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alina1380
1 month ago
6

. Suppose you own a bookstore. You believe that you can sell 40 copies per day of the latest John Grisham novel when the price i

s $35. You consider lowering the price to $25 and believe this will increase the quantity sold to 50 books per day. Compute the price elasticity of demand using the mid-point formula and these data. Select the correct implication from your work.
Business
1 answer:
Scilla [3.2K]1 month ago
7 0

Answer:

PED = 0.67 indicates inelastic demand.

This suggests that reducing the book's price is not advisable.

Explanation:

To calculate price elasticity of demand, we utilize the midpoint formula: {(Q2 - Q1) / [(Q2 + Q1) / 2]} /  {(P2 - P1) / [(P2 + P1) / 2]}

PED is computed as follows: {(50 - 40) / [(50 + 40) / 2]} /  {(25 - 35) / [(25 + 35) / 2]} = [10 / (90 / 2)] /  [-10 / (60 / 2)] = (10 / 45) / (-10 / 30) = 0.222 / -0.333 = 0.67

The value of PED = 0.67 implies that the demand does not respond greatly to price changes.

If you proceed to lower the book's price, the rise in the number of copies sold will not be enough to offset the loss from the reduced price, resulting in financial loss.

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White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermin
Free_Kalibri [3151]

Question not complete

Direct Labour Cost is missing

Direct Labor Cost ----- $50,000.00 $270,000.00

Answer:

a.

Overhead Rate (Cutting Department) = $5.5 per machine hour = $5.5 per machine hour

Overhead Rate (Finishing Department) = $12.2 per labour hour

b. Total Manufacturing Cost = $644

c. Yes

Explanation:

a. To determine the predetermined overhead rate appropriate for each department.

Given

Cutting Department

The Cutting Department calculates its rate based on machine-hours

Manufacturing Overhead Costs = $264,000

Machine Hours = 48,000

Finishing Department

For the Finishing Department, the rate is calculated based on direct labor-hours.

Manufacturing Overhead Costs = $366,000

Direct Labour Cost = $270,000

Overhead Rate (Cutting Department) = Manufacturing Overhead Cost/Machine Hours

Overhead Rate (Cutting Department) = $264,000/48,000

Overhead Rate (Cutting Department) = $5.5 per machine hour

Overhead Rate (Finishing Department) = Manufacturing Overhead Cost/Machine Hours

Overhead Rate (Finishing Department) = $366,000/$270,000

Overhead Rate (Finishing Department) = 1.36

Overhead Rate (Finishing Department) = 136% direct labour cost

b.

The Cutting Department's rate is based on machine-hours

Given

Machine hours = 80 machine hours

Overhead Rate = $5.5 per machine hours ------ This was calculated

The Finishing Department's calculations rely on direct labor-hours.

Given

Direct Labour Cost = 150

Overhead Rate = 136% of labor cost ------ This was deduced

Overhead Applied (Cutting Department) = 80 * 5.5

Overhead Applied = 440

Overhead Applied (Finishing Department) = 136% * 150

Overhead Applied = $204

Total Overhead Applied = $440 + $204

Total = $644

c. Yes

If the business utilizes a company-wide overhead rate linked to direct labor cost and if jobs have increased machine hours paired with lower labor costs, they would incur less overhead expenses.

6 0
1 month ago
Assume Chester Corp. is downsizing the size of their workforce by 20% (to the nearest person) next year from various strategic i
harina [3203]

Answer:

$311,100

Explanation:

Solution

Let's remember the following details:

The assumption is that Chester Corp has reduced its workforce by = %

The estimated cost of exit interviews = 100

Normal separation expenses = $5000

Now,

The total number of employees = 305

The reduction in workforce = 20%

So,

The number of employees being laid off = 305 x 20% = 61 individuals

Thus,

The separation expense per employee = $5000

Cost for exit interviews = $100

Total expense per individual = $5,100

Now,

The overall separation cost = 61 individuals x total separation cost per employee

That is,

= 61 x 5100 = $311,100

3 0
1 month ago
On March 1 a commodity's spot price is $60 and its August futures price is $59. On July 1 the spot price is $64 and the August f
Katen [2907]

Answer:

The answer is $59.50.

Explanation:

The calculations based on the scenario are as follows:

Profit on futures price = After futures price - before futures price

$63.50 - $59

= $4.50

Thus, the effective price that the company pays can be calculated using this formula:

Effective price paid = Spot price in July - Gain on futures price

= $64 - $4.50

= $59.50

6 0
24 days ago
You're in a conference room with Javier and Jim, an assistant director who reports to you. The other three people in the room, i
stepan [3001]

Full question:

As a manager at the headquarters of Leland Enterprises, a transportation firm, you answer to the director, Javier.

Javier is recognized in the workplace for his short temper—quick to express anger and slow to offer compliments. He frequently humiliates individuals in public when he perceives their performance as lacking, which is often. Despite this, upper management appreciates his decisiveness and expertise in business analytics, leading to strong results for the company. They take a hands-off approach concerning his management style. Consequently, employee turnover is notably high as team members find they can either adapt to his leadership or depart without effecting change.

Decision Point: Javier's Goals

In a conference room with Javier and Jim, an assistant director who reports to you, you also have three other colleagues present, including your friend Emily, who report to Jim.

At the meeting's conclusion, Javier asserts, "So that's just how we operate here." When an employee inquires about specifics regarding projection goals, Javier dismisses the question stating, "You all know enough—focus on your tasks and allow me to manage the details. This meeting is adjourned. Now, turn to your neighbor and do our secret GIMME handshake." People fidget, rolling their eyes while doing a goofy handshake reminiscent of middle school.

In your view, how does the organizational culture at Leland Enterprises manifest?

Select the most appropriate options below and click Submit.

Ethics

Innovation

Symbols

Stories

Socialization

Language

Rituals

Answer:

Rituals

Explanation:

The example illustrates corporate rituals, which may be habitual sequences or ceremonies that reinforce the organization’s values, highlighting important goals and the hierarchy within the organization, exemplified by the request to perform the Gimme shake.

5 0
1 month ago
Tony is the sole shareholder of O.K. Oil Corporation. Tony uses O.K's funds to pay his personal expenses and to create Pure Fuel
Scilla [3249]

Answer: C

해체 회사 고리를

Explanation:

A company is expected to operate as a separate legal entity from its owners. In this instance, Tony treats the business and himself as one entity, which results in him being liable for breaching the corporate veil of O.K. Oil Corporation due to the following reasons:

1. Neglecting to preserve the distinct identities of the business entities.

2. Failing to maintain separate identities for the company and its shareholders or owners.

3 0
1 month ago
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