1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
elixir [45]
2 years ago
14

So, if you find that revenue goes up when you use an elasticity of 2 to estimate the effect of changing the fee from $8 to $16,

you can be sure that it will go up with a lower value of the elasticity. Question: Suppose that the increase in the fee from $8 to $16 reduces travel time in the central city from 30 minutes down to 20 minutes. What is the percentage change in the total cost of driving in central London
Business
1 answer:
Novay_Z [31]2 years ago
8 0

Answer:

The percentage change in the total cost of driving in Central London is:

= 33.33%

Explanation:

a) Data and Calculations:

Old Fee for driving per minute = $8

New Fee for driving per minute = $16

Percentage change in fee = $8/$8 * 100 = 100%

Driving time at old fee of $8 per minute = 30 minutes

Driving time at new fee of $16 per minute = 20 minutes

Percentage Change in driving time = 10/20 * 100 = 50%

Total cost of driving 30 minutes at old fee of $8 per minute = $240

Total cost of driving 20 minutes at the new fee of $16 per minute = $320

Therefore, the percentage change in the total cost of driving = ($320 -$240)/$240 * 100

= $80/$240 *100 = 33.33%

You might be interested in
King Nothing is evaluating a new 6-year project that will have annual sales of $410,000 and costs of $284,000. The project will
motikmotik

Answer:

Option (a) is correct.

Explanation:

Given that,

Sales = $410,000

Costs = $284,000

Depreciation Expense =  $510,000 × 0.1920]

                                     = $97,920

Therefore,

Operating Cash Flow:

= [(Sales - Variable Costs - Fixed Costs) × (1 - Tax Rate)] + [Depreciation × Tax Rate]

= [($410,000 - 284,000) × (1 - 0.35)] + [$97,920 × 0.35]

= [$126,000 × 0.65] + [$97,920 × 0.35]

= $81,900 + $34,272

= $1,16,172

7 0
3 years ago
Earned $16,200 of cash revenue. Borrowed $12,000 cash from the bank. Adjusted the accounting records to recognize accrued intere
maksim [4K]

Answer:

A. The amount of interest expense to record for 2018 is $320, calculated as follows: $12,000 x 8% x 4/12 = $320.

B. No amount of cash was paid for interest in 2018; i.e. = $0.00

C. Effect of each transaction on balance sheet, income statement, and statement of cash flows:

1. Cash Revenue of $16,200

Balance Sheet - Cash and Retained Earnings are increased by $16,200.

Income Statement - Revenue is increased by $16,200.

Statement of Cash Flows: Cash inflows are increased by $16,200.  It is an operating activity (OA)

2. Bank Note Payable of $12,000 with accrued interest of $320 for 2018:

Balance Sheet - Cash and Notes Payable are increased with $12,000; Interest on Notes Payable is increased by $320 and Retained Earnings decreased by $320.

Income Statement: Net Income is decreased by $320.

Statement of Cash Flows: Cash inflows are increased by $12,000.  It is a financing activity (FA).

Explanation:

1. Cash revenue increases net income and Cash Account balance, and reflects positively on the cash flows for operating activities.

2. Notes Payable increases Cash Account balance (an asset) and Notes Payable (a liability).  It also increases the cash inflow for financing activities.

3. Accrued Interest on Notes Payable increases liability and decreases the net income, which reflects negatively on the Retained Earnings (Equity).  It does not affect the statement of cash flows as no disposal had been made yet.

4 0
3 years ago
The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions:
Rainbow [258]

Answer:

d. $75,000

Explanation:

                                total         Los Angeles    Bay Area  Central Valley  

Revenues           $750,000      $200,000     $235,000    $325,000

Variable exp.      $410,000        $110,000      $120,000     $180,000

Controllable       $210,000         $65,000        $75,000      $70,000

<u>fixed expenses                                                                                      </u>

controllable        $130,000        $25,000        $40,000      <u>$75,000</u>

profit margin

Noncontrollable fixed expenses and common fixed expenses are not included in the calculation of individual controllable profit margin.

7 0
3 years ago
Budgeting, analysis of investment proposals, and provision of funds are activities associated with the _______ function.
AleksAgata [21]

Answer:

<em>Budgeting, analysis of investment proposals, and provision of funds are activities associated with the </em><em><u>finance</u></em><em> function.</em>

Explanation:

<em>The </em><em>finance </em><em>function</em><em> </em><em>manage</em><em>s</em><em> </em><em>a </em><em>business</em><em>'</em><em> </em><em>finance </em><em>and </em><em>helps </em><em>with</em><em> </em><em>the </em><em>decision</em><em>-</em><em>making</em><em>.</em><em> </em><em>This </em><em>allows </em><em>businesses</em><em> </em><em>to </em><em>manage</em><em> </em><em>in </em><em>the </em><em>modern</em><em> </em><em>world.</em>

3 0
2 years ago
List at least two signs that entrepreneurship might not be a good fit for you.
ikadub [295]
Many people are entrepreneurs. My dad actually is, but anyway...

Entrepreneurs are people who own a company or business. They are not working for another company but working for themselves.

Many citizens don't feel confident in entrepreneurship and many don't know where to start. 

Some people prefer following orders instead of making them.
Or even some don't prefer hard work. 
Just to point out, entrepreneurship is very hard, not all are successful.

I hope this helped!
5 0
3 years ago
Read 2 more answers
Other questions:
  • Assume real per capita GDP in North Metropolania is $6000 while in East Vice City it is $1500. The annual growth rate in North M
    14·1 answer
  • A company wants to set up operations in a country with the following corporate tax rate structure: Taxable Income Tax Rate &lt;$
    13·1 answer
  • Jones Corp. reported current assets of $191,000 and current liabilities of $136,000 on its most recent balance sheet. The curren
    11·1 answer
  • Which of the following is true about how the "invisible hand" influences economic activity through prices when a product has low
    6·1 answer
  • Western Electronics (WE) is reviewing the following data relating to a new equipment proposal: Net initial investment outlay Aft
    6·1 answer
  • NeeeeeD HeeellllP !!!!!!!!!!!!!!!!
    11·1 answer
  • Which action would a government most likely take to reduce its<br> unemployment rate?
    14·2 answers
  • The following transactions occurred during a recent year:
    12·1 answer
  • _____ funds are highly speculative investments that seek large profits from capital gains. group of answer choices
    14·1 answer
  • When seeking financial backing from a venture capitalist, a small business owner should realize that the venture capitalist will
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!