If demand is inelastic, this means that the amount demanded doesn't change with the increase of price. In this case, if John were to raise prices, we assume that quantity demanded would stay the same and John would make more revenue.
Answer and Explanation:
The preparation of the income statement is presented below:
Service Revenue 340,000
Less:
Salaries Expense 240,000
Rent Expense 12,000
Depreciation Expense 24,000
Interest Expense 3,400
Net income $60,600
Hence, we simply deduct the expenses from the service revenue so that we get the net income
Answer: The correct answer is b.$3,050.
Explanation: Clever Computers has a five-day workweek and pays $3,050 each week. The payment will only occur at the end of the workweek when the staff have earned the wages. However, the month ended on Thursday, meaning that the staff have only worked for four-day workweek. They have therefore earned $2,440 (4/5*$3,050) at the end of the month but that payment is not due because the 5-day workweek has not been completed. The complete journals the company would raise would be Debit Wages (overhead) $2,440, Debit Wages receivable $610 and Cr Wages payable $3,050.
When it is next month after the five-day workweek has been completed, the company would Dr Wages Payable $3,050 and Credit Cash $3,050 to make the payment.
Answer:
The correct answer is $2,500,000,000.
Explanation:
According to the scenario, the computation of the given data are as follows:
Operating capacity = 80%
Sales = $2 billion
Fixed assets = $600,000,000
So, we can calculate the level of sales by using following formula:
Level of sales = Sales ÷ operating capacity
= $2,000,000,000 ÷ 80%
= $2,500,000,000
Answer:
b. location clustering near high traffic flows
Explanation:
Proximity to customers is a major consideration when deciding on a business location. A business situated in areas with many potential customers has a high probability of succeeding. Restaurants are usually strategically situated in places with heavy customer flow.
Restaurants may be established near offices, in market places, near public transport terminus, or other location convenient to customers. With time, customers tend to associate that particular building, area, or street with restaurants. As the area becomes synonymous with restaurants, more customers will visit it, leading to more restaurants to open in that locality.
