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Soloha48 [4]
2 years ago
11

Suppose the cross-price elasticity of travelling by bus and travelling by train is 0.7. If the price of traveling by bus increas

es by 40%, how much would the quantity of traveling by train change
Business
1 answer:
galina1969 [7]2 years ago
8 0

The quantity of traveling by train would change by 28%.

Cross-price elasticity measures how the quantity demanded of a good is affected by changes in the price of another good.

Cross price elasticity = percentage change in the quantity demanded of good A / percentage change in the price of good B.

0.7 = percentage change in the quantity of traveling by train / 40%

Percentage change in the quantity of traveling by train = 40 x 0.7 = 28%

To learn more about cross price elasticity, please check: brainly.com/question/26035503

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Under variable costing income statements, product cost would include Direct materials only Direct materials, direct labor and fi
pantera1 [17]

Answer:

Direct materials and direct labor.

Explanation:

A variable cost is the one that vary depending on the level of production or sales. The cost increase or decrease according to the level of volume change.

The variable costing charges only direct costs (material, labour and variable overhead costs) into the cost of a product. It is lower than the cost calculated under absorption costing, that also include fixed manufacturing overhead.

Fixed manufacturing overhead is considered as a periodic cost and charged from the periodic gross profits.

4 0
3 years ago
Which of these images is most likely to portray nonverbal communication?<br><br> please help asap!!
drek231 [11]
She's the last one since she's the only one you're talking to
4 0
3 years ago
Fancy Furniture produced a batch of 2,000 coffee tables at a cost of $355,000. It was discovered that the entire batch was finis
Law Incorporation [45]

Answer:

b) The $355,000 manufacturing cost of the tables already incurred.

Explanation:

The Business has already incurred this expense in making the coffee tables, this can not be done. Therefore, it does not make sense to consider this when considering whether to complete the

Tables, or sell them as they now are

All other points contribute either directly or indirectly to the decision that the company is about to take in this regard.

So, the correct answer is b

7 0
3 years ago
2. Explain the four characteristics of the price system.
goblinko [34]

Answer:

1-The four characteristics of the price system are that it is neutral, market driven, flexible, and efficient. It is neutral because prices do not favor the producer or the consumer because the they both make choices that determine the equilibrium price.

2-Why is the price system an efficient allocator of economic resources? Prices are neutral, which means they are equally fair to both consumers and producers. They are flexible which means they can adapt to changing economic conditions. Prices are familiar which means that everyone understands how they work.

3-how do prices serve as signals and incentives to producers to leave a particular market? it showed that when a strong competitor offers similar products for lower prices other producers must also lower their prices. Less efficient companies were driven from the market.

4-demonstrates the effects of competitive pricing because it shows how the company strategically lured customers away from rival producers while still making the highest profit.

Explanation:

:)

5 0
2 years ago
"The following per unit cost information is available: direct materials $10, direct labor $4, variable manufacturing overhead $3
natta225 [31]

Answer:

The target selling price =$45  

Explanation:

The target selling price is the sum of the total unit cost plus 25% of the the unit cost

The target selling price = Total per unit cost + (25% × total unit cost)

The total unit cost is the sum of all the costs involved making the product available to the consumer.

The sum of direct material cost , labour cost variable manufacturing, fixed manufacturing overhead, variable selling and administrative expenses and fixed selling and administrative expenses.

The target selling price would be determined using te steps below:

Step 1: Calculate the unit cost

Total unit cost = 10 + 4 + 3 + 10 + 1 + 8 = 36  

Total unit cost = $36

Step 2: Calculate the target selling price

Target selling price = Unit cost + (25%× unit cost)

The target selling price = 36 + (25% × 36) = $45  

The target selling price =$45  

8 0
3 years ago
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