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SynysterWxlf661
22.04.2020 •
Business
You interview with an athletic footwear manufacturer that has annual advertising expenditures of $32 million and total sales revenue of $100 million, and the firm selects the profit maximizing level of advertising expenditures. If the advertising elasticity of demand is 0.4, then you know that "Rule of Thumb for Advertising" implies that the demand for the firm's products is
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Ответ:
elastic.
Explanation:
The advertising elasticity of demand measures how sensitive a market and sales are to marketing expenses. Advertising elasticity is calculated by dividing the change in quantity demanded by the percentage change in advertising expenses. Generally products with low advertising elasticity tend to have elastic demands.
Ответ:
The correct answer is C.
Explanation:
Giving the following information:
Don's Copy Shop bought equipment for $450,000 on January 1, 2017. Don estimated the useful life to be 3 years with no salvage value, and the straight-line method of depreciation will be used. On January 1, 2018, Don decides that the business will use the equipment for a total of 5 years.
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (450,000/3)= 150,000
Accumulated depreciation= 150,000
New depreciation= 300,000/4= $75,000