Money in your emergency fund could be wisely used:

When Elle's Espresso Bar raised its price by 10 percent, the quantity of coffee that Elle sold decreased by 40 percent. When E

victus00 [196]

Answer: Elle's coffee has lots of close substitutes while coffee has few substitutes, so the demand for Elle's coffee is more elastic than the market demand for coffee.

Here, it can be seen that when Elle's Espresso Bar raised its price by 10 percent, the quantity of coffee that Elle sold decreased by 40 percent, whereas when Elle and all her competitors cut their prices by 10 percent, the quantity of coffee sold by Elle increased by only 4 percent.

∴ The demand for Elle's coffee is more elastic than the market demand for coffee.

7 0

3 years ago

Read 2 more answers

The accounting records of Whispering Winds Corp. show the following data. Beginning inventory 3,010 units at $6 Purchases 8,130

Sindrei [870]

Answer:

$66,700

b. LIFO = $70800

67807.81

Explanation:

LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.

(8130 x 8) + [(9090 - 8130) x 6) = 70800

FIFO means first in, first out. It means that it is the first purchased inventory that is the first to be sold

(3010 x 6) + [(9090 - 3010) x $8] = 66,700

Average cost = [(3010 x 6) + (8130 x 8)] /

18060

48640

b 65040

5760

7 0

2 years ago

During 2020, Karen Building Company constructed various assets at a total cost of $12,600,000. The weighted average accumulated

Ivan

Answer:

a. $842,250

b. $842,250

Explanation:

The computation is shown below:

a. For avoidable interest

Weighted average Interest rate applied avoidable interest

accumulated expenditures

$5,205,000 10% $520,500

$2,925,000 11% $321,750

Total $842,250

($8,130,000 - $5,205,000)

Working note for interest rate applied

Particulars Principal Interest

12% ten year bond $6,047,000 $725,640

9% 3 year bond $3,023,500 $272,115

total $9,070,500 $997,755

Now the interest rate is

= $997,755 ÷ $9,070,500

= 11%

2. Now the total interest capitalized is

Total interest is

= $520,500 + $725,640 + $272,115

= $1,518,255

And, the total avoidable interest is $842,250

So we considered the lesser amount i.e. $842,250

6 0

3 years ago

Peterson's Antiquities currently has a 31 day cash cycle. Assume the firm changes its operations such that it decreases its rece

gladu [14]

Answer: 30 days

Explanation: Cash cycle refers to the amount of time it takes for a business from paying cash to its suppliers for raw materials and receiving cash from its customers fro the sales made.

Hence from the above we can say that :-

decrease in inventory will decrease the cycle.

Decrease in receivables will decrease the cycle.

decrease in payables will increase the cycle.

Thus,

cash cycle = 31 days - 2 days + 4 days - 3 days

= 30 days

6 0

3 years ago

International marketing is how a company sells a product to a likely customer in a local market.

Phantasy [73]

International marketing is how a company sells a product to a likely customer in a local market.

False

3 0

3 years ago

Read 2 more answers