A home furniture store, David's Furnishings, lowers its prices below those of

A company has determined that changes in price will not dramatically impact the number of sales they are able to make. What shou

tester [92]

Answer:

Sell at a somewhat higher price since customers will still purchase even at a higher price ( D )

Explanation:

The type of goods and services that changes in prices doesn't r affect the quantity/demand bought by the consumers are usually staple goods which are a necessity and not a want but a serious need. A company if after much research discovers that the demand for a particular product is unwavering( fixed ) they can increase the prices in order to maximize profits form the little amount of goods been produced/sold in the open market. while in other hand if the demand for a particular product is not stable any change in price can significantly affect the demand for the good or service leading to a loss for the company.

7 0

3 years ago

What is the difference between a government and a state

nadezda [96]

Though here are few differences between State and Government, State is a sovereign authority. While Government uses the sovereign authority of the state as an element. ... State is a larger entity is includes all individuals, associations and institutions that exist within its territorial boundaries.

6 0

3 years ago

Read 2 more answers

What is the current face value of a $1,000 Treasury inflation-protected security if the reference CPI is 203.19 and the current

Stella [2.4K]

Answer:

$1,011.22

Explanation:

Price = $1000 x (205.47/203.19)

$1000× 1.01122= $1,011.22

Therefore the current face value is $1,011.22

3 0

3 years ago

Nonquantitative methods to forecast the future need for employees, usually based on the knowledge of a pool of experts in a subj

AlexFokin [52]

Nonquantitative methods to forecast the future need for employees, usually based on the knowledge of a pool of experts in a subject or an industry, is called QUALITAIVE FORECASTING in human resource forecasting.

Explanation:

Qualitative forecasting is an estimation methodology that uses expert judgment, rather than numerical analysis. This type of forecasting relies upon the knowledge of highly experienced employees and consultants to provide insights into future outcomes.
It is a statistical technique to make predictions about the future which uses numerical measures and prior effects to predict future events. These techniques are based on models of mathematics and in nature are mostly objective. They are highly dependent on mathematical calculations.
Qualitative forecasting is useful when there is ambiguous or inadequate data.
Qualitative forecasting is most useful in situations where it is suspected that future results will depart markedly from results in prior periods, and which therefore cannot be predicted by quantitative means.

3 0

3 years ago

On July1, 2018, Morrow Inc. purchased a spooler at a cost of $40,000. The equipment is expected to last five years and have a re

Mazyrski [523]

Answer:

(1) the double-declining-balance method

Depreciation for 2018 = $16,000

Depreciation for 2019 = $9,600

Book value of the spooler at December 31, 2018 = $24,000

Book value of the spooler at December 31, 2019 = $14,400

(2) the sum-of-year digits

Depreciation for 2018 = $12,000

Depreciation for 2019 = $9,600

Book value of the spooler at December 31, 2018 = $28,000

Book value of the spooler at December 31, 2019 = $18,400

Explanation:

(1) the double-declining-balance method

Note: See part 1 of the attached excel file for the computation of depreciation for 2018 and 2019 and the book value of the spooler at December 31, 2018 and 2019 using the double-declining-balance method.

Double-declining-balance method can be described as a depreciation technique in which the rate at which an asset is depreciated is twice depreciation rate for the straight line depreciation method.

The double-declining-balance depreciation rate for Morrow Inc. can therefore be calculated as follows:

Straight line depreciation rate = 1 / Number of expected useful years = 1 / 5 = 0.20, or 20%

Double-declining depreciation rate = Straight line depreciation rate * 2 = 20% * 2 = 40%

The 40% double-declining depreciation rate is what is employed in part 1 of the attached excel file table.

Note:

Although this is not part of the question but it will be useful for you in the future. The depreciation expenses for year 2022 is calculated by deducting the residual value of $4,000 from the 2022 Beginning depreciable amount (i.e. $5,184 - $4,000 = $1,184). The residual value of $4,000 therefore represents the book value at the end of year 2022.

(2) the sum-of-year digits

Note: See part 2 of the attached excel file for the computation of depreciation for 2018 and 2019 and the book value of the spooler at December 31, 2018 and 2019 using the sum-of-year digits method.

The sum-of-year digits method can be described as a depreciation method that accelerates deprecation by assuming that an asset’s productivity falls with the passage of time.

Under the sum-of-year digits method, the remaining useful life of the asset at the beginning of the period is divided by the sum of the year's digits to obtain the deprecation rate for that period.

For this question, the Sum of year digits used in the attached excel file is calculated as follows:

SYD = Sum of year digits = 1 + 2 + 3 + 4 + 5 = 15

Download xlsx

3 0

3 years ago