The manager of a chain of fast-food restaurants has noticed that the number of breakfast customers has fallen by 50 percent in t

Answer:

The urgency or possibility of postponement results in an inelastic demand for ice melt by customers.

Explanation:

Demand elasticity indicates how much the demand for a product changes in response to a price shift. The formula is % change in demand / % change in price

Factors that influence the price elasticity of demand include the type of product, income level, availability of substitutes, time frame, urgency or potential for delay, and proportion of total spending.

Inelastic demand occurs when changes in demand are less proportional relative to price changes. % change in demand < % change in price

Case 'Customer urgently requires ice melt to commute to work': This situation reflects inelastic demand, meaning demand does not significantly change with price alterations (he will purchase it even at a higher cost). This is due to the pressing nature of the demand and limited possibilities for postponing it.

Answer:

a. $37,560

Explanation:

The ending cash balance of $40,000 = Cash at start of month $52,000 + cash inflows during June of $532,160 - cash outflows of $581,720 +  New borrowing

⇔ $40,000 = $2,440 + new borrowing

⇔ New borrowing becomes  $40,000 - $2,440 = $37,560

To maintain a cash balance of $40,000, Skot must borrow $37,560 starting with $52,000.

Response:

The right answer is C

Explanation:

To find break-even sales, we use the formula:

Contribution margin ratio = Fixed Cost / Break-even Sales

where

Contribution margin ratio = 1 - Variable costs of 80%

= 20%

The fixed cost amounts to $840

30% = $840 / Break-even Sales

Break-even Sales = $840 / 20%

= $4,200

To find actual sales:

Actual Sales = (Fixed Cost + Target Profit) /  Contribution margin ratio

= ($840 + $6,600) / 20%

= $7,440 / 0.2

= $37,200

To calculate the margin of safety:

Margin of Safety = Actual Sales - Break-even Sales

= $37,200 - $4,200

= $33,000

Answer:

Financial manager.

Explanation:

The role of financial managers involves maintaining the financial stability of an organization. They are responsible for creating financial statements, overseeing investment strategies, and formulating plans alongside data evaluations aimed at achieving the organization’s long-term financial objectives. Keisha Hunter manages everyday financial data to ensure her employer has sufficient funds for operations and assesses the necessity and timing for opening a second distribution location.

Answer:

Using the respective methods: Ending Inventory // COGS

W/A      2,585.75  //  10,549.25

FIFO     2,620     //    10,515

LIFO     2,539    //     10,596

Explanation:

Sales: 102 units

Sept. 1 Inventory         12 units $100  $  1,200

Sept. 12 Purchases    45 units $103  $  4,635

Sept. 19 Purchases    50 units $104  $  5,200

Sept. 26 Purchases   20 units $105  $  2,100

Available for sale      127 units           $ 13, 135

Ending Inventory     127 - 102 = 25 units

COGS is calculated by taking the cost of goods minus the units left in ending inventory.

Weighted average:

$13,135 / 127 units = 103.42519685 = 103.43 cost per unit

Ending Inventory: 25 units x $ 103.43 = $ 2,585.75

COGS: 13,135 - 2,585.75 = 10,549.25

FIFO

First sold, last remaining items in inventory

20 x 105 = 2,100 September 26th

 5 x 104 =    520 September 19th

Remaining inventory      2,620

COGS 13,135  -  2,620 = 10,515

LIFO

Last sold, first remaining in inventory