Answer:
Companies can achieve economies of scale by increasing production and lowering costs. This happens because costs are spread over a larger number of goods. Costs can be both fixed and variable. ... The larger the business, the more the cost savings.
Answer:
D. debit Unearned Rent Revenue, $4720; credit Rent Revenue, $4720.
Explanation:
When the Cash was received for 6 month`s Rent the entry was :
Debit : Cash $28320
Credit : Unearned Rent Revenue $28320
At 31 July when 1 month`s rent expires the entry will be :
Debit : Unearned Rent Revenue (1/6 x $28,320) $4,720
Credit : Rent Revenue $4,720
thus
We reverse the liability - Unearned Rent Revenue and recognize Revenue for the month expired.
Answer:
Decide the issuance of cost of the bonds:
The issuance cost of bonds is the sum the obliged substance raised through the issue of legally binding proclamation called bonds. The cost of securities relies on the assumed worth, time frame, the coupon rate and the market rate.
Coming up next are three general standards regarding bonds issue cost:
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On the off chance that the coupon pace of the security is equivalent to the market loan fee, at that point the security is said to be given at standard.
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On the off chance that the coupon pace of the security is more prominent than the market financing cost, at that point the security is said to be given at premium.
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On the off chance that the coupon pace of the security is lower than the market loan cost, at that point the security is said to be given at rebate.
In the current case, both the coupon rate and the market premium are 8% and are equivalent. Thus, the issue cost of bonds is equivalent to the standard worth. That is $600,000.
Answer:
royal crown cola
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded
both companies have an elastic demand because their coefficient of elasticities is greater than 1. Coke has a higher elasticity as a result, consumers would respond sharply to changes in price. this makes them enjoy less brand loyalty when compared with royal crown cola that has a lower elasticity of demand
