What can you conclude about the price elasticity of demand from each of the following statements? (Is it: perfectly elastic, elastic, unit elastic, inelastic, perfectly inelastic)

a. "The pizza delivery business is very competitive in this town. I'd lose half my customers if I raised the price by as little more than 10%."

b. "I own the only chicken farm in Hong Kong that produces organic free-range eggs. I recently increased my production by 20%, and found that the price that I could sell the eggs at dropped by 10%."

c. My professor has required the use of the Krugman textbook for the class. I have no choice but to buy this book."

d. No matter what the price is, I always spend a total of exactly $100 per month buying coffee beans."

please give me answers with detailed explanations. thank you.

E15-2 (Recording the Issuance of Common and Preferred Stock) Kathleen Battle Corporation was organized on January 1, 2014. It is authorized to issue 10,000 shares of 8%, $100 par value preferred stock, and 500,000 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year.

Jan. 10 Issued 80,000 shares of common stock for cash at $5 per share.

Mar.1 Issued 5,000 shares of preferred stock for cash at $108 per share.

Apr. 1 Issued24, 000shares of common stock for land. The asking price of the land was$90,000; the fair value of the land was $80,000.

May1 Issued 80,000 shares of common stock for cash at $7 per share.      

Aug.1 Issued 10,000 shares of common stock to attorneys in payment of their bill of $50,000 for services rendered in helping the company organizes.

Sept. 1 Issued 10,000 shares of common stock for cash at $9 per share.

Nov.1 Issued 1,000 shares of preferred stock for cash at $112 per share.

Instructions

Prepare the journal entries to record the above transactions

DeLong Corporation was organized on January 1, 2020. It is authorized to issue 10,000 shares of 8%, $100 par value preferred stock, and 500,000 shares of no-par common stock with a stated value of $2 per share. The following stock transactions were completed during the first year.

Wingfoot Co. began operations on July 1, 2019. By the end of its first fiscal year, ended June 30, 2020, Wingfoot had sold 10,000 wingers. Selected data on operations for the year ended June 30, 2020, follow. (Any balance sheet figures are as at June 30, 2020.)

Additional information:

• 1.Each winger requires 2 kg of direct materials, 0.5 machine hours, and one direct labour hour.

• 2.Except for machinery depreciation of $5,000 and a $1,000 miscellaneous fixed cost, all manufacturing overhead is variable.

• 3.Except for $4,000 in advertising expenses, all selling and administrative expenses are variable.

• 4.The tax rate is 40%.

Instructions

Assume that the company uses variable costing and prepare a contribution-method income statement in good form for the year ended June 30, 2020.

Kathleen Battle Corporation was organized on January 1, 2014. It is authorized to issue 10,000 shares of 8%, $100 par value preferred stock, and 500,000 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year

Jan 10. Issued 80,000 shares of common stock for cash at $5 per share

Mar 1, Issued 5,000 shares of preferred stock for cash at $108 per share

April 1 Issued 24,000 shares of common stock for land. The asking price of the land was $90,000, the fair value of the land was $80,000

May 1, Issued 80,000 shares of common stock at $7 per share

Aug 1, Issued 10,000 shares of common stock to attorneys in payment of their bill $50,000 for services rendered in helping the company organize

Sept. 1 Issued 10,000 share of common stock for cash $9 per share

Nov. 1 Issued 1,000 shares of preferred stock for cash $112 per share

Instructions

Prepare journal entries to record the above transaction.

25. A.

1. If fixed costs are $256,000, the unit selling price is $34, and the unit variable costs are $18, what is the break-even sales (units) if fixed costs are reduced by $33,600?

   a. 13,900 units

   b. 20,850 units

   c. 16,680 units

   d. 11,120 units

25. B

1. If sales totaled $665,288 for the year (83,161 units at $8 each) and the planned sales totaled $848,276 (77,116 units at $11 each), the effect of the quantity factor on the change in sales is:

   a. $66,495 increase

   b. $182,988 decrease

   c. $66,495 decrease

   d. $182,988 increase

25. C.

1. A business operated at 100% of capacity during its first month, with the following results:

   Sales (97 units)		$388,000
   Production costs (121 units):
   Direct materials	$52,320
   Direct labor	13,358
   Variable factory overhead	23,377
   Fixed factory overhead	22,265	111,320
   Operating expenses:
   Variable operating expenses	$5,349
   Fixed operating expenses	3,810	9,159

   What is the amount of the income from operations that would be reported on the absorption costing income statement?

   a. $307,450

   b. $387,879

   c. $289,600

   d. $311,260

1. In the 1970s, the United States federal government created a Department of Energy. This is a time when the OPEC (Organization of Petroleum Exporting Countries) cartel first became prominent. Identify how this action might have impacted the three major macroeconomic goals of our economy.

2. Suppose you live in a community of 100 people where everyone is able and seeks to work. If 80 people are over 16 years old and 72 of them are employed, what is the unemployment rate in this community?

3. What are the three major types of unemployment? What are their causes?

4.  What is the business cycle? Explain the four phases of the business cycle.

5. Suppose a consumer buys 10 units of good X and 20 units of good Y every year. The following table lists the prices of goods X and Y in the years 2005-2007. Assume that these two goods constitute the typical market basket. Calculate the price indices for these years with 2005 as the base year. Comment on the inflation picture for these years.

Bond Investment Transactions

Journalize the entries to record the following selected bond investment transactions for Starks Products:

For a compound transaction, if an amount box does not require an entry, leave it blank.

a. Purchased for cash $108,000 of Iceline, Inc. 9% bonds at 100 plus accrued interest of $1,620, paying interest semiannually.

b. Received first semiannual interest payment.

c. Sold $72,000 of the bonds at 103 plus accrued interest of $820.

Stock Investment Transactions

On September 12, 3,700 shares of Aspen Company are acquired at a price of $32.00 per share plus a $185 brokerage commission. On October 15, a $0.80-per-share dividend was received on the Aspen Company stock. On November 10, 1,480.00 shares of the Aspen Company stock were sold for $27 per share less a $74 brokerage commission.

When required, round final answers to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank.

Prepare the journal entries for the original purchase, the dividend, and the sale under the cost method.

. Alpha Ltd has appointed you as a manager in the budgeting department. The company has provided the following information to prepare a cash flow budget for the six months from the 1 January 2021 to 30 June 2021.

1. Alpha Ltd produces only one type of product and the projected selling price of the product is £2 for January and February and after that will be fixed at £3 for the foreseeable future.      
2. For the first three months of the year, 2,000 units will be sold per month. For the following three months, 2,500 units will be sold per month. Sales income is to be received in the month of sale.
3. Insurance costs are £200 every two months. The company will pay for insurance on 1 December 2020.
4. The company is paying 20% of sales of each month as bonus to the employees in the following month. The total sales during December 2020 will be £5,000.
5. Alpha Ltd will pay overhead costs of £2,000 each month.
6. The opening cash balance at 1 January 2021 will be £1,000.
7. The monthly cost of direct material and direct labour is estimated to be £500 and the company will pay them during each month.

viii Fixed costs of production are £100 per month, payable in the month

Chapter 10 Bonds and Other Liabilities problems

Problem 1

The following items are of financial interest to the investors and creditors of Sunlife corporation

                                                                                                Bonds Payable                                    $1,000,000

                                                                                                Accounts Payable                                    100,000

                                                                                                Salaries Payable                                          20,000

                                                                                                Unfunded pension liability                        800,000

                                                                                                Installment Note Payable                          500,000

                                                                                                Unearned ticket revenue                            100,000

                                                                                                Notes Payable                                              80,000

                                                                                                Interest Payable                                           50,000

Also                            The Notes Payable are due in 3 months

                        $50,000 of the principal payment of the installment loan is due to be paid this year.

Required: Prepare the liabilities section of the Balance Sheet (separate current liabilities and long-term liabilities)

Problem 2

Smith Corporation received approval to issue $1,000,000 of 9%, 20 year Bonds.  The Bonds have interest payment dates of September 30^th and March 31^st.  The Bonds are issued at a price of 100 plus accrued interest on May 31^st, 2017. Prepare the journal entries that will be needed on (1) May 31,2017 to record the issuance of the bonds, (2) September 30^th2017 to record the first payment of interest, and December 31, 2017 to record the adjusting entry necessary related to the bonds.

May 31

Sept 30

Dec 31