The most indirect marketing channel is employed when

Suppose that a 20 percent increase in the price of normal good Y causes a 10 percent decline in the quantity demanded of normal

maria [59]

Answer:

The coefficient of cross elasticity of demand is negative, and therefore these goods are complements.

Explanation:

Cross elasticity of demand is the proportionate change in the quantity demanded to the proportionate change in the price of the related goods.

Cross elasticity of demand is negative in case of complementry goods as proportionate increase in price of one goods lead to decrease in the demand of related goods as both are complimentry and demanded jointly. Example: Petrol and car.

Cross elasticity of demand is positive in case of subtitute goods as proportionate decrease in price of one goods lead to decrease in the demand of substitute goods. Example: Tea and Coffee.

8 0

3 years ago

If the sales mix is maintained, what is the total contribution margin when 180,000 units are sold? What is the operating inco

yanalaym [24]

Answer:

the question is incomplete:

The Kowalski Company has three product lines of belts - A, B, and C - with contribution margins of $3, $2, and $1, respectively. The president foresees sales of 180,000 units in the coming period, consisting of 18,000 units of A, 90,000 units of B, and 72,000 units of C. The company's fixed costs for the period are $272,000. Read the requirements.

2. If the sales mix is maintained, what is the total contribution margin when 180,000 units are sold? What is the operating income?

contribution margin = sales revenue - variable costs

in this case, we are given the contribution margin per unit sold:

belt A: contribution margin = $3, 18,000 units sold
belt B: contribution margin = $2, 90,000 units sold
belt C: contribution margin = $1, 72,000 units sold

total contribution margin = (18,000 x $3) + (90,000 x $2) + (72,000 x $1) = $54,000 + $180,000 + $72,000 = $306,000

operating income = contribution margin - period costs = $306,000 - $272,000 = $34,000

6 0

4 years ago

Last year Mason Inc. had a total assets turnover of 1.33 and an equity multiplier of 1.75. Its sales were $320,000 and its net i

docker41 [41]

Answer: d. 3.82%

Explanation:

ROE = Net Income / Equity so Equity need to be ascertained.

1.75 = Total Assets/ Total Equity

Total Equity = Total Assets/ 1.75

1.33 = Revenue / Total Assets

Total Assets = Revenue / 1.33

= 320,000/1.33

= $240,601.50

Total Equity = 240,601.50/1.75

= $137,486.57

Old ROE = 10,549/ 137,489.57

= 0.07672582

= 7.67%

New ROE = (10,549 + 5,250) / 137,489.57

= 0.11491053466

= 11.49%

Difference = 11.49 - 7.67

= 3.82%

4 0

4 years ago

Pina Company began operations on January 2, 2019. It employs 10 individuals who work 8-hour days and are paid hourly. Each emplo

Andrew [12]

Answer:

2019

Dr Salaries and wages expense 9,680

Cr Salaries and wages payable 9,680

Dr Salaries and wages expense 6,160

Cr Salaries and wages payable 6,160

Dr Salaries and Wages Payable 3,520

Cr Cash 3,520

2020

Dr Salaries and wages expense 10,560

Cr Salaries and wages payable 10,560

Dr Salaries and wages expense 6,720

Cr Salaries and wages payable 6,720

Dr Salaries and wages expense

800

Dr Salaries and wages payable 8,800

Cr Cash 9,600

Dr Salaries and Wages Expense 240

Dr Salaries and Wages Payable 5,520

Cr Cash 5,760

B. 2019 $10,410

2020 $12,175

Explanation:

(a) Preparation of journal entries to record transactions related to compensated absences during 2019 and 2020

2019

Dr Salaries and wages expense 9,680

Cr Salaries and wages payable 9,680

(10 employees * $11.00/hr. * 8 hrs./day * 11 days)

(Being to record accrue expense and liability for vacation)

Dr Salaries and wages expense 6,160

(10 employees * $11.00/hr. * 8 hrs./day * 7days)

Cr Salaries and wages payable 6,160

(Being to record accrue expense and liability for sick pay)

Dr Salaries and Wages Payable 3,520

Cr Cash 3,520

(10 employees * $11.00/hr. * 8 hrs./day*4 days)

2020

Dr Salaries and wages expense 10,560

(10 employees * $12/.00/hr. * 8 hrs./day * 11 days)

Cr Salaries and wages payable 10,560

(Being to accrue expense and liability for vacation)

Dr Salaries and wages expense 6,720

Cr Salaries and wages payable 6,720

(10 employees * $12.00/hr. * 8 hrs./day * 7 days)

(Being to record accrue expense and liability for sick pay)

Dr Salaries and wages expense

800

(9,600-800)

Dr Salaries and wages payable 8,800

(10 employees * $11.00/hr. X 8 hrs./day *10days)

Cr Cash 9,600

(10 employees * $12.00/hr. * 8 hrs./day X 10days)

(Being to record vacation time period))

Dr Salaries and Wages Expense 240

(10 employees * ($11-12) /hr. * 8 hrs./day * (7-4) last yr)

Dr Salaries and Wages Payable 5,520

(10 employees * $11.00/hr. * 8 hrs./day * (7-4) days) + (10 employees * $12.00/hr. * 8 hrs./day *(6-3) days)

=(2,640+2,880=5520)

Cr Cash 5,760

(10 employees * $12.00/hr. * 8 hrs./day * 6 days)

(Being to record sick leave paid)

B) Computation for the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2019, and 2020

1. December 31, 2019

10 employees * $11.83/hr. * 8 hrs./day * 11 days =$10,410

2. December 31, 2020

10 employees * $11.83/hr. * 8 hrs./day * 1 day =$946

Add: 10 employees * $12.76/hr. * 8 hrs./day * 11 days = 11,229

Total $12,175

($11,229+$946)

Therefore the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2019 will be $10,410 and 2020 will be $12,175

5 0

3 years ago

Floor Coverings reported the following summarized data at December 31, 2018. Accounts appear in no particular order, and all ha

Ronch [10]

Answer:

Cash 12,000 debit

Accont receivable 4,000 debit

Equipment 45,000 debit

Account payable 1,500 credit

Salaries payable 15,000 credit

Interest payable 7,500 credit

Common stock 25,000 credit

Dividens 12,900 debit

Service revenue 38,000 credit

Salaries expenses 1,800 debit

Utility expanse 1,300 debit

Rent expenses <u> 10,000 debit </u> <u> </u>

Total 87,000 87,000 credit

Explanation:

Assets and expenses account will have a debit balance

Dividends will also have a debit balance

Then liabilities (payable) accounts, equity accounts (common stock) and revenues account have a credit balance

With this in mind we arrenge the accounts and create the trial balance.

Last, we add each column. This is to make sure it is correct, debit = credit

7 0

3 years ago