Answer:1) how responsive quantity demanded is to changes in income--A 2) income elasticity of demand for butter is 0.11. That means butter is a luxury good---A
Explanation:
1) Income elasticity of demand refers to the responsiveness of the quantity demanded for a certain good to a change in income of consumers who purchase this good.The higher the income elasticity of a good, the greater the consumers' response in their purchasing lifestyle.
The formula for Income elasticity of demands given by
The percent change in quantity demanded divided by the percent change in income.
2) Income elasticity of demand, helps us to identify if a particular good represents a necessity or a luxury.
-when the income elasticity for a good is less than 1(ie from 0-1) we say that the good is a normal good. these goods are also called necessity goods and consumers will purchase them irrespective of the changes in their income eg water, electricity
- when the income elasticity of a good is greater than 1 , we say that the good is a luxury good. eg butter
- An inferior good is one with a negative income elasticity which means rising incomes will lead to a drop in demand.
There are many ways you can pay for your college tuition. First, you can find a part time job. Most colleges are gracious to students, especially working students. So they would usually allow installments on the tuition fee, with some added terms. If not, there would always be university scholarships if you happen to be doing well in your studies. There also is the option of student loans for those students who need help in paying for the tuition.
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Answer:
b. can be calculated by modifying the break-even equation.
Explanation:
As the name implies, target profit can be explained to be the certain amount a business enterprise or a business organisation targets to hit at the end of its sales or at the end of her business dealings.
It can be easily seen in a cash flow planning as it is once modified to approximate cash flow, and also used for revealing expected results to investors and lenders. In all that it is been used for, in the scenario above, it also can be calculated by modifying the break-even equation, and deriving more conservative budgeting packages in business development too.
Adjust the contribution margin per unit and units sold based on an expected sales promotion.
Alter the fixed cost total and the contribution margin per unit for the effects of outsourcing production.
Alter the contribution margin for the effects of changing to a just-in-time production system.
If there is continually a large unfavorable variance between the target and actual profit, it may be necessary to examine the system used to derive the target profit,
Answer:
National Park Tours Co.
Journal Entries
Sr. No Account Debit Credit
1) Cash 75,000 Dr
Beth Worley Capital 75,000 Cr
Invested in capital.
2) Supplies Expense 900Dr
Cash 900 Cr
Bought Supplies
3) Equipment 8000 Dr
Cash 1600 Cr
Accounts Payable 6400 Cr
Bought Equipment.
4) Operating Expenses 6280Dr
Cash 6280 Cr
Spent on Operating Expenses
5) Accounts Receivable 12300Dr
Fees Earned 12300 Cr
Provided Services on Account.
6) Accounts Payable 2700Dr
Cash 2700 Cr
Paid cash for a liability raised previously.
7) Cash 8,150Dr
Accounts Receivable 8,150 Cr
Received Services fees.
8) Supplies Expenses 660Dr
Supplies 660 Cr
Supplies expenses charged.
9) Beth Worley, Drawing 2500Dr
Cash 2500 Cr
Withdrew for personal use.
