To calculate the cross elasticity of demand you divide the percent change in quantity by the percent change in price.
5/3 = 1.666
Answer: d. Go to Tom's as soon as possible that day, check the shipment to see if there are any undamaged goods that can be put on the shelf, take a replacement order from Tom's manager, and phone in the order immediately.
Explanation:
This indeed would be the best course of action because some of the goods will be saved while at the same time increasing your company's relationship and profile with Tom's Discount Store.
This is because Tom will be very pleased at the prompt and personal response to the situation and be more receptive towards the solution.
Once the items that are damaged are identified, placing a replacement order immediately is in line with your company's policy of returning goods over $500 if a reciprocal order is placed immediately.
With this course of action, you would endear your company to Tom's Discount store as well as manage to sell the goods in total.
Answer:
Our company will recognize the loss on its next statement date.
Explanation:
The exchange rate between two currencies is the rate at which one can be exchanged for the other during trade.
The stronger a currency the less of it will be involved in the exchange, while the weaker the currency the more of it will be required in the exchange.
In this instance the transaction is Euro based. When the payable was incured the rate was $1.2 to €1.
Now the rate has increased to $1,27 per €1. This implies that the company will lose 1.20 - 1.27= -$0.07 per every Euro.
This loss will be recorded on the next statement date.
Answer:
D. Total assets increase $100,000
Explanation:
When a company buys equipment for 150,000, its asset first increases by 150,000 because it is adding an asset to its asset list which is worth 150,000 but because one third is paid in cash which is an asset, the asset column decreases by (1/3*150,000)=50,000 as 50,000 cash is leaving the company. SO total assets increase by 100,000.
Answer:
Prepare an income statement for the company for August
Revenue (3000×$400) 1,200,000
<u>Less Cost of Sales</u>
Labour Cost for Consulting Staff (3000×$200) 600,000
Overheads 72,000
<u><em>Less</em></u> Over Applied Overheads 12,000 660,000
Gross Profit 540,000
Less Operating Expenses
Markerting and Administrative Costs 240,000
Net Income 300,000
Explanation:
Net Income = Sales - Cost of Sale - Operating Expenses
Cost of Sales in the case of RCMP involves the cost of providing a service for each of their clients.