LaTonya Horton works for the Stars organization and is responsible for managing ticket sales. She knows that ticket price and season ticket packages are related to consumers' interest in purchasing tickets and she tries to price individual tickets and packages at the level where ticket sales and profitability are maximized for the Spurs home games. LaTonya typically tests the _______ of demand by creating special events or special sales where she adjusts the price of tickets so she can determine the best price that maximizes profitability for the organization.
A. price elasticity
B. quantity
C. feasibility
D. sensitivity
Answer: A
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U.S. GAAP and IFRS provide criteria for distinguishing operating leases from capital leases. Which of the following is/are not true?
a. U.S. GAAP provides four criteria, any one of which qualifies a lease as a capital lease. b. IFRS provides general criteria for identifying the entity enjoying the rewards and incurring the risk. c. Firms can currently apply the fair value option to capital leases. d. The FASB and the IASB have undertaken a joint project involving the lessee's accounting for leases which may result in treating all leases as capital leases. e. all of the above
The total cost formula is TC = DP + QIP
2 + DS Q . Which of the following is true at the Economic Order Quantity? A) EOQ = QIP 2 B) QIP 2 = DS Q C) EOQ = DS Q D) DP = QIP 2
Larger transfer batches give shorter lead times and lower inventories, and there is more material handling than smaller transfer batches.
Answer the following statement true (T) or false (F)
What was the pre-tax gain or loss to Paddy Inc. on the intercompany purchase of the bonds?
Duff Inc. owns 75% of Paddy Corp. and uses the Equity Method to account for its investment. Paddy purchased $120,000 face value of Duff's 12% par value bonds on January 1, 2017 for $100,000, when Duff's bond liability consisted of $240,000 par of 12% bonds maturing on January 1, 2027. There was an unamortized bond discount of $20,000 attached to the bonds on that date. Interest payment dates are June 30 and December 31 each year. Straight line amortization is used. Both companies have a December 31 year end. Intercompany bond gains and losses are to be allocated to each company. During 2017, Paddy earned a net income of $80,000 and paid dividends of $20,000. A) $20,000 loss. B) Nil. C) $40,000 loss. D) $20,000 gain.