revenue = $7,830,000

Explanation:

given data

target price = $270

annual target sales volume = 29,000

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Target sales revenue

solution

we will get here Target sales revenue that is express as

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put here value we get

Target sales revenue = $270 × 29000

Target sales revenue = $7,830,000

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1 year ago

The lifo cost flow assumption assumes that the cost of items purchased ______ are the costs that will be transferred first to co

kkurt [141]

Answer:
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2 years ago

The Dante Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated below. T

evablogger [386]

Answer:

a) incremental net income

net income year 1 = ($16,500 - $3,500 - $8,000) x 0.65 = $3,250

net income year 2 = ($17,000 - $3,600 - $8,000) x 0.65 = $3,510

net income year 3 = ($17,500 - $3,700 - $8,000) x 0.65 = $3,770

net income year 4 = ($14,500 - $2,900 - $8,000) x 0.65 =$1,340

b) incremental net cash flow

cash flow year 1 = [($16,500 - $3,500 - $8,000) x 0.65] + $8,000 - $430 = $10,820

cash flow year 2 = [($17,000 - $3,600 - $8,000) x 0.65] + $8,000 - $480 = $11,030

cash flow year 3 = [($17,500 - $3,700 - $8,000) x 0.65] + $8,000 - $380 = $11,390

cash flow year 4 = [($14,500 - $2,900 - $8,000) x 0.65] + $8,000 + $1,670 = $12,010

c) project's NPV

NPV = -$32,380 + $10,820/1.13 + $11,030/1.13² + $11,390/1.13³ + $12,010/1.13⁴ = $1,093.13

4 0

3 years ago

The Jackson-Timberlake Wardrobe Co. just paid a dividend of $2.15 per share on its stock. The dividends are expected to grow at

tekilochka [14]

Answer:

$34.4

$37.20

c) $59.57

Explanation:

Given:

Dividend paid = $2.15

Growth rate = 4% = 0.04

Required return = 10.5% = 0.105

Now,

a) Present value = $\frac{\textup{Dividend paid}\times\textup{(1 +growth rate)}^n}{\textup{(Required return-Growth rate)}}$

for the current price n = 1

thus,

Current price = $\frac{\textup{Dividend paid}\times\textup{(1+growth rate)}^n}{\textup{(Required return-Growth rate)}}$

= $\frac{\textup{2.15}\times\textup{(1 +0.04)}^1}{\textup{(0.105-0.04)}}$

= $34.4

b) Price in 3 years

i.e n = 3

= $\frac{\textup{Dividend paid}\times\textup{(1 +growth rate)}^n}{\textup{(Required return-Growth rate)}}$

= $\frac{\textup{2.15}\times\textup{(1 +0.04)}^3}{\textup{(0.105-0.04)}}$

$37.20

c) Price in 15 years

i.e n = 15

= $\frac{\textup{Dividend paid}\times\textup{(1 +growth rate)}^n}{\textup{(Required return-Growth rate)}}$

= $\frac{\textup{2.15}\times\textup{(1 +0.04)}^{15}}{\textup{(0.105-0.04)}}$

= $59.57

4 0

3 years ago