Answer: Elastic
Explanation: When a good has close substitutes a small change in the price of the good will lead to a large change in its demand as consumers will switch to the less costly substitute good. Therefore, good with many close substitutes is likely to have relatively elastic demand, since consumers can easily choose to purchase one of the close substitutes if the price of the good rises.
Answer:
net sales for the period by Bear's Retail Store: 11,515.8
Explanation:
From the sales revenues we will subtract the returns and discounts.
sales revenues
530
4,900
<u> 6,900 </u>
12,330
sales returns
690 (6,900 for 10 items the custoemr returns 1 item)
<u><em>sales discount on Nancy </em></u>
(6,900 - 690) x 2% = 124.2
net sales: 12,330 - 690 returns - 124.2 discount = 11.515,8
Answer:
Disposable income= $74,000
Explanation:
Disposable income is the protein of a person's income that is available for saving and spending after income tax has been paid.
Disposable income is used to guage the state of the economy.
Formula for disposable income is
Disposable income = Income - Tax
Disposable income= 98,000- 24,000
Disposable income= $74,000
Answer:
Controllable Variance = $6,000 Unfavorable
Volume Variance = $4000 Unfavorable
Factory overhead cost variance = $10,000 Unfavorable
Explanation:
Controllable Variance = (Budgeted Factory Variable Overhead - Actual Factory Variable Overhead)
= ($234,000 - $240,000)
= $6,000 Unfavorable
Budgeted Factory Variable Overhead = ($394,000 - $160,000)
= $234,000
Volume Variance = (Standard Hours for Actual unit Produced - Standard Hour for normal Capacity) Fixed Factory Overhead)
=(19,500-20,000) × $8
= $4,000 Unfavorable
Controllable Variance = $6,000 Unfavorable
Volume Variance $4000 Unfavorable
Factory overhead cost variance = Controllable Variance + Volume Variance
= $6,000 + $4,000
= $10,000 Unfavorable
Answer:
$88.90
Explanation:
The computation of the target selling price is shown below:-
Total cost = Direct material + Direct labor + Variable manufacturing overhead + Fixed manufacturing overhead + Variable selling and administrative expenses + Fixed selling and administrative expenses
$18 + $14 + $9 + $11 + $6 + $12
= $70
Target selling price = Total cost + (100 + Markup percentage)
= $70 × (100 + 27%)
= $70 × 127%
= $88.90