Answer:
Relative responsiveness of consumer to change in price is called elasticity of demand.
Elasticity of demand here is 7.
Demand is highly elastic.
Cutting the price from $1.25 to $0.75, total revenue remains same as the elasticity of demand does not change.
Explanation:
Percentage change in quantity demanded due to percentage change in price.
Elasticity of demand=% change in quantity demanded/percentage change in price.
Small change in price caused a huge change in quantity demanded.
Answer: The Matching Principle says that we should recognize expenses in the same period that it has helped generate revenue. Thus, recognizing an allowance for doubtful debts for the year resulting from sales would satisfy that principle.
Explanation:
Answer: $618,096
Explanation:
Accumulated depreciation after 5 years = 20% + 32% + 19.2% + 11.52
= 82.72%
Value after 4 years = 3,300,000 * ( 1 - 82.72%)
= $570,240
Gain on sale = Salvage value - Net book value
= 650,000 - 570,240
= $79,760
Aftertax salvage value = 650,000 - (Gain on sale * tax)
= 650,000 - (79,760 * 40%)
= $618,096
Answer:
a. At lower levels, management have fewer controllable costs
Explanation:
The opposite is true, lower-level management have more controllabe costs than higher level management because top management focuses on the general strategy of the firm, while lower management focuses on the specific production processes.
It is in these specific production processes that many controllable costs arise. A production line supervisor (part of lower-level management) can directly control some variable costs such as energy used, amount of input, or even work hours.
D) the availability of land, labor and capital
I think