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larisa [96]
2 years ago
15

Freeze Ice Cream Shop sells its specialty shakes for $3.50 each. In the summer months, the shop typically sells 200 shakes a day

. The shop's owner thinks if he reduces the price to $3 he will increase sales significantly. However, when he reduced the price, he only sold about 15 more shakes per day. This represents demand that is :___________
Business
1 answer:
mamaluj [8]2 years ago
5 0

As a result of the demand increasing only slightly compared to the reduction in price, the demand must be <u>inelastic</u>.

<h3>Why is the demand inelastic?</h3><h3 />

The demand is considered to be inelastic if the price elasticity is less than 1.

The price elasticity is:

= (%Change in quantity/% Change in price)

Solving gives:

= 15 / 200 ÷ 0.50 / 3.50

= -0.525

In conclusion, the demand for the shakes is inelastic.

Find out more on inelastic demand at brainly.com/question/1899986.

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Jenna Parker owns and manages her single member LLC which provides a wide variety of financial services to her clients. She is m
Julli [10]

Answer:

Option ( b ) $57,000

Explanation:

Data provided in the question:

Net income = $300,000

W-2 wages = $120,000

Assets with unadjusted basis = $75,000

Taxable income before the QBI deduction = $285,000

Now,

The QBI deduction for 2019 will be given as 20% of the qualified income i.e the taxable income before the QBI deduction

Therefore,

The QBI deduction for 2019 = 20% of $285,000

= 0.20 × $285,000

= $57,000

Hence,

Option ( b ) $57,000

5 0
2 years ago
Assume that you are on the financial staff of Vanderheiden Inc., and you have collected the following data: The yield on the com
Katyanochek1 [597]

Answer:

WACC = 7.48%

Explanation:

We can calculate the Firm's WACC by using Excel.

Let's assume this is our Excel Blank Sheet.

          A                    B                                  C                    D

1   Particulars        Rate                             Weight          Weighted rate

2   Debt           = 7.75%(1 - 40%)                 0.45               =B2×C2

                        = 4.65%

3   Equity         = (0.65/(19 × (1 - 10%)))+6%

                        = 9.80%                               0.55             = B3×C3

4                     WACC                                   =SUM(D2:D3)

<h3>Output:</h3>

          A                    B                  C                    D

1   Particulars        Rate              Weight          Weighted rate

2   Debt            = 4.65%             45%               2.09%

3   Equity          = 9.80%             55%               5.39%

4                     WACC                                        7.48%

4 0
3 years ago
Extremely low-incidence studies, such as trying to survey the automobile buyer characteristics of astronauts are usually not fea
Nina [5.8K]

Answer:

The correct answer is D

Explanation:

Feasibility analysis is the analysis which is used in order to determine or state the viability of the project like ensure the project is legal and economically justifiable and technically feasible.

In short, it states that the project is worth or not the investment. So, when the studies indicate the low incidence, then the firm is concerned regarding the feasibility of the project, that it would probably determine or state whether or not the questions could be answered.

7 0
3 years ago
Cash dividends of $83,126 were declared during the year. Cash dividends payable were $9,151 at the beginning of the year and $15
morpeh [17]

Answer:

option (b) $76,642

Explanation:

Data provided in the question:

Cash dividends declared = $83,126

Cash dividends payable at the beginning of the year = $9,151

Cash dividends payable at the end of the year = $15,635

Now,

Cash payment of dividends

= Cash dividends declared + Beginning cash dividends payable - Ending cash dividends payable

= $83,126 + $9,151 - $15,635

= $76,642

Hence,

the answer is option (b) $76,642

7 0
3 years ago
Determine whether you believe that the single-index capm should or should not be reject. explain why or why not
Arturiano [62]
It should not be rejected. While the SMB and HML may prove superior to the single index model, they are not yet practical, even for professional investors.


4 0
3 years ago
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