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LiRa [457]
3 years ago
14

Suppose Nationwide increases the insurance premium they charge for their auto policies by 12 percent. In​ response, the demand f

or State Farm auto policies in a small town increases from 3 comma 000 to 3 comma 300. What is the​ cross-price elasticity of demand for State Farm auto policies in this​ town? Using the midpoint​ formula, the​ cross-price elasticity of demand for State Farm auto policies is nothing. ​(Enter your response rounded to three decimal​ places.)
Business
1 answer:
Ahat [919]3 years ago
6 0

Answer:

0.794

Explanation:

Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.

Cross price elasticity of demand = percentage change in quantity demanded of good A / percentage change in price of good B

Midpoint change in quantity demanded = change in quantity demanded / average of both demands

change in quantity demanded = 3300 - 3000 = 300

average of both demands = (3300 + 3000 ) / 2 = 3150

300/3150 = 0.095238 = 9.5238%

Cross price elasticity = 9.5238% / 12% = 0.794

If cross price elasticity of demand is positive, it means that the goods are substitute goods.

If the cross-price elasticity is negative, it means that the goods are complementary goods.

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Kogler Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its aver
blsea [12.9K]

Answer:

$12.45

Explanation:

Calculation to determine what the contribution margin per unit sold is closest to:

First step is to calculate the Variable cost per unit using this formula

Variable cost per unit = Direct materials per unit + Direct labor per unit + Variable manufacturing overhead per unit + Sales commissions per unit + Variable administrative expense per unit

Let plug in the formula

Variable cost per unit = $5.15 + $5.30 + $1.95 + $0.60 + $0.55

Variable cost per unit = $13.55

Now let determine the Contribution margin per unit using this formula

Contribution margin per unit = Selling price per unit - Variable cost per unit

Let plug in the formula

Contribution margin per unit = $26.00 - $13.55

Contribution margin per unit = $12.45

Therefore the contribution margin per unit sold is closest to:$12.45

4 0
3 years ago
An employer can refuse to hire you if you refuse a drug screening test or background check.
Kruka [31]
Yes. this statement is true.
Why?
Because it is one of the Company's requirements to have a medical certificate before you can be deployed to their company.
If in case you will refuse to follow this order from them, they have all the authority to backout from hiring you to their comapany
8 0
3 years ago
Read 2 more answers
Question 1 of 10
Montano1993 [528]

Answer:

it's most likely B or D. but you need to double check

3 0
2 years ago
When bonds are converted into common stock____.
nexus9112 [7]

Answer:

When bonds are converted into common stock____.

a. the market price of the stock and the bonds is ignored when recording the conversion.

Explanation:

This is because the conversion price, which is the price at which the convertible bond is converted into the common stock of the entity, is usually set initially when the conversion ratio is first decided on.  Therefore, the market prices of the stock and the bonds are not taken into account when the conversion recording is being done.

4 0
3 years ago
In response to the new employee end of shift policy Brianna proposes that Ollie pay its employees on their breaks instead of mak
scoundrel [369]

Answer:

Exchange influence tactic

It means to express one's promise or trading favours

Explanation:

Influence tactics are the strategies a leader or an organization adopts so as to get people committed to them, such strategy could be positive and negative, hard or soft.

Examples of influence tactics includes rational persuasions, exchange, personal appeals, pressure, consultation, Ingratiation, etc.

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3 years ago
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