Answer:
Option (b) is correct.
Explanation:
Given that,
Initial price of good A = $50
Initial quantity demanded of good A = 500 units
New price of good A = $70
New quantity demanded of good A = 400 units
Average quantity demanded:
= (New + Initial) ÷ 2
= (400 + 500) ÷ 2
= 450 units
Change in quantity demanded:
= New - Initial
= 400 units - 500 units
= -100 units
Average price level:
= (New + Initial) ÷ 2
= (70 + 50) ÷ 2
= $60
Change in price level:
= New - Initial
= $70 - $50
= $20
Therefore, the price elasticity of demand for good A is as follows:
= 
= 
= 
= -0.67
Total revenue before price increase:
= quantity demanded of good A × price of good A
= 500 units × $50
= $25,000
Total revenue after price increase:
= quantity demanded of good A × price of good A
= 400 units × $70
= $28,000
Therefore, there is an increase in total revenue with increase in the price level.
Answer:
$163
Explanation:
The accounting standard for Inventory under IFRS IAS 2 requires that inventory be recognized at cost which includes all the cost incurred to bring the item of inventory to a state or place where the item of inventory becomes available for sale.
These costs includes cost of purchase, freight, Insurance cost during transit etc.
Subsequently, inventory is to be carried at the lower of cost or net realizable value. The net realizable value is the difference between the cost and cost to sell.
Given;
Surgical Equipment Surgical Supplies Rehab Equipment Rehab Supplies Selling price $ 265 $ 132 $ 352 $ 159
Cost $ 163 $ 100 $ 252 $ 159
Costs to sell $ 26 $ 11 $ 32 $ 7
Net realizable $ 239 $ 121 $ 322 $ 152
Applying the lower of cost or net realizable value rule, the inventory of surgical equipment would be valued at
= $163
Answer:
Option a ($325,203) is the right response.
Explanation:
The given values are:
Required Lump sum amount,
= $2,000,000
Future value of an annuity,
= 6.15
Now,
As we know,
The required amount of annual deposit will be:
= 
On substituting the given values, we get
= 
= 
i.e.,
=
($)
Answer: The answer is as follows:
Explanation:
The classification of items are as follows:
Accounts receivable - Asset
Long-term debt - Liability
Merchandise inventory - Asset
Prepaid expenses - Asset
Accrued expenses payable - Liability
Equipment - Asset
Notes payable - Liability
Retained earnings - Stockholders' Equity
Land - Asset
Accounts payable - Liability
Common Stock - Stockholders' Equity
Supplies - Asset