The price elasticity of the loan taken by the entrepreneur comes out to be 10.
<h3>
What is the price elasticity of demand?</h3>
The price elasticity of demand is an indicator used to determine the sensitivity of demanded quantity with respect to its corresponding price.
Given values:
Change in quantity demanded: 50%
Change in price: 5%
Computation of price elasticity of demand:
Therefore, when the change in quantity demanded is 50% with the change in the price is 5%, then the price elasticity of a business loan is equal to 10.
Learn more about the price elasticity in the related link:
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Answer:
So the amount of sales needed will be $144000
Explanation:
We have given selling price per unit =$8
Variable cost per unit = $4.90
Contribution margin per unit = 8-4.90=$3.1
Contribution margin Ratio = 
Fixed costs = $37200
Target profit= $18600
Required Sales amount to earn the desired profit = 
Answer: When the price of the flour falls, the equilibrium price of the cream rises and the equilibrium quantity of the cream cheese also rises
Answer A is correct
Explanation:
if flour is cheaper, bagels are chepear so demand increases and both equilbrium price and equilibrium quantity rises
Answer:
The amount of the impairment loss for this asset is <u>$110,000</u>
Explanation:
A assets is impaired when the fair market value of that assets lowers than the book value of the asset.
To calculate the impairment of an assets following formula is used
Impairent = Book value of Asset - fair market value of the asset
Placing values in the formula
Impairent = $700,000 - $590,000
Impairent = <u>$110,000</u>
Answer:
The tax that must be added to the C corporation tax liability for the year before the S election = $49000*1/4=$12250
The rest of the three instalments of $12250 each will be paid with Lent Corporation's next three tax returns
Explanation:
FIFO Value/basis =$650000
LIFO value/basis =$510000
Difference =$140000
35% Tax =$140000*35% = $49000
The tax that must be added to the C corporation tax liability for the year before the S election = $49000*1/4=$12250
The rest of the three instalments of $12250 each will be paid with Lent Corporation's next three tax returns
