1:A brand of dress shoes was put on sale for 20% off. This led to an increase of sale by 15%. The price elasticity of demand for this product is

2:

The concept of cross-price elasticity is used to examine the responsiveness of demand

3:

When the cross-price elasticity EPX = 3

4:

With elastic demand, a price increase will

5:

A direct relation between the price of one product and the demand for another holds for all

6:

According to the law of diminishing marginal utility

e) Suppose that the video streaming service is charging the price that maximizes its total revenue, but the city government imposes an excise tax on videos that results in the price of videos rising to $3.50. As a result, the demand for movies increases by 20 at each price.

g) Given the circumstances in (e), what is the cross elasticity of movies for videos? What does this say about the relationship between the two products? Round your answer to 2 decimal places.

Elasticity:    .

h) Referring to the original data in the table given below, assume now that the average weekly earnings of the townspeople rise from $700 to $800, with the result that the demand for movies increases by 10 percent. If the price being charged is $6, what is the income elasticity of demand? What does this suggest about the product, movies? Round your answer to 2 decimal places.

Elasticity:   .

Problem 19-01

Management believes it can sell a new product for $8.50. The fixed costs of production are estimated to be $5,500, and the variable costs are $3.50 a unit.

1. Complete the following table at the given levels of output and the relationships between quantity and fixed costs, quantity and variable costs, and quantity and total costs. Round your answers to the nearest dollar. Enter zero if necessary. Use a minus sign to enter losses, if any.

   Quantity		Total Revenue	Variable Costs	Fixed Costs	Total Costs	Profits (Losses)
   0		$	$	$	$	$
   500		$	$	$	$	$
   1,000		$	$	$	$	$
   1,500		$	$	$	$	$
   2,000		$	$	$	$	$
   2,500		$	$	$	$	$
   3,000		$	$	$	$	$

2. Determine the break-even level using the above table and use the Exhibit 19.5 to confirm the break-even level of output. Round your answers for the break-even level to the nearest whole number. Round your answers for the fixed costs, variable costs, total costs, and profits (losses) to the nearest dollar. Enter zero if necessary. Use a minus sign to enter losses, if any.

   Quantity	Total Revenue	Variable Costs	Fixed Costs	Total Costs	Profits (Losses)
   	$	$	$	$	$

3. What would happen to the total revenue schedule, the total cost schedule, and the break-even level of output if management determined that fixed costs would be $7,500 instead of $5,500? Round your answer for the break-even level of output to the nearest whole number.

   If fixed costs were $7,500 instead of $5,500 the total revenue schedule does not change and the total cost schedule increases.

   The new break-even level of output is   units.

5) Every vertebrate is a chordate but not every chordate is a vertebrate. Compare the three groups we discussed in the non-vertebrate chordate lecture (Hemichordata, cephalochordate, urochordata) and explain the differences between the following in one or two paragraphs:

i) between the groups

ii) between those phyla and the vertebrates.

iii) describe the relationship of the hemichordates to other deuterostomes.

iv) What physical feature found in all of these groups is an advantage that has led to “pre-adaptedness” in the chordates? What does that physical feature allow that creates this opportunity?

Jones Equipment is a private company that sells and installs HVAC systems. Jones offers payment terms of 2/10, n/30, where customers making payment within 10 days of installation will receive a discount of 2% off the purchase price or must pay the full balance due within 30 days. Jones has just received payment from a new customer who paid within the 10-day window and is thus entitled to the 2% discount. The gross sales price of the equipment and installation, before discount, was $10,000. This discount will not result in a loss to Jones on the sale of the product and service. Jones needs your help to determine when the 2% early-payment discount should be recognized and how it should be recorded—for example, as a reduction in revenue or as a cost of sales?

1. Show the approximate journal entries that Jones would make upon installation of the equipment and upon receipt of customer payment.

Jones Equipment is a private company that sells and installs HVAC systems. Jones offers payment terms of 2/10, n/30, where customers making payment within 10 days of installation will receive a discount of 2% off the purchase price or must pay the full balance due within 30 days. Jones has just received payment from a new customer who paid within the 10-day window and is thus entitled to the 2% discount. The gross sales price of the equipment and installation, before discount, was $10,000. This discount will not result in a loss to Jones on the sale of the product and service. Jones needs your help to determine when the 2% early-payment discount should be recognized and how it should be recorded—for example, as a reduction in revenue or as a cost of sales?

Explain how you located the relevant guidance, including the search method used and which section you searched within the appropriate topic

You are called by Tim Duncan of Cheyenne Co. on July 16 and asked to prepare a claim for insurance as a result of a theft that took place the night before. You suggest that an inventory be taken immediately. The following data are available.

Your client reports that the goods on hand on July 16 cost $32,000, but you determine that this figure includes goods of $5,700 received on a consignment basis. Your past records show that sales are made at approximately 40% over cost. Duncan’s insurance covers only goods owned.

Compute the claim against the insurance company. (Round ratios for computational purposes to 2 decimal places, e.g. 78.73% and final answer to 0 decimal places, e.g. 28,987.)

You are called by Tim Duncan of Shamrock Co. on July 16 and asked to prepare a claim for insurance as a result of a theft that took place the night before. You suggest that an inventory be taken immediately. The following data are available.

Your client reports that the goods on hand on July 16 cost $32,200, but you determine that this figure includes goods of $5,500 received on a consignment basis. Your past records show that sales are made at approximately 30% over cost. Duncan’s insurance covers only goods owned.

Compute the claim against the insurance company. (Round ratios for computational purposes to 2 decimal places, e.g. 78.73% and final answer to 0 decimal places, e.g. 28,987.)