Answer:
The formula is not used if consumer demand and ordering and holding costs are not constant.
Explanation:
E.O.Q formula measures the ideal quantity of order a company should purchase in order to minimize its inventory costs, such as holding costs and shortage costs. The formula, however has its limitations, in a way that it assumes that the costumer demand is constant and ordering and holding costs remain constant. This makes formula hard to use in case of seasonal changes of demand, inventory costs or lost sales revenue due to inventory shortages.
Answer:
The answer is YED for concert tickets = 20%/ 20% = 1
YED for bus rides = -20% / 20% = -1
Explanation:
income elasticity of demand (YED) = % change in Quantity demanded / % change in income
% change in income= (240-200) / 200 * 100= 20%
YED for concert tickets = 20%/ 20% = 1
YED for bus rides = -20% / 20% = -1
The income elasticity of demand for concert tickets and bus rides is unitary which means the rise in income is proportionate to the increase in the quantity demanded.
Answer:
$46,000.
Explanation:
To know the retained earnings at the end of 2015, we first need to calculate how much dividend the company will pay to its shareholders then add up the net income in 2015 to the remaining of retained earning at the end of 2014 (after paying 2014's dividend at Mar 2015) to get retained earnings at the end of 2015.
Total dividend in on Mar 2015 = 0.7 x 100,000 = 70,000
Retained Earning at the end of 2015 = 94,000 - 70,000 + 22,000 = 46,000.
The average cost curve and the variable revenue curve are two lines which intersect at level of output when the firm is supplying and that business is earning zero economic profits.
If the price which the firm is charging from customer is higher than its average cost of production for the quantity of the goods produced, then the firm will earn profits to a large extent.
Conversely, if the price which is charged by the firm is lower than its average cost of production, the firm will suffer losses.
Thus when the cost is equal to the revenue of the firm it means there is no profit at all. At this level the average cost curve will intersect the revenue curve.
To know more about marginal cost curve here:
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Answer:
The correct answer is A.
Explanation:
Giving the following information:
The retail value of the inventory is $478,000. The ratio of cost to retail price is 60%. What is the amount of inventory to be reported on the financial statements?
Inventory= 478,000*0.60= $286,800
