Answer: b. Set higher prices to the students as their demand is relatively more inelastic.
Explanation:
Price elasticity of demand measures the change in quantity demanded to changes in price levels.
If demand is inelastic, a small change in price has a small effect on quantity demanded. An inelastic demand usually has a coefficient of less than 1.
The elasticity of demand for students and senior citizens are both inelastic but that of the students is greater than that of senior citizens. They are less responsive to price changes when compared with senior citizens.
Answer:
Equivalent units in the month of August using weighted average = 67,000
Explanation:
Using the weighted average method we have,
Opening equivalent units for material = 8,000 as materials are added in the beginning of the process.
Completed and transferred = 69,000
Out of which 8,000 were from opening
Therefore equivalent units = 69,000 - 8,000 = 61,000
Closing inventory = 6,000 again this will also be 100 % complete for materials as the material is added in beginning.
Total equivalent units in the month of August using weighted average = 61,000 + 6,000 = 67,000
To bring in a test group to try out the products before they are released to the general public so that you can work out any issues that the product may contain.
Example of a check. Look at the image I attached.
Answer:
a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%.
b. Journalize the entry to record the accrual of payroll taxes. If an amount box does not require an entry, leave it blank.
- Dr FICA Social Security expense 6,600
- Dr FICA Medicare expense 1,650
- Dr Federal unemployment tax expense 200
- Dr State unemployment tax expense 1,350
- Cr FICA Social Security payable 6,600
- Cr FICA Medicare payable 1,650
- Cr Federal unemployment tax payable 200
- Cr State unemployment tax payable 1,350
Explanation:
payroll taxes should be:
social security $110,000 x 6% = $6,600
Medicare $110,000 x 1.5% = $1,650
federal unemployment $25,000 x 0.8% = $200
state unemployment $25,000 x 5.4% = $1,350
total = $9,800
Both employees and employers must pay equal amounts of FICA taxes (social security and medicare), but only employees pay unemployment taxes.
