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lisabon 2012 [21]
3 years ago
5

Suppose that the total revenue received by a company selling basketballs is $600 when the price is set at $30 per basketball and

$600 when the price is set at $20 per basketball. Without using the midpoint formula, identify whether demand is elastic, inelastic, or unit-elastic over this price range.
Business
2 answers:
drek231 [11]3 years ago
5 0

Answer: Demand is Unit - Elastic over this price range.

Explanation:

When total revenue remains the same over various price level then the demand curve is unitary elastic.

Unit-Elastic demand - It depicts a demand curve which is perfectly responsiveness to changes in cost. That is, the amount of demand changes as indicated by a similar percentage changes in prices.

A demand curve with an elasticity of 1 is called as unitary elasticity of demand.

aleksandrvk [35]3 years ago
5 0

Answer:

Unit elastic

Explanation:

In this example, the demand of the basketballs is unit elastic. Unit elastic is a type of demand in which a change in price causes a proportional change in the quantity demanded of a good. This means that the demand and supply are perfectly responsive to price changes by the same percentage. In this example, the change in price leads to a response in the demand and supply, which allows the producer to maintain the same profits.

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Answer:

increase

Explanation:

Break-even point is used to determine the minimum number of units a business needs to sell in order to fully cover the fixed costs. The break-even  formula is below;

Break-even = Fixed cost / (Sale price - Variable cost)

If sales price (SP) decreases while keeping other factors; variable cost(VC) and fixed cost(FC) constant, the denominator amount will be smaller, making the break- even point to increase.

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Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has investe
gtnhenbr [62]

Answer:

Crawford Construction

1. Crawford Construction sold and replaced its inventory:

a. 4.14 x

2. With Construction Industry Inventory Turnover Ratio as 4.55x, Crawford Construction:

b. Crawford Construction is holding more inventory per dollar of sales compared to the industry average

Explanation:

a) Data and Calculations:

Quick ratio = 2.00x,

Cash = $36,225

Accounts receivable = $20,125

Inventory = x

x= $80,500 - 36,225 - 20,125 = $24,150

Total current assets = $80,500

Total current liabilities = $28,175

Annual sales = $100,000

Using annual sales instead of cost of goods sold to calculate the inventory turnover, = Turnover/Inventory = $100,000/$24,150 = 4.14x

b) Quick ratio equals (Current assets - Inventory)/Current Liabilities.  Computing the quick ratio in place of the current ratio can be used to identify how Crawford Construction can meet its current (short-term) debts without selling inventory and recovering funds from the sale.

c) The Inventory Turnover Ratio divides the cost of goods sold by the average inventory.  The Sales value can approximate the cost of goods sold.  The ratio shows the efficiency of Crawford Construction in handling its inventory.  The higher the value of the ratio, the better, showing that Crawford is more efficient when it gets a higher turnover ratio.

7 0
3 years ago
Explain what type of business would fall under a partnership ???
scZoUnD [109]

here you go

Explanation:

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3 years ago
Henry must make set premium payments on his insurance policy until he dies, and if he cancels the policy he will receive the cas
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<span>Henry must make set premium payments on his insurance policy until he dies, and if he cancels the policy he will receive the cash value. His plan is a whole life policy.</span>
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3 years ago
When a corporation sells all or substantially all of its assets to another corporation, generally,
Svetllana [295]

Answer:

a. a majority of both shareholders and directors must approve.

Explanation:

Whenever a corporation decides to dispose off all of it's assets or substantially all of it's assets to another corporation, following points are noteworthy

  • The Board of directors first have to propose a resolution regarding disposition which has to be approved
  • Secondly post approval of the said resolution, the act of "disposition" also requires approval by the corporation's shareholders.
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In short, disposition of all or substantially all the assets requires an approval of a majority of both shareholders and directors.

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