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igor_vitrenko [27]

4 years ago

7

if more people try to buy a product because the price has been reduced, which of thr following most accuratly desribes what has

increased?

1 answer:

qaws [65]4 years ago

4 0

The demand has increased since they know that it is limited, and sooner or later, it will be sold out. Example: Black Friday

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The time horizon of the demand curve is one determinant of the price elasticity of demand.If the price of gasoline is relatively

Genrish500 [490]

Answer:

more

Explanation:

we know that here Price Elasticity of demand is express as

Price Elasticity of demand = PercentageChange is quantity demanded ÷ PercentageChange in price ...........................1

so that, Demand for gasoline is more elastic in the long run than in the short run because in the long run people can change their preferences and choices.

3 0

3 years ago

SCI just paid a dividend (D₀) of $1.92 per share, and its annual dividend is expected to grow at a constant rate (g) of 4.00% pe

Readme [11.4K]

Answer:

intrinsic value of SCI’s shares is $33.28 per share

Explanation:

given data

dividend (D₀) = $1.92 per share

constant rate (g) = 4.00% per year

required return (rs ) = 10.00%

to find out

intrinsic value of SCI’s shares

solution

we know that intrinsic value is here express as

intrinsic value = current dividend × ( 1+ growth rate ) ÷ ( required rate - growth rate ) .............................1

put here value we get

intrinsic value = $\frac{1.92*(1+0.04)}{0.10-0.04}$

intrinsic value = 33.28

so intrinsic value of SCI’s shares is $33.28 per share

3 0

3 years ago

Hughes Aircraft sold a four-passenger airplane for $380,000, accepting a 12% note for the purchase price. This transaction would

Semmy [17]

Answer:

a. Debit to Notes Receivable

Explanation:

Journal entry for selling an asset in return for notes receivable is;

Notes Receivable A/c Dr.

To Asset A/C

In the given case, an aircraft is sold in exchange for a note receivable. The journal entry would be:

12% Notes Receivable A/C Dr. $380,000

To Aircraft $380,000

(Being notes receivable received in exchange for aircraft sold being recorded)

Notes Receivable is an asset for the receiver as it represents amount which is due to be received. Whenever an asset account is debited, it increases their balance.

Aircraft is an asset. When an asset is sold, it is credited. Here the asset being a movable asset.

5 0

4 years ago

According to the FASB’s conceptual framework, the quality of information that enables users to identify similarities in and diff

ehidna [41]

Answer:

A) Comparability.

Explanation:

According to FASB, the objective of financial reporting is to provide information that is useful to existing and potential investors or creditors. One of the main uses given to financial reports is comparing one business to another. In order for the reports to be comparable, they must follow strict standards and be properly prepared.

If the reports aren't comparable, they use is extremely limited, since how else can you decide if investing in company A is a better idea than investing in company B. Comparability applies even to the same company, since you must be able to compare the financial results of different years in order to evaluate the performance of the company.

6 0

4 years ago

Assuming the Fashion line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the Fashio

horrorfan [7]

Answer:

A) Increase $137,500

Explanation:

Calculation for how will operating income be affected

CHANGE IN OPERATING INCOME

Sales Revenue (Additional) $850,000

(250 %* 340,000)

Less Variable expenses (Additional) ($587,500)

(250 % *$ 235,000)

Contribution Margin $ 262,500

($850,000-$587,500)

Less Fixed Expenses ($76,000)

($262,500-$76,000)

Operating Income $ 186,500

( $ 262,500-$76,000)

Less Previous Operating Income ($49,000)

Operating Income $137,500 Increase

($ 186,500-$49,000)

Therefore the operating income will increase by $137,500

7 0

3 years ago