U.S. Products operates two divisions with the following sales and expense information for the month of May: North Division: Sale

Elysha's debt-to-income ratio is considered good.

Answer:

a. -1.25

b. -1.25

Explanation:

Price elasticity measures how demand varies with price fluctuations.

The formula is:

= % change in Quantity / % change in Price

a. If the price moves from $1.00 to $1.50, the elasticity of demand will be:

% change in Quantity calculated using the midpoint method;

% Change in Price calculated with the midpoint formula

= -0.5/0.4

=-1.25

b. If the price decreases from $1.50 to $1.00, the elasticity of demand is:

% change in Quantity calculated using the midpoint formula;

% Change in Price calculated using the midpoint formula

= 0.5/-0.4

= -1.25

Answer:

The bond discount at issuance is calculated as follows: $846,000 - ($846,000/100 *98)

The bond discount upon issuance is $846,000 minus $829,080

Thus, the bond discount at issuance equals $16,920

Bond Payable = $846,000

The un-amortized bond discount calculates to $16,920 - $9,840

This gives an un-amortized bond discount of $7,080

The redemption value of the bond is determined by 102/100 * $846,000

Thus, the redemption value of the bond is $ 862,920

Finally, the loss on bond retirement is given by the difference between the redemption value and (Bond Payable - Un-amortized bond discount)

Loss on retirement of the bond = $862,920 - ($846,000 - $7,080)

The loss on retirement of the bond calculates to $862,920 - $838,920

This results in a loss of $24,000

Response:

Initial investment of $700

Interest rate     9%

Duration       6 years

Annual interest: (700x0.09)    =63

Total interest after the loan term: (63x6) = 378

$8,400 The calculation for the annual financial benefit (loss) for the organization is detailed below: Particulars     Make                             Buy Direct material           $53,600 (8,000 units × $6.70) Direct labor               $64,800 (8,000 units × $8.10) Variable manufacturing overhead $8,800  (8,000 units × $1.10) Supervisor's salary $16,000  (8,000 units × $2) Fixed manufacturing overhead $2,000   Opportunity cost $16,000   Purchase cost                                                        $169,600  (8000 × $21.20) Total relevant cost       $161,200                              $169,600 Financial (loss) is = $161,200 - $169,600 = -$8,400 We simply compared the make and buy costs and found that purchasing incurs a higher cost than manufacturing, leading to an excess expense of $8,400 if the external supplier is chosen.