Answer:
The correct answer is option B.
Explanation:
In the base period a college student buys 20 gallons of gasoline at $2 per gallon, 2 CDs for $13 each, and 4 movie tickets for $7 each.
In the next month, the price of gasoline is $2.25 per gallon, CDs cost $12.50 each, and the price of a movie ticket is $7.50.
The price index
=
=
= 106.38 or 106.4
Answer:
The answer is intensive distribution strategy.
Explanation:
Intensive distribution strategy occurs when a company tries to sell their products through as many outlets as possible, thus ensuring that customers will encounter the company’s products in various distributor points. It is generally done to increase sales of products. Companies that would use this type of strategy are typically those that are competing in a perfect competition market, since product unavailability would just make customers of the product use a different brand from a competitor’s company instead.
Answer:
The answer is below
Explanation:
i) The price elasticity of demand is given by the formula:
Since the price elasticity of demand is greater than 1 hence it is elastic
ii) Since the price elasticity of demand is elastic as a result of increase in fare, hence the total revenue would decrease.
iii)
Since the price elasticity of demand is greater than 1 hence it is elastic
Answer:
The correct answer is B.
Explanation:
Giving the following information:
The manufacturing of clear glasses takes 45,000 direct labor hours. The traditional method applies $560,000 of overhead based on direct labor hours.
We need to calculate the manufacturing overhead rate:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 560,000/(45,000 + 115,000)= $3.5 per direct labor hour
Now, we can allocate the overhead to clear glasses:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 3.5*45,000= $157,500
Answer:
D. May be recorded when the company purchases another business.
Explanation:
Goodwill is the amount in excess of the purchase price of a company acquired less all the liabilities and assets of the company purchased.
It is recorded on the balance sheet as an intangible asset.