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3 years ago

Explain the importance of elasticity

2 answers:

8 0

Elasticity of demand can help us decide which prices are suitable for the products we sell. If a price is inelastic even when the price goes up, it tells the business that they can increase the price if they want however if the price is elastic, it will change drastically when prices go up. This means businesses would have to find the equilibrium price where demand and supply meets in the middle.
hope this helps x

erma4kov [3.2K]3 years ago

5 0

Elasticity is important to pricing decisions because it helps us understand whether raising prices or lowering prices will enable us to achieve our pricing objectives.

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Nature's Garden Inc. produces wood chips, wood pulp, and mulch. These products are produced through harvesting trees and sending

Kisachek [45]

Answer:

Product Output Selling price per cubicyard net realizable value

Wood chips

20,304 cubic yards $25 507,600

Wood pulp

9,024 cubic yards $22 198,528

Mulch

14,100 cubic yards $24 338,400

Product Percentage of Net realizable value

Wood chips 48.60%

Wood pulp 19%

Mulch 32.40%

Product Allocation of Joint costs

Wood chips $15,552

Wood pulp $6,080

Mulch $10,368

Explanation:

Allocation of the joint costs of production to each product using the net realizable value method.

Joint Product Allocation

Product Output Selling price per cubic yard net realizable value

Wood chips

20,304 cubic yards $25 507,600

(20,304 x 25) = 507,600

Wood pulp

9,024 cubic yards $22 198,528

(9,024 x 22 )= 198,528

Mulch

14,100 cubic yards $24 338,400

(14,100 x 24 )= 338,400

Total $1,044,528

(507,600+198,528+338,400)

Product Percentage of Net realizable value

Wood chips 507,600/1,044,528= 48.60%

Wood pulp 198,528/1,044,528= 19%

Mulch 338,400/1,044,528= 32.40%

Total $1,044,528

Product Allocation of Joint costs

Wood chips 48.60% *32,000=$15,552

Wood pulp 19%*32,000=$6,080

Mulch 32.40% *32,000=$10,368

Total $32,000

8 0

3 years ago

Julia owes her dad $12. She wants a new blouse that just went on sale, so she borrows $20 from her sister. She pays her father $

Paha777 [63]

Answer:

I would say -27? I think that would work out as she still owes her father 7 as well as her sister 20

5 0

2 years ago

Within its human resource department, hoosier enterprises has a vice president of human resources, a director of human resour

Effectus [21]

<span>this hierarchy would suggest that Hoosier enterprises has a Tall Organization.
Tall organization held the characteristic of having a large number of managers with only small area of responsibilities.
Because of this, the managers usually only have small level of control and manage only a few people in their team.</span>

8 0

3 years ago

DL variances

diamong [38]

Answer:

Logen Construction

a. Standard hours for July Production = 3,350

b. Actual hourly wage rate = $18.25

c. Direct labor variances:

i. Labor Rate Variance = $827.50 U

ii. Labor Efficiency Variance = $720 F

iii. Total Labor Variance = $107.50 U

Explanation:

a) Data and Calculations:

Direct labor hours per frame = 5 hours

Standard hourly labor rate = $18

Standard direct labor cost per frame = $90 ($18 * 5)

Number of frames produced in July = 670

Actual direct labor hours = 3,310

Actual wages earned by workers = $60,407.50

a. Standard hours for July Production = Actual production unit multiplied by standard hours per unit

= 3,350 (670 * 5) hours

b. Actual hourly wage rate = Actual direct labor cost divided by actual direct labor hours

= $18.25 ($60,407.50/3,310)

c. Direct labor variances:

i. Labor Rate Variance = Standard direct labor rate - Actual direct labor rate * Actual direct labor hours

= $827.50 U ($18 - $18.25) * 3,310

ii. Labor Efficiency Variance = Standard direct labor hours - Actual direct labor hours * Standard Direct Labor Rate

= $720 F (3,350 - 3,310) * $18

iii. Total Labor Variance = Standard Direct Labor Cost - Actual Direct Labor Cost

= $107.50 U ($60,300 - $60,407.50)

3 0

2 years ago

Who should be involved in orientation of new employees? Why would it not be appropriate to provide employee orientation purely o

alexdok [17]

Explanation:

because you are not sure how good they are at working

5 0

2 years ago

Explain the importance of elasticity​

Explain the importance of elasticity