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horrorfan [7]
3 years ago
10

Suppose the price of Twinkies is reduced from $1.45 to $1.25 and, as a result, the quantity of Twinkies demanded increases from

2,000 to 2,200. Using the midpoint method, the price elasticity of demand for Twinkies in the given price range is
Business
2 answers:
Nookie1986 [14]3 years ago
6 0

Answer:

The price elasticity of demand for Twinkies in the given price range is 0.641.

Explanation:

The price of Twinkies is reduced from $1.45 to $1.25.

The quantity of Twinkies demanded increases from 2,000 to 2,200.

Price elasticity of demand for Twinkies

= \frac{\frac{Q2 - Q1}{\frac{Q2 + Q1}{2} } }{\frac{P2 - P1}{\frac{P2 + P1}{2} } }

= \frac{\frac{2,200 - 2,000}{\frac{2,200 + 2,000}{2} } }{\frac{\$ 1.25 - \$ 1.45}{\frac{\$ 1.25 + \$ 1.45}{2} } }

= \frac{\frac{200}{\frac{4,200}{2} } }{\frac{\$ 0.20}{\frac{\$ 2.70}{2} } }

= \frac{\frac{200}{2100} }{\frac{\$ 0.20 }{\$ 1.35} }

= \frac{0.095}{0.148}

= 0.641

uranmaximum [27]3 years ago
6 0

Answer:

The ped is 0.64 (rounded to 2 decimal places)

Explanation:

Elasticity  is the responsiveness of quantity demanded or sold with respect to price holding all other factors constant

Price elasticity of demand (Ped)  is the change in quantity demanded in a given  market as a result of changes in pricing of goods or services offered in that market.

Ped = percentage change in quantity demanded/ percentage change in price  

The mid-point method is carried out in three steps:

  1. Compute the average price and quantity given the changes in prices and quantity. In this case, average price is 1.35 ((1.45 +1.35)/2) and average quantity is 2100 ((2200 +2000)/2)
  2. Calculate the percentage change in both price and quantity. Using the price average as the denominator. the percentage change in price is 14.815  ((1.25-1.45)/1.35) and the percentage change in quantity is 9.524 ((2200-2000)/2100)
  3. Compute the Ped: 9.524/14.815 = 0.643

Note: the price elasticity of demand has no units

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navik [9.2K]

Answer:

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(In words we will debit finished good account by shifting work in process related to the job 113 in it)

Journal entries for the  

Completion and sale of Job 85

Debit Finished Good/Inventory Account     $ 3000

Credit WIP JOB 113 Account                         $ 3000

For sales following two entries will be passed.

Debit Cost of Good Sold Account                    $ 3000

Credit Finished Good/Inventory Account        $ 3000

Debit Cash (or Receivable if credit sale)          $ 4500

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6 0
3 years ago
Knowledge Check 01 On January 1, Year 1, Abbott Company granted 92,000 stock options to certain executives. The options are exer
Westkost [7]

Answer:

$153,333

Explanation:

Calculation to determine What amount should Olympic recognize as compensation expense for 2016

Using this formula

Compensation expense =Total compensation/Vesting period

Let plug in the formula

Compensation expense=($5 x 92,000)/3 years

Compensation expense=$460,000/3 years

Compensation expense=$153,333

Therefore What amount should Olympic recognize as compensation expense for 2016 is $153,333

5 0
2 years ago
In a perpetual average cost system: a. The average is determined by dividing the total number of units sold by the cost of units
Sedaia [141]

In a perpetual average cost system a new weighted-average unit cost is calculated each time additional units are purchased.

Option B is correct

Explanation:

"Average" represents the mean expense of production items from the sale time below the perpetual method. This marginal cost is compounded by the numbers of distribution units, deducted from the stock in the possession and debited to the Expense of Items Sold balance.

Divide the prices of goods available on the market by the amount of available on the market to be using the median weighted practice, which results in the total average cost of units. The cost of the product available on the market is the amount of the original production and net sales in this estimate.

8 0
3 years ago
Marginal productivity theory assumes that a worker’s income is a function of the contribution of that worker to the value of the
Dmitriy789 [7]

Marginal productivity theory assumes that a worker’s income is a function of the contribution of that worker to the value of the output. in business, this is called the "value-added" approach.

There is a correct theory called marginal productivity theory. Wages are paid at a level equal to the marginal revenue product of labor, the MRP (value of the marginal product of labor). MRP is the increase in income caused by the increase in output produced by the last employed worker.

The marginal productivity theory of income distribution proposes that each individual should receive income based on their contribution to total output. The marginal productivity theory of income distribution has been criticized for the following reasons. Income from inheritance is inconsistent with the theory.

Learn more about Marginal revenue here: brainly.com/question/13617399

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7 0
2 years ago
The sales discounts account is a contra account to the​ ________ account
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The purchases discount account or discounts received account.
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3 years ago
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