Answer:
More than $1500 price per car per month has to be dropped.
Explanation:
Given:
price per car = $20,000
car sale per month = 40
rate of increase in demand = 3
Solution:
Revenue R = Price × Quantity = P * Q
From the above given data
P = 20,000
Q = 40
R = P*Q
dQ/dt = 3
We have to find the rate at which the price is to be dropped before monthly revenue starts to drop.
R = P*Q
dR/dt = (dP/dt)Q + P(dQ/dt)
= (dP/dt) 40 + 20,000*3 < 0
= (dP/dt) 40 < 60,000
= dP/dt < 60000/40
= dP/dt < 1,500
Hence the price has to be dropped more than $1,500 before monthly revenue starts to drop.
It is true that a standing bill been passed
Answer:
$21,250
Explanation:
Calculation to determine the ending balance in the inventory account
Using this formula
Cost of goods sold = Opening Inventory + Purchase during the year - Ending balance of inventory
Let plug in the formula
$28,000 = $15,250 + $34,000 - Ending balance of inventory
Ending balance of inventory = $49,250 - $28,000
Ending balance of inventory = $21,250
Therefore the ending balance in the inventory account is $21,250
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