The marginal revenue of the twentieth unit is $8.00. Thus, option A is correct.
What is marginal revenue?The volume of productivity and also the pricing per unit of an item that should maximize shareholder value are determined by economic metrics such as the costs of manufacturing as well as the contribution margin ratio.
The company produces 19 units for $10, but in order to sell 20 units, the price must be reduced to $9.90.
The initial price that is consumed will be
= 19 units * $10
= 190
The new price that is taken will be
= 20 units * $9. 90
= 198
The change in the price will be
= 198 - 190
= $8
Therefore, option A is the correct option.
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The question is incomplete, the complete question will be:
$8.00
-$.10
$9.90
$198.00
what will happen if you try to upload a feed in merchant center that does not have availability for each product
It will disapprove it if you try to upload a feed in merchant center that does not have availability for each product. Since availability is not an attribute in the product feed.
A merchant is a person who trades in commodities produced by different humans, in particular one that trades with foreign countries. traditionally, a service provider is every person who's involved in business or trade. merchants have operated for as long as industry, trade, and change have existed.
Merchant is a person who engages in purchase, sales, and trade of commodities for earnings. The merchant magnificence is the social sector made of traders.
Merchant Transaction way the purchase by means of a cardholder of goods or offerings from a merchant by means of use of a bank Card.
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on january 1, fashion magazine received $15,000 from subscribers for the annual subscriptions that it recorded in unearned revenue. the issues of the magazine are sent digitally to subscribers monthly. what amount of subscription revenue should the magazine recognize on january 31 when the first issue is sent?
Amount of subscription revenue should the magazine recognize on january 31 when the first issue sent is $1250.
What is unearned revenue?
In accrual accounting, money received for goods or services but not yet earned is referred to as delayed income, unearned revenue, or unearned income. It is recorded as a liability up until delivery is made, at which point it is transformed into revenue in accordance with the revenue recognition principle.
When an expense is incurred, the associated expense item is recognized, and the corresponding amount is subtracted from accrued expenses. Deferred income and accrued expense share many similarities. The difference is that a liability to be covered later is a good or service received from a counterpart, whereas cash is to be paid out in a later period. To clarify, accrued expense represents the money that a company owes to others, whereas deferred revenue represents the money that a company receives in advance and represents the goods and services that a company owes to its customers.
To figure out how much will be made each month:
$15,000/12months
=$1,250.
So $1,250 for January
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In this week’s episode of saving sara, you saw that getting a job promotion doesn’t necessarily create a leader. Both a management approach and a leadership approach were taken by sara to handle a situation. Watch both examples and describe the differences between management and leadership. Then, focus on one leadership trait that sara exhibited. What advice would you give sara to improve on that specific trait?.
Leadership and management square measure 2 necessary parts that a brand new charge nurse should distinguish between to become an honest leader.
Leadership is the capability of motivating coworkers to own a sure-fire outcome in work, whereas management is that the method of organizing and coordinating coworkers (ATI, 2019). One look at the eventualities, a lot of effective approaches on my behalf was leadership because it shows a lot of respect and dignity towards coworkers.
This was seen in the situation wherever the charge nurse had oral communication with the team, deciding the steps to deliver the goods and an honest score. It was apparent that each party was content with the results of the oral communication.
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Why is it critical that a market basket accurately represents average consumer purchases?
The reason it is critical for a market basket to accurately represent the correct customer purchases on average is so that inflation can accurately be calculated.
How is inflation calculated?Inflation refers to the general rise in prices in an economy. This therefore measures the fall in the value of currency and is important when making economic decisions by the government.
As a result, the inflation rate needs to be as accurate as possible. Inflation is calculated by checking the change in price in a market basket of goods purchased by consumers. As a result, it needs to be as accurate as possible to correctly capture the inflation.
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short- and long-run equilibrium ii. if the economy is in short-run macroeconomic equilibrium at e1, it is in a(n):
Short- and long-run equilibrium ii. if the economy is in short-run macroeconomic equilibrium at e1, it is in an inflationary gap.
A macroeconomic concept known as the inflationary gap quantifies the discrepancy between the real gross domestic product (GDP) at the current level and the GDP that would exist if the economy were experiencing full employment.
When demand for goods and services outpaces supply due to elements like higher levels of overall employment, increasing trade activity, or higher government spending, there is an inflationary gap.
In light of this, there may be an inflationary gap if the real GDP exceeds the potential GDP. The inflationary gap is so named because an economy's increased consumption as a result of the relative gain in real GDP eventually drives up prices.
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a retailer has annual sales of $475,000 and an average finished-goods inventory of $18,000. if the retailer sells each unit for an average of $27 and purchases the units for $12, what is its annual inventory turnover?
11.72 will be Its annual inventory turnover.
Inventory Turnover Ratio = (Cost of goods sold)/(Average Inventory)
Following values are given in the question,
Average finished-goods inventory = $18,000
Annual Sales = $475,000
Selling Price per unit = $27
Purchase price of goods per unit = $12
Number of goods sold = Annual Sales/ Selling Price per unit
Number of goods sold = 475000/27
Number of goods sold = 17592 unit
Cost of goods sold = Number of Goods sold*Purchase price of goods per unit
Cost of goods sold = 17592*12
Cost of goods sold = $211,104
Inventory Turnover ratio = (Cost of goods sold)/(Average Inventory)
Inventory Turnover ratio = 211104/18000
Inventory Turnover ratio = 11.72
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in a contractual vertical marketing system, the channel captain often has influence over other channel members due to multiple choice longevity in the industry. social interactions with the community at large. economic power. geographic proximity to the manufacturing plant. a legitimate right to direct them.
In a contractual vertical marketing system, the channel captain often has influence over other channel members due to a legitimate right to direct them.
What is contractual vertical marketing system?A type of vertical marketing system in which unaffiliated businesses at various levels of distribution are linked by contract in order to create economies of scale and increase the impact of sales.Working with a franchise is an instance of a contractual vertical marketing structure. A license must be bought in order to open a franchise location. However, the owner is required to adhere to all the requirements, norms, and procedures of a franchiser.Corporate, contractual, and administrative are the three types of vertical marketing systems.A retailer cooperative, in which a number of merchants purchase from a wholesaler they both own, is one sort of contractual VMS. Franchise organizations, in which a manufacturer grants a distributor a license to distribute its goods, are another sort of contractual VMS.To learn more about contractual vertical marketing system refer to:
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merchandise subject to terms 2/10, n/30, fob shipping point, is sold on account to a customer for $25,000. what is the amount of the sales discount allowable? a.$260 b.$150 c.$500 d.$460
The maximum sales discount permitted is $500 when merchandise subject to terms 2/10, n/30, and fob shipment point is sold to a client on account for $25,000.
What do you mean by sales?A sale is an arrangement in which a seller trades money for the sale of tangible or intangible goods, assets, or services between a buyer and a seller. In a sale, there are usually two or more parties involved. One can think of a sale or a contract between two or more parties, such as the buyer and seller.
Why are sales such a big deal?Sales have a big impact on how customers become loyal and how much trust they have in brands. Trust and loyalty are the main factors influencing a customer's choice.
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which of the following is a difference between monopoly and monopolistic competition? profits maximized where marginal cost equals marginal revenue. downward sloping demand curve. marginal revenue below price. zero long run economic profit.
Profits maximized where marginal cost equals marginal revenue is a difference between monopoly and monopolistic competition. Comparing the anticipated or predicted costs and benefits (or opportunities) connected with a project choice.
In monopoly order to assess whether it makes sense from a business standpoint is known as a cost-benefit analysis. For instance: The cost to build a new product will be $100,000, and sales of $100,000 per unit are anticipated (unit price = 2). Therefore, 200,000 advantages are sold. The straightforward CBA calculation for this project is 200,000 in financial benefit minus 100,000 in cost, which results in a net benefit of 100,000.
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on january 1, a company issues bonds dated january 1 with a par value of $370,000. the bonds mature in 5 years. the contract rate is 11%, and interest is paid semiannually on june 30 and december 31. the market rate is 10% and the bonds are sold for $384,280. the journal entry to record the first interest payment using straight-line amortization is: (rounded to the nearest dollar.)
The journal entry is shown below:
Cash Dr $370,000
Discount on bond payable Dr $14,280
To Bond payable $384,280
(Being the issuance of the bond is recorded)
What is journal entries?
A journal entry is the act of recording any transaction, whether one that is economic or not. An accounting diary that displays the debit and credit balances of a corporation lists transactions. Multiple recordings, each of which is either a debit or a credit, may be included in the journal entry.
A journal entry is a record of a business's financial transactions kept in its accounting books. An accurate date, the sums to be debited and credited, a description of the transaction, and a special reference number are all components of a properly documented journal entry.
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in the past, an example of real estate market success in the midst of wide-spread real estate market failure was:
Apartments during the Great Recession served as an example of the real estate market thriving amid widespread failure in the past.
A recession is a sizable, pervasive, and protracted decline in economic Recession activity. According to a common rule of thumb, a recession is defined as two consecutive quarters of declining gross domestic product (GDP). Declines in economic output, consumer demand, and employment are typical effects of recessions.
A recession is defined by economists at the National Bureau of Recession Economic Research (NBER) as an economic contraction that market begins at the height of the expansion that came before it and ends at the lowest point of the subsequent downturn.
The NBER uses a variety of indicators to determine the beginning and market end of a U.S. recession, including nonfarm payrolls, industrial production, and retail sales.
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suppose a rallying stock market causes aggregate expenditures by consumers to increase by $200. if the mps is 0.2, what is the change in real gdp associated with this positive shock to the economy?
The current market value of all the finished goods and services in the economy is known as aggregate expenditure.
How do you calculate aggregate expenditure?The formula for total spending is AE = C + I + G + NX. The equation is written as follows: Total expenditure = sum of household consumption (C), investments (I), government spending (G), and net exports (NE).Consumption (C): The total annual household consumption.Investment (I): Capital expenditures that are budgeted.Federal, state, and municipal government spending is indicated by the letter "G," or "government expenditure." Infrastructure or transfers are examples of government spending that raise the total amount spent by the economy.Net exports (NX) are the sum of all exports minus all imports.Given:
The initial change in total spending was $200; the MPS was 0.20. Find the multiplier for expenses. Multiplier for expenses =1/MPS=1/(0.2)=5. Initial change in aggregate expenditures x expenditure multiplier ($200 x 5) equals $1000 in terms of the overall impact on real GDP.To Learn more About aggregate expenditure refer to :
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local petroleum distributors (lpd) sells gas and diesel fuel to 72 independent gas stations and convenience stores. receiving accurate data on the fuel needs of its customers is a critical operational concern. lpd installed sensors in the fuel storage tanks owned by each customer. at 11 pm each evening, the sensors send fuel data electronically to lpd. lpd receives the data, and a computer enters each record. the data are analyzed, and the analysis determines which retailers require a fuel shipment in the next three days. the electronic system has increased operational efficiency as shipments can be better coordinated, and retailers are no longer required to measure the fuel level and report manually. lpd's use of a computer to enter the data reported by the sensors is an example of
Ltd's use of a computer to enter the data reported by the sensors is an example of Robotic process automation
A sensor is a tool that produces an output sign for the motive of sensing a bodily phenomenon. In the broadest definition, a sensor is a device, module, gadget, or subsystem that detects occasions or changes in its environment and sends the data to different electronics, regularly a laptop processor. Sensors are constantly used with other electronics. Sensors are utilized in regular objects along with contact-sensitive elevator buttons (tactile sensors) and lamps that dim or brighten with the aid of touching the bottom, and in innumerable packages of which the majority are never conscious. With advances in micromachinery and smooth-to-use microcontroller platforms, the uses of sensors have extended past the traditional fields of temperature, pressure, and float measurement,[1] as an example into MARG sensors.
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9) which of the following would cause prices to fall and output to rise in the short run? a) a temporary decline in the price of oil, that temporarily increases total factor productivity. b) a hurricane in the gulf of mexico that temporarily reduces productivity. c) household wealth increases. d) a recession in europe that causes a decline in net exports.
Option a.) a temporary decline in the price of oil is the correct answer, resulting in a temporary increase in total factor productivity. This is because a short-term shift in aggregate supply to the right will cause prices to fall and aggregate supply to increase in the short term. The curve rises because there is a direct relationship between total supply and rising price levels.
This is also known as right shift of total supply. Aggregate demand refers to the aggregate demand made by individuals in the economy for goods and services produced in the economy. In Keynesian economics, the intersection of aggregate demand and aggregate supply determines real GDP.
As the aggregate supply curve shifts to the right, producers supply more real GDP at each price level. As the AS curve shifts to the left, producers supply less amount of real GDP at each price level.
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which of the following may be the cause of an unfavorable staff time variance? a.staff inefficiency b.insufficient staff training c.overscheduling d.all of these choices are correct.
nash company estimates it bad debt expense to be 7% of gross accounts receivable. determine its bad debt expense
nash company estimates it bad debt expense to be 7% of gross accounts receivable. It's bad debt expense is $362200.
Debt is an responsibility that calls for one birthday party, the debtor, to pay cash or different agreed-upon cost to every other celebration, the creditor. Debt is a deferred charge, or collection of payments, which differentiates it from an immediate purchase. The debt can be owed by way of sovereign kingdom or us of a, nearby government, employer, or an man or woman. industrial debt is typically challenge to contractual phrases concerning the amount and timing of payments of foremost and interest.[1] Loans, bonds, notes, and mortgages are all varieties of debt. In economic accounting, debt is a sort of financial transaction, as distinct from equity.
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2. (1pt) what is the value of an infinite series of $50 semiannual payments growing at a rate of 4% every six months and with a discount rate of 10% apr compounded semiannually? how would your answer change if the growth rate was 5% every six months?
It usually multiplies by 100 to show the difference in GDP between one period and the next. This difference is expressed as a percentage of GDP from the previous period.
The value of the infinite series of payments is calculated as follows: Value = PMT/(r - g) Value = 50/(0.10 - 0.05) Value = 50/0.05 Value = $1,000 The value of the infinite series of payments with a growth rate of 5% Growth rate every six months, g = 5% = 0.05 APR = 20% compounded semiannually s = Number of semi-annual periods per year = 2
How is the perpetuity growth rate calculated?g is the increase in cash flows over time. The terminal value in year n (for instance, year 5) is the product of the growth rate and the free cash flow from year 5 multiplied by 1 divided by the WACC (w) – growth rate (g).
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the ftc controls on product comparisons: group of answer choices are very stringent. are a high regulatory priority. have changed dramatically with private enforcement. no longer exist.
The FTC controls on product comparisons are a high regulatory priority. The FTC is responsible for enforcing federal consumer protection laws that prohibit fraud, dishonesty, and unfair business practises.
In addition, the Commission enforces federal antitrust rules that ban anticompetitive acquisitions and other commercial practises that may result in higher prices, fewer choices, or less innovation. As a consumer or business owner, you may be more familiar with the federal consumer Trade Commission's activities than you realise. The FTC works with issues that affect every American's economic life. We accomplish this in part by enforcing antitrust laws. The fuel that propels America's free-market system is competition.
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g the canning company has been hard hit by increased competition. analysts predict that earnings (and dividends) will decline at a rate of 5% annually into the foreseeable future. if canning's last dividend (d0) was $2.00, and investors' required rate of return is 15%, what will be canning's stock price in 3 years?
The dividend growth model is the one that predicts the price of a stock that pays a perpetual dividend and grows at a constant rate. It is calculated by dividing the expected dividend by the total return less the growth rate.
P3: Current price*(1+Growth rate)3 =8.63636364*(1-0.05)3 =$7.41 (approximate) =D1/(Required return-Growth rate) =(2*(1-0.05)/(0.17-(0.05) =1.9/0.22
What is the model for dividend growth?A mathematical formula called the dividend growth model can be used by investors to figure out what a company's stock is worth based on its current dividend and how much it expects to grow in the future.
The Gordon growth model uses the assumption that a company's payments to its common equity shareholders will always increase to determine a company's stock price.The required rate of return (RoR), dividends per share (DPS), and dividend growth rate are the three primary inputs to the model.
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operations management is applicable: group of answer choices to all firms, whether manufacturing or service. mostly to the manufacturing sector. to services exclusively. to the manufacturing sector exclusively. mostly to the service sector.
Operations management is applicable to all firms, whether manufacturing and service.
What is management?Management refers to the management of an organization, such as a corporation, non-profit organization, or government agency.This is the art and science of managing company resources. Management includes the activities of setting an organization's strategy and coordinating people's efforts to achieve goals using available resources such as financial, natural, technological and human resources. His two concepts of "running a business" and "changing a business" are managed to distinguish between the continuous provision of goods and services and the adaptation of goods and services to the changing needs of customers. There are two concepts used. See trends. The term "administrators" can also refer to people who lead an organization, i.e. management.To learn more about management from the given link :
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franco is considered to be tech-savvy by his friends. he is unafraid to take risks when it comes to trying new products and is always the first in his group to get the latest gizmo. what type of product adopter is franco?
Franco is considered to be tech savvy. He is unafraid to take risks when it comes to trying new products and is always the first in his group to get the latest gizmo. Franco is a innovator type of product adopter.
To be tech savvy is to be comfortable and familiar with using technology. This can mean different things for different people, but generally it means being able to use tech products for tasks such as communication, research, problem solving, and entertainment.
For some people, being tech savvy also means having some level of understanding of how technology works and being able to take risk when issues may arise.
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48. which of the following is the best argument for sharia for his position that he is entitled to the five extra $100.00 payments he is claiming? a. the objective standard of contract interpretation. b. the reasonable expectations of the parties. c. modification of the contract due to subsequent conduct. d. the parol evidence rule.
The modification of the contract due to subsequent conduct is the best argument for sharia for his position that he is entitled to the five extra $100.00 payments he is claiming
A contract modification is any change, in part or whole, to a legally binding agreement between two or more parties. Any contract can be amended before or after the agreement is signed, but all parties must agree to the changes. The changes are null and void if any party does not agree to them.
Contract modifications are classified as unilateral or bilateral.
Unilateral modifications are usually used to make administrative changes, issue change orders, make changes authorized by clauses other than the Changes clause, and issue termination notices.
Both the contracting officer and the contractor sign bilateral modifications (supplemental agreements). Bilateral changes can add new work or revise existing terms, and they almost always have cost implications, either upward or downward.
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which of the following about inflation is true? group of answer choices high rates of inflation are usually associated with wide year-to-year changes in inflation. high rates of inflation are usually associated only with very large countries such as the united states. high rates of inflation are usually associated only with smaller countries such as costa rica. high rates of inflation will generally improve the economic efficiency of an economy.
The statement that is true and reflects true facts about inflation is that high rates of inflation are usually associated with wide year-to-year changes in inflation.
In simple terms, downward pressure on the inflation rate is directly proportional to the growth in the rate of economic means more goods can be bought with the money. High and volatile inflation rates would create uncertainties about the formation of economic agents' future spending and income decisions. Inflation also causes companies to go into loss and thus unemployment increases during this time and thus economic growth spirals downwards.
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which statement about the official nhc track and intensity forecasts is correct? a. errors in forecasting track and intensity are generally greater for forecast times farther in the future b. errors in forecasting hurricane intensity have improved faster than errors in forecasting tracks c. the track errors for the 24 hour forecast are about the same as the errors for the 120 hr forecast d. the intensity errors for the 24 hour forecast are about the same as the errors for the 120 hr forecast
The accurate statement is that predicted times further in the future tend to have bigger forecast track and intensity mistakes.
What is intensity and example?She felt uneasy as a result of his intense gaze into her eyes. This was too intense for a first date. The degree, quantity, or magnitude of something is its intensity. Examples include flame, emotions, weather, work, and passion. The word "intensity" is occasionally linked to fervor, fire, and violence.
What is intensity of an object?By multiplying the energy density at a given location in space by the speed of the energy as it moves, one can calculate intensity. The units of power are split by the resulting vector's size (i.e., surface power density).
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your research group conducted a bi-variate correlation analysis in spss using our auto concepts study and the results are attached to this question. based on this correlation analysis examining these lifestyles and the desirability for the 5 seat economy gasoline automobile, which lifestyle(s) possess a strong or very strong relationship to the desirability of this vehicle and therefore would be the best segment to market this vehicle? (hint: look for lifestyle(s) with a pearson correlation coefficient that range between .60 and 1.00!)
Correlation and Regression area unit the 2 variable distribution-based analyses. A variable distribution is termed multiple variables distribution.
Correlation is represented because the analysis permits the U.S.A. to understand the connection between 2 variables, 'x' and 'y' or the absence of it. On the opposite hand, the multivariate analysis predicts worth|the worth} of the variable supported by the familiar value of the experimental variable, presumptuous that there's a median relation between 2 or additional variables.
The term correlation may be a combination of 2 words, 'Co' (together), and the relation between 2 quantities. Correlation is once it's discovered that an amendment in an exceedingly unit in one variable is retaliated by the same amendment in another variable, i.e., direct or indirect, at the time of study of 2 variables.
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in companies that do not use a self-imposed budgeting process, profit targets are generally set by blank . multiple choice question. lower-level managers the board of directors employees top managers
Top managers typically set profit targets in organizations without a self-imposed budgeting mechanism.
What is Self-imposed budgeting:
a budgeting technique where managers create their own budgets. The manager's superior then reviews these budgets; any disagreements are then settled amicably.
A budget is a comprehensive quantitative plan for gathering and using funds and other resources over a predetermined period of time.Budgeting is the process of creating a plan of action.Budgetary control refers to using budgets to manage an organization's operations.Budget projections made by line managers are frequently more accurate than projections made by top managers. When people help define their own goals rather than having them imposed on them, motivation is typically higher. Resentment may develop if a budget is imposed by upper levels of management with minimal support from personnel and managers at lower levels. This may occur, in example, when a management receives criticism or punishment for a budget issue that they were not involved in creating.
A self-imposed restriction is a boundary that the individual sets for themselves as a kind of self-defense. These kinds of restrictions are merely what we decide to consider the limit rather than actual breaking points. When faced with a crisis, people frequently learn that they are far stronger and more resilient than they had thought.
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you purchase a treasury-bond futures contract with an initial margin requirement of 15% and a futures price of $115,250. the contract is traded on a $100,000 underlying par value bond. if the futures price falls to $108,200, what will be the percentage loss on your position? (input the value as positive value. do not round intermediate calculations. round your answer to 2 decimal places.)
The amount of loss on any commodity expressed as a percentage is referred to as the loss percentage. Additionally known as percentage loss.
What is percentage loss?When a loss is expressed or calculated as a percentage, it is referred to as an OSS percentage. The loss percentage formula is the ratio of the loss incurred to the cost price multiplied by 100 because the percentage loss is the percent of loss in terms of the actual cost price.Calculation of your position's percentage loss
Given that,
Initial margin requirement = 15%
Futures price = $115,250
Underlying par value bond = $100,000
If the futures price falls to $108,200
Margin = Initial margin requirement × Futures price
= 0.15 × 115,250 = 17,287.5 = 17288
Loss = Futures price - Decreased future prices
= $115,250 - $108,200
=$7050.
Total percentage of loss = (Loss ÷ Margin) × 100
= ($7050÷ $17288) × 100
= 40.7797.
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apple computer, inc., is a multinational corporation that creates consumer electronics, personal computers, computer software, and commercial servers. apple's core product lines are the iphone smart phone, ipad tablet computer, ipod portable media players, and macintosh computer line. apples success is largely attributed to .
Apple's marketing strategy has remained consistent, keeping the language and visuals simple. The majority of the marketing does not include items like feature lists, prices, or pricy special effects.
A worldwide company called Apple Computer, Inc. distributes digital media content as well as produces consumer products, personal computers, servers, and computer software. On April 1, 1976, Steve Jobs, Steve Wozniak, and Ronald Wayne founded Apple Computer Co. Apple Computer, which produced the Apple II, Macintosh, and Power Mac brands of personal computers for more than three decades, struggled with sluggish sales and a small market share in the 1990s. Apple became a market leader in consumer electronics and media sales with the launch of the popular iPod music player in 2001 and the iTunes Music Store in 2003. By market capitalization as of June 30, 2015, Apple was the biggest publicly traded company in the entire globe.
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the price elasticity of supply measures how responsive group of answer choices equilibrium price is to equilibrium quantity. sellers are to a change in buyers' income. sellers are to a change in price. consumers are to the number of substitutes.
Elasticity of supply measures how responsive: sellers are to a change in price.
Definition of Supply Elasticity and its LawElasticity of supply is a term in microeconomics that interprets the influence of large or small perceptions of changes in the quantity of goods offered due to price changes.
Based on economic theory, in the law of supply and demand, the supply of an item or service will increase if the price increases. And vice versa, the supply of an item or service decreases when the price drops.
Thus, in order to measure such a change, we need the concept of elasticity of supply that can measure the level of quantity supplied in response to a change in price.
Types of Elasticity of SupplyTypes of Elasticity of Supply- Perfectly Inelastic Supply
A good or service has a perfectly inelastic supply if the quantity supplied at any price. The elasticity of supply as such is zero, meaning that there is no elasticity.
For example, this type of elasticity is the supply of exclusive items such as the Mona Lisa painting. Whatever the price offered, the demand for the supply of these goods will not increase.
- Relatively Less-Elastic Supply
When the change in supply is relatively small compared to the change in price, we can say that the product has a relatively less elastic supply. In this case, the price elasticity of supply is assumed to be less than 1.
- Relatively Greater-Elastic Supply
If the change in supply is relatively more than the change in price, we assume that the product has a relatively more elastic supply. This means that the price elasticity of supply is greater than 1.
- Unitary Elastic
For a product with a unit elasticity of supply, the change in the quantity supplied of a product is exactly the same as the change in its price. In other words, changes in price and supply of goods or services are proportional to each other. That means, the value of the price elasticity of supply in such a case is equal to 1.
- Perfectly Elastic Supply
A good or service with perfectly elastic supply has infinite elasticity. In such a case, the supply becomes zero.
This type of elastic supply reflects the fact that suppliers of such a commodity are willing to supply some of the product at a higher price. In a perfectly elastic supply curve, the straight line is parallel to the quantity or quantity of the product.
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peking palace company reported the following: standard quantity per unit 3 lbs. standard price per pound $2.75 actual pounds used 15,000 lbs. actual price per pound $2.90 number of units produced 5,070 what is the direct materials quantity variance? a.$609.00 unfavorable b.$577.50 unfavorable c.$(577.50) favorable d.$(609.00) favorable
Option c. $577.50 favourable is the correct answer. The direct material quantity variance is $577.50 favourable
Standard quantity per unit 3 lbs
Standard price per pound = $2.75
Actual pounds used = 15,000 lbs
Actual price per pound = $2.90
Number of units produced = 5,070
Now,
The direct materials quantity variance is given as;
= | ( Actual quantity - Standard quantity ) | × Standard price
= ( 15,000 lbs - {Standard quantity per unit × units produced}) × $2.75
= ( 15,000 lbs - { 3 × 5,070}) × $2.75
= | ( 15,000 lbs - 15,210 ) | × $2.75
= $577.5
Since,
The standard quantity is higher than the actual quantity
thus,
$577.5 favourable
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