The answer is : The demand is elastic.
Elasticity =
[(80,000 - 180,000)/((80,000+180,000)/2)]/[($40 - $30)/(($40 + $30)/2)]|
[(-100,000/130,000)]/[(10/55)] = -.7692/.1818= -4.23
The answer is -4.23, however when considering own price elasticity of demand, we ignore the negative sign and look at the absolute value to determine whether it is elastic or inelastic.
Answer:
A. Actual Sales - Break-even sales
Explanation:
In business studies, Margin of safety (MOS) is the difference between actual/projected/budgeted sales and the level of break even sales. It is calculated by subtracting break even sales from projected or budgeted sales.
It is usually calculated by a company to know the level of percentage by which sales can drop in that company, before they start incurring losses. IT IS A MEASURE OF BUSINESS RISK.
Answer:
e. the power of buyers is low and barriers to entry are high.
Explanation:
- The cost leadership is the establishing a competitive advantage by having the lowest cost of operations and cost leadership is often driven by the company efficiency in size and sales. And the cumulative expand has a well-defined scope and the economies have chosen strategist and consists of the simultaneous cost leaderships example as Walmart and is different from the price leadership.
Answer:
True
Explanation:
Predetermined overhead rate is estimated at the start of the period by dividing the estimated manufacturing overhead cost by an allocation base. Predetermined overhead rate is quite useful especially in eliminating seasonal effects. So, the above statement is a true one important reason to apply the predetermined overhead rate is to mitigate the effects of seasonal factors.
