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Suppose that business travelers and vacationers have the following demand for airline tickets from New York to Boston:

Furkat [3]

Answer

Price elasticiy of demand for business travelers: -0.16

Price elasticity of demand for vacationers: -0.29

Explanation:

To find the price elasticy of demand (PED) using the midpoint method, we use the following formula:

$PED = \frac{(Q2-Q1)/[(Q2+Q1)/2]}{(P2-P1)/[(P2+P1/2]}$

Where Q2 and P2 are the new quantity demanded and new price respectively, and Q1 and P1 are the old quantity demanded and price.

Plugging the amounts into the formula we obtain the results of the answer.

Because both results are in absolute value less than one (0.16 and 0.29), we can say that the PED of tickets, for both vacationers and Business traveleres, is relatively inelastic. (Demand falls less in proportion to the change in price).

4 0

3 years ago

For interim financial reporting, a company's income tax provision for the second quarter of 20X4 should be determined using the:

Setler [38]

Answer:

The corporation tax of company for interim financial reporting must be determined using previous quarter corporation tax amount minus previous quarter tax surplus or plus previous quarter tax deficit.

Explanation:

This is one of the way we estimate the corporation tax which helps in the better estimation. This way of estimating the corporation tax is recommended methods by the International Accounting Standard IAS 12 Taxes, for estimating taxes for interim and yearly financial reporting.

4 0

3 years ago

Special Plc has an issued share capital at 1 January 2019 of 1,000,000 ordinary shares of 20p each and 50,000 convertible prefer

coldgirl [10]

Answer:

A. £4.15

B.£4

Explanation:

A. Calculation for the diluted EPS for 2019

Using this formula

2019 Diluted EPS =(Earnings after tax for the year ended-Preferred Dividends)/Total Diluted Shares Outstanding

Let plug in the formula

2019 Diluted EPS=[£5,000,000-(£2.50 per share*50,000)/£1,000,000+ (£250,000*500/£1,000)+(50,000*£1)]

2019 Diluted EPS=[£5,000,000-(£2.50 per share*50,000)/£1,000,000+ (£250,000*0.5)+(50,000*£1)]

2019 Diluted EPS=[(£5,000,000-£125,000)/(£1,000,000+£125,000+£50,000)]

2019 Diluted EPS=£4,875,000/£1,175,000

2019 Diluted EPS=£4.15

Therefore 2019 Diluted EPS (Earning per share) will be £4.15

B. Calculation for the diluted EPS assuming that the convertible preference shares were receiving a dividend of £6 per share instead of £2.50.

Diluted EPS=[£5,000,000-(£6 per share*50,000)/£1,000,000+ (£250,000*500/£1,000)+(50,000*£1)]

Diluted EPS=[£5,000,000-(£6 per share*50,000)/£1,000,000+ (£250,000*0.5)+(50,000*£1)]

Diluted EPS=[(£5,000,000-£300,000)/(£1,000,000+£125,000+£50,000)]

Diluted EPS=£4,700,000/£1,175,000

Diluted EPS=£4

Therefore the Diluted EPS (Earning per share) will be £4

6 0

3 years ago

The Business Auto Coverage Form is intended for which of the following businesses? Select all that apply.

Karolina [17]

Answer:

A) Owned private passenger autos

B) Mobile equipment registered to drive on public roads

D) Automobiles owned by employees used for business purposes

Explanation:

Business Auto Coverage Form is used to cover a company's autos, trucks, trailers, semitrailers and mobile equipment that are owned or used by the company.

It also covers vehicles that are not owned by the company but are used by the company's employees while doing business related activities, e.g. automobiles owned by employees and used for business activities.

It only covers mobile equipment that is registered to drive on public roads, e.g. cranes, drills, shovels, tractors, etc.

4 0

3 years ago

A variable annuity is a: A face amount certificate company B management company C fixed unit investment trust D participating un

ki77a [65]

Answer:

D participating unit investment trust

Explanation:

A variable annuity is a contract between you and an insurance company. It serves as an investment account that may grow on a tax-deferred basis and includes certain insurance features, such as the ability to turn your account into a stream of periodic payments. You purchase a variable annuity contract by making either a single purchase payment or a series of purchase payments.

A variable annuity offers a range of investment options. The value of your contract will vary depending on the performance of the investment options you choose. The investment options for a variable annuity are typically mutual funds that invest in stocks, bonds, money market instruments, or some combination of the three.

8 0

3 years ago