Answer:
Decrease
Explanation:
Given that
Change in quantity demanded = 6%
change in price = 14%
Price elasticity of demand = (Percentage change in quantity demanded) ÷ (percentage change in price)
= 6% ÷ 14%
= 0.42
Price elasticity of demand is greater than 1 that which means demand is elastic. Therefore the increase in price, the revenue will decrease because demand is elastic.
Answer:
The contribution margin per unit is $33.50
Explanation:
The contribution margin per unit in the case when the machine is purchased is shown below:
= Selling price per unit - variable cost per unit
= $64 - ($35 - $4.50)
= $64 - $30.50
= $33.50
hence, the contribution margin per unit is $33.50 and the same is to be considered
We simply applied the above formula
Answer:
deferral
Explanation:
Adjusting entries are when changes are made to already recorded journal entries.
Categories of adjusting entries :
- accrued revenues
- accrued expenses
- unearned revenues
- prepaid expenses
- depreciation.
Prepaid expenses are payments made for services yet to be delivered.
For example, paying for a year's worth of subscription on your streaming service
Prepaid expenses is an example of deferred payment, so the adjustment should be a deferral
Answer:
I, II and III.
Explanation:
Price ceiling refers to the price control policy that is used by the government to protect the customers who are not able afford goods at the prevailing price.
If government of a nation sets a price ceiling below the equilibrium price level then this will increase the quantity demanded for the product because now goods become more affordable to the consumers and decreases the quantity supplied because it will become less profitable for the producers.
Hence, the demand for goods exceeds the supply of goods, this will create a shortage of goods in an economy.
Answer:
$8,000
Explanation:
Income distribution deductions apply only to an estate or trust's distributable net income (DNI). In this context, the beneficiaries of an estate or a trust are taxed directly based on the money distributed to them. That means that the estate or trust can deduct distributions when calculating taxes. This is done to avoid double taxation, since the beneficiaries are taxed, then the estate or trust is not.
