Answer:
All of the other answers are correct
Explanation:
Alternative Dispute Resolution (ADR) is the process of procedure for settling disputes without taking legal actions. Alternative dispute resolutions employed can be arbitration, mediation, or negotiation.
two sisters ask their mother to intervene in a fight to see if one sister improperly borrowed the other sister's sweater is an example mediation
an arbitrator decides a dispute between a Target employee and Target, over whether she was paid the correct overtime wage amount two neighbors is an example of arbitation
in a dispute hire a third neighbor who's a lawyer to help them resolve their argument is an example mediation
Companies usually buy (Click to select) assets. These include both tangible assets such as (Click to select) and intangible assets such as (Click to select) . To pay for these assets, they sell (Click to select) assets such as (Click to select) . The decision about which assets to buy is usually termed the (Click to select) or (Click to select) decision. The decision about how to raise the money is usually termed the (Click to select) decision.
Answer:
Now fit each of following terms into the most appropriate space: Financing, real, bonds, investment, executive airplanes, financial, capital budgeting, brand names.
Companies usually buy real assets. These include both tangible assets such as executive airplanes and intangible assets such as brand names. To pay for these assets, they sell financial assets such as bonds . The decision about which assets to buy is usually termed the investment or capital budgeting decision. The decision about how to raise the money is usually termed the financing decision.
Individuals performing in professional jobs are compensated initially for their ________.
a) productivity.b) goal achievement.c) knowledge.d) extensive experience.
Answer:
A
Explanation:
Which of these are considered rewards of practicing management? Building a catalog of successful products or services Becoming a mentor and helping others Experiencing decreased discretion over the work that you do Experiencing a feeling of accomplishment along with your employees Magnifying your range and stretching your abilities
Answer:
The rewards of practicing management include:
a. Building a catalog of successful products or services
b. Becoming a mentor and helping others
c. Experiencing a feeling of accomplishment along with your employees
d. Magnifying your range and stretching your abilities
Explanation:
When management is truly practiced, the rewards are usually great. The rewards cannot be quantified by what one person has accomplished, because it has some multiplier effects. Organizational efficiency is also improved. For those in management, they will gain much experience which they can easily pass to others through mentoring and coaching. With their employees, they will also feel a sense of having accomplished something meaningful. Management also gives one the ability to go beyond one's natural range, stretching the person's abilities, and enabling her to attain better outcomes than initially imagined.
Documents issued by the FASB include all of the following except:________.a. Statements of Financial Accounting Standards.b. Interpretations of Statements of Financial Accounting Standards.c. Statements of Financial Accounting Concepts.d. Financial Reporting Releases.
Answer: Financial Reporting Releases
Explanation:
The Financial Accounting Standards Board is a body that was set up in order to create and also improve the Generally Accepted Accounting Principles that are within the United States so as to be beneficial to the public.
Documents issued by the FASB include • Statements of Financial Accounting Standards
• Interpretations of Statements of Financial Accounting Standards.
• Statements of Financial Accounting Concepts.
Therefore, the Financial Reporting Releases isn't among the documents issued.
In November and December 2020, Crane Company, a newly organized magazine publisher, received $79200 for 1,000 three-year subscriptions at $26 per year, starting with the January 2021 issue. Crane included the entire $79200 in its 2020 income tax return. What amount should Crane report in its 2020 income statement for subscriptions revenue
Answer:
Crane should report $26,400 as subscription revenue in Income Statement
Explanation:
Amount received towards Subscription = $79,200 for 3 years
Subscription revenue to be recognized in Income Statement of 2020 =
= $79,200 / 3
= $26,400
Cherokee Inc. is a merchandiser that provided the following information: Amount Number of units sold 14,000 Selling price per unit $ 17 Variable selling expense per unit $ 2 Variable administrative expense per unit $ 3 Total fixed selling expense $ 19,000 Total fixed administrative expense $ 15,000 Beginning merchandise inventory $ 10,000 Ending merchandise inventory $ 23,000 Merchandise purchases $ 86,000 Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement.
Answer:
Results are below.
Explanation:
Traditional format income statement:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 10,000 + 86,000 - 23,000
COGS= $73,000
Sales= 14,000*17= 238,000
COGS= (73,000)
Gross profit= 165,000
Total selling expense= (2*14,000 + 19,000)= (47,000)
Total administrative expense= (3*14,000 + 15,000)= (57,000)
Net operating income= 61,000
Contribution margin income statement:
Total variable cost= 73,000 + 14,000*2 + 14,000*3= 143,000
Sales= 14,000*17= 238,000
COGS= (143,000)
Gross profit= 95,000
Total fixed selling expense= (19,000)
Total fixed administrative expense= (15,000)
Net operating income= 61,000
Warrants exercisable at $20 each to obtain 79000 shares of common stock were outstanding during a period when the average market price of the common stock was $25. Application of the treasury stock method for the assumed exercise of these warrants in computing diluted earnings per share will increase the weighted average number of outstanding shares by
Answer:
$15,800
Explanation:
Calculation to compute diluted earnings per share
Using this formula
Diluted earnings per share=Shares of common stock- (Shares of common stock×Warrants exercisable ÷Average market price of the common stock )
Let plug in the formula
Diluted earnings per share=79,000-(79,000×$20÷$25)
Diluted earnings per share=79,000-$63,200
Diluted earnings per share=$15,800
Therefore $15,800 diluted earnings per share will increase the weighted average number of outstanding shares.
Consider a newly issued TIPS bond with a 3-year maturity, par value of $1,000, and coupon rate of 4.00%. Assume annual coupon payments.
Time Inflation in
Year Just Ended Par Value Coupon Payment + Principal Repayment = Total Payment
0 $ 1,000.00
1 2.0% $ 1,020.00 $ 40.80 0 $ 40.80
2 1.0 % $ 1,030.20 $ 41.21 0 $ 41.21
3 3.0 % $ 1,061.11 $ 42.44 $ 1,061.11 $ 1,103.55
What is the nominal rate of return on the TIPS bond in the first year?
a. 3.00%
b. 4.08%
c. 6.08%
d. 6.00%
Answer: c. 6.08%
Explanation:
The return for the first year is given as;
= Coupon payment / Par Value
= 40.80/ 1,000
= 4.08%
TIPS are inflation protected securities so this return is the real return. Nominal return is;
= Real return + inflation
= 4.08% + 2.0%
= 6.08%
The market value of the equity of Hudgins, Inc., is $594,000. The balance sheet shows $33,000 in cash and $204,000 in debt, while the income statement has EBIT of $105,000 and a total of $149,000 in depreciation and amortization. What is the enterprise value-EBITDA multiple for this company
Answer:
3.01 times
Explanation:
Calculation for the enterprise value-EBITDA multiple for this company
First step is to calculate for the enterprise value using this formula
Enterprise value = Market capitalization + Debt−Cash
Let plug in the formula
Enterprise value = $594,000 + 204,000−33,000
Enterprise value = $765,000
Second step is find the EBITDA using this formula
EBITDA = EBIT + Depreciation and Amortization
Let plug in the formula
EBITDA = $105,000 + 149,000
EBITDA = $244,000
Third step is to calculate for the enterprise value-EBITDA multiple using this formula
Enterprise value-EBITDA multiple = Enterprise value /EBITDA
Let plug in the formula
Enterprise value-EBITDA multiple=$765,000 / $254,000
Enterprise value-EBITDA multiple = 3.01 times
Therefore the enterprise value-EBITDA multiple for this company will be 3.01 times
The following information was drawn from Gore, Inc.’s statement of cash flows. (1) $2,000 net cash outflow from investing activities. (2) $3,000 net cash inflow from financing activities. (3) $6,000 net increase in the cash balance.Based on this information, the amount of cash flow from operating activities appearing on the statement of cash flows must be a
Answer:
$5,000 net cash inflow
Explanation:
The computation of the cash flow from operating activities is shown below:
As we know that
Increase in cash = Cash flow from operating activities + cash flow from investing activities + cash flow from financing activities
$6,000 = Cash flow from operating activities - $2,000 + $3,000
So, the cash flow from operating activities is
= $6,000 - $1,000
= $5,000 net cash inflow
1. Sony has 12 core segments in its business. Is this too many or not enough? Are today’s companies diversified like they used to be a few decades ago? Can Sony’s 12-segment business model be sustainable?
2.The Future Lab Program, which is a part of Sony’s investment in R&D, embraces an approach to technological R&D that emphasizes an open creative environment and direct lines of communication with society, with the end goal being to co-create new lifestyles and customer value. Does Sony create significant customer value? Does Sony create new lifestyles?
Answer:
1) This question is about whether diversification is good or bad for a large corporation. Whether diversification can be considered good or bad depends on the corporation itself, there is no one answer fits all. In this case, Sony is divided into 12 segments or divisions and each of them generates their own cash flows and offers their own products or services.
High tech companies generally tend to diversify a lot because they need to continuously produce innovative products or improve their existing ones. E.g. Google got so large and diversified that it turned into Alphabet which owns more than 200 companies (most of them through acquisitions). Sony's largest revenue sources are gaming services, financial services and home entertainment.
When we think about Sony we probably think about consumer electronics, the Playstation or even movies, but in order to be profitable, Sony had to expand and diversify. Sony's revenues are shifting from consumer electronics to services (including financial, gaming, network, music and movies), so that means that their diversification model actually worked.
2) Sony's goal with Future Lab is to create customer value and new lifestyles, whether they are able to do so depends on how well they work it out. Future Labs is based on San Francisco, and it should serve as a place where innovative prototypes should be tested by real users. The goal is that Sony can learn from actual real life user experiences in order to improve their products and services. The real life customers and users that want to participate in Sony's program must pay a fee for doing so, but they can also experience prototypes before anyone else.
Match the below sentences to describes a relationship between two variables that has been interpreted incorrectly. a. People become tired when they wear athletic clothes. b. People who visit the dentist are more likely to get a cavity. c. Drinking a lot of water leads to sunburn. d. Cars that mechanics work on regularly are more likely to break down. 1. Omitted variable+ 2. Reverse causation+
Answer:
a. People become tired when they wear athletic clothes - No relationship
b. People who visit dentist are likely to get cavity - Reverse causation
c. Drinking lot of water causes sunburn - No relationship
d. Cars that mechanics work on are more likely to break down - Reverse causation
Note: The No relationship represents Omited Variable.
Ecstasy Pharmaceuticals faces fixed costs of $1 million with manufacturing its new drug. The company sells the drug in bottles of 50 pills for $10. The company estimates that it must sell 200,000 bottles to break even. What is the total cost to produce a bottle of 50 pills
Answer:
The cost of producing one bottle is $10 .
Explanation:
The fixed costs of making the drug = $1 million
The selling price of the 50 pills bottles = $10
Total number of bottles sold at breakeven =200000
Total revenue from the sale of bottle = $10 × 200000
Total revenue from the sale of bottle = $2000000
Since at breakeven point the total revenue is equal to total cost. So, total cost of producing the 200000 bottles is $2000000.
Thus, the cost of producing one bottle = $2000000 / 200000 = $10
Computerland is a small country which produces three goods: desktops, laptops, and tablets. The prices and quantities for three consecutive years are as follows. 2012 2013 2014 Price Quantity Price Quantity Price Quantity Desktops 10 20 10 18 12 24 Laptops 10 50 9 40 12 60 Tablets 5 50 5 45 8 55 Suppose 2013 is the base year. What is the percentage growth of real GDP from 2013 to 2014
Answer:
37.9%
Explanation:
Please find attached a clear image of the table used in answering this question
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year.
Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.
Real GDP in 2013 = (10 X 18) + (9 x 40) + (5 x 45) = 180 + 360 + 225 = 765
Real GDP in 2014 = (10 X 24) + (9 x 60) + (5 x 55) = 240 + 540 + 275 =1055
Percentage growth rate in real GDP = (1055 / 765 ) - 1 = 0.379 = 37.9%
The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented out for one day. The hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer. Month Occupancy- Days Electrical Costs January 3,030 $ 9,044 February 3,080 $ 9,234 March 3,980 $ 11,913 April 1,630 $ 6,194 May 1,270 $ 4,826 June 2,110 $ 8,018 July 650 $ 2,470 August 3,690 $ 11,552 September 1,960 $ 7,448 October 4,410 $ 12,998 November 1,600 $ 6,080 December 2,230 $ 8,474 Required: 1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. (Do not round your intermediate calculations. Round your Variable cost answer to 2 decimal places and Fixed cost element answer to nearest whole dollar amount) 2. What other factors other than occupancy-days are likely to affect the variation in electrical costs from month to month
Answer:
1.Occupancy days $3,760
Electrical costs $10,528
Variable cost=2.80
Fixed cost=$650
2. Seasonal factors
Systematic factors
Number of days
Explanation:
1.Calculation using high and low method for both Occupancy days and Electricity cost
Occupancy Electrical
Days Costs
High activity level 4,410 12,998
Low activity level 650 2,470
Change 3,760 10,528
Calculation for Variable cost of electricity per occupancy-day.
Using this formula
Variable cost= Electricity cost/Occupancy days
Let plug in the formula
Variable cost=10,528/3,760
Variable cost=2.80
Calculation for Fixed cost of electricity per month
Fixed cost=2,470-(650*2.80)
Fixed cost=2,470-1,820
Fixed cost=$650
2. Factors that are likely to affect the variation in electrical costs from month to month will include the following:
Seasonal factors
Systematic factors
Number of days
Seasonal factors can either be winter or summer.
Systematic factors include either having guests, To switch off fans as well as lights.
Number of days are days that are present in a month.
The operating cost for a pulverized coal cyclone furnace is expected to be $80,000 per year. The steam produced will be needed for only 6 years beginning now (i.e., years 0 through 5). What is the equivalent annual worth in years 1 through 5 of the operating cost at an interest rate of 10% per year
Answer:
$101,104
Explanation:
Calculation for the equivalent annual worth
Using this formula
Equivalent annual worth=Operating cost(A/P,i,n)+ Operating cost
Let plug in the formula
Equivalent annual worth=80,000(A/P,10%,5) + 80,000
Using financial calculator (A/P,10%,5) will give us (0.26380)
Hence,
Equivalent annual worth=80,000(0.26380) + 80,000
Equivalent annual worth=$21,104+$80,000
Equivalent annual worth== $101,104
Therefore the Equivalent annual worth will be $101,104
GDP is the market value of: Multiple Choice all expenditures on natural resources, labor, and capital goods in an economy in a given year. all expenditures on consumption, investment, and net exports in an economy in a given year. all intermediate goods and services produced in an economy in a given year. all final goods and services produced in an economy in a given year.
Answer:
The correct answer is the last option: All final goods and services produced in an economy in a given year.
Explanation:
To begin with, the "Gross Domestic Product" or GDP, is known as an macro economic variable which tends to be one of the most important ones that reflects the value market of all the final goods and services that are produced in an economy in a particular amount of time. Moreover, this variable is an important factor to consider when it comes to comparing nations living standards and more. It is quite helpful for the economists to use this variable as a way of knowing how is the economy of the country going and under what subvariable is everything going.
Goods that are still in the production process would be in which account?
A. Raw Materials Inventory.
B. Work in Process Inventory.
C. Finished Goods Inventory.
D. Cost of Goods Sold.
Answer:
b
Explanation:
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Erkkila Inc. reports that at an activity level of 7,100 machine-hours in a month, its total variable inspection cost is $424,730 and its total fixed inspection cost is $183,446. What would be the average fixed inspection cost per activity unit at an activity level of 7,400 machine-hours in a month
Answer:
Average fixed cost per unit= $24.79
Explanation:
Giving the following information:
The total fixed inspection cost is $183,446.
Activity units= 7,400 machine-hours
To calculate the average fixed inspection cost, we have to divide the total fixed inspection cost by the actual number of activity units.
Average fixed cost per unit= 183,446/7,400
Average fixed cost per unit= $24.79
Henrique Correa's bakery prepares all its cakes between 4 A.M.and 6 A.M.so they will be fresh when customers arrive. Day-old cakes are virtually always sold, but at a 50% discount off the regular $ price. The cost of baking a cake is $, and demand is estimated to be normally distributed, with a mean of and a standard deviation of . What is the optimal stocking level? Refer to the standard normal tableLOADING... for z-values. The optimal stocking level for the bakery is nothing cakes (round your response to the nearest whole number).
Answer:
27
Explanation:
The computation of the optimal stocking level for the bakery is shown below:
Given that
Cost = c = $7
Selling price = p = $ 10
salvage value = s = $ 5
Mean = 25
Standard deviation = [tex]\sigma[/tex]= 8
Now based on the above information
underage cost = Cu = p-c = $10 - $7 = $3
And,
overage cost = Co = c-s = $7 - $5 = $2
So,
[tex]\frac{P\leq C_{u}}{(C_{u}+C_{o})}\\\\\frac{P\leq3}{(3+2)}[/tex]
= 0.6
Now use normsinv() function in excel
So,
The Z value for the probability 0.6 is 0.2533
Now finally
The optimal stocking level is
[tex]=\mu +z\sigma[/tex]
= 25 + 0.2533 × 8
= 27.02
= 27
Effective teams translate their common purpose into ______ goals. a. universal. b. generic. c. vast. d. specific. e. diverse.
Answer:
Option “D” Specific.
Explanation:
Option “D” Specific is the correct answer because the specific goal is the success goal and this goal encompasses the actions and plans that exhibit the way to achieve the goal. Moreover, the performance of the actions tells whether the goal will be achieved or not. If teamwork for a common goal then it is the technique to increase chances to achieve success by setting their goals as the specific goals.
Late in the current year, Jolsen Company signed a four-year contract with an advertising agency. Under the contract, Jolsen must pay $375,000 annually for the agency's services. After Jolsen signed the contract, Congress enacted legislation disallowing any deduction for advertising expense for future tax years. Jolsen underestimated the after-tax cost of the contract because of:
Answer:
Tax law uncertainty.
Explanation:
The “Tax law uncertainty” is the correct answer because it can be seen in the question that Congress has disallowed the deductions for advertisement in the future tax years. Since the decisions that the government takes are confidential and only a few people are aware of the decisions before its formal announcement. So the same case is here, Jolsen had a contract of $375000 annually and it will estimate that after obtaining the tax deduction, the advertisement cost will be lower. But the changes in the tax laws result in underestimated after-tax cost by Jolsen.
After these closing entries what will be the balance in the retained earnings account? Total Revenues $ 125,000 Total Expenses 60,000 Retained Earnings (beginning) 130,000 Dividends 15,000
Answer:
$10,000
Explanation:
Given the data above,
A 4-year project has an annual operating cash flow of $51,000. At the beginning of the project, $4,200 in net working capital was required, which will be recovered at the end of the project. The firm also spent $22,300 on equipment to start the project. This equipment will have a book value of $4,620 at the end of the project, but can be sold for $5,640. The tax rate is 40 percent. What is the Year 4 cash flow
Answer: $60,432
Explanation:
The equipment can be sold for $5,640 yet the book value is $4,620. The gain is therefore;
= 5,640 - 4,620
= $1,020
After tax cashflow from sale
= Sales price - tax on gain
= 5,640 - (1,020 * 40%)
= $5,232
Cash-flow in 4th year = Annual Cash flow + after-tax cash-flow from sales + net working capital recovered
= 51,000 + 5,232 + 4,200
= $60,432
You are considering investing in a security that matures in 10 years with a par value of $1,000. During the first five years, the security has an 8 percent coupon with quarterly payments (i.e., you receive $20 a quarter for the first 20 quarters). During the remaining five years the security has a 10 percent coupon with quarterly payments (i.e., you receive $25 a quarter for the second 20 quarters). After 10 years (40 quarters) you receive the par value. Another 10-year bond has an 8 percent semiannual coupon (i.e., the coupon payment is $40 every six months). This bond is selling at its par value, $1,000. This bond has the same risk as the security you are thinking of purchasing. Given this information, what should be the price of the security you are considering purchasing
Answer:
$1,060.75
Explanation:
the yield to maturity of the second bond is to 4% semiannual or 8.16% effective annual rate.
so we have to calculate the quarterly interest rate that yields an effective annual rate of 8.16%:
0.0816 = (1 + i)⁴ - 1
1.0816 = (1 + i)⁴
⁴√1.0816 = ⁴√(1 + i)⁴
1.0198 = 1 + i
i = 0.019804 = 1.9804%
now we must discount the first bond using that effective interest rate:
PV of face value = $1,000 / (1 + 4%)²⁰ = $456.39
PV of first 20 coupon payments = $20 x 16.38304 (PV annuity factor, 1.9804%, 20 periods) = $327.66
now we must find the value of the last 20 coupon payments but at the end of year 5 = $25 x 16.38304 = $409.58. Then we calculate the PV = $409.58 / (1 + 4%)¹⁰ = $276.70
the bond's current market value = $456.39 + $327.66 + $276.70 = $1,060.75
The following data pertains to Traverse Co.’s investments in marketable debt securities: Market value Cost 12/31/24 12/31/25 Trading $150,000 $155,000 $145,000 Available-for-sale 150,000 130,000 110,000 What amount should Traverse Co. report as unrealized holding loss to be included in 2025 Net Income?
Answer and Explanation:
The computation of the amount reports as unrealized holding loss is shown below:
The marketable securities should be reflected by considering the lower value of market value or cost therefore the trading cost would be decreased by $10,000 i.e.
= $155,000 - $145,000
= $10,000
While the available to sale value is also fall but does not reflected in the income statement it could be shown in the other comprehensive income
The basic purpose of a performance appraisal system is to ________.
Answer:
To evaluate the overall performance of an employee.
Explanation:
Given that the Performance Appraisal is a systematic analysis and assessment of both the single employee or the group of employees as a whole
Hence, the basic purpose of a performance appraisal system is to evaluate and assess the overall performances of employee(s), or team, specifically in the area of work responsibilities, assignments, workplace affair, leadership skills, and potentials.
The following balances are from the accounts of Tappan Parts: January 1 (Beginning) December 31 (Ending) Direct materials inventory $ 21,800 $ 24,600 Work-in-process inventory 32,300 29,200 Finished goods inventory 5,500 6,500 Direct materials used during the year amount to $46,000 and the cost of goods sold for the year was $52,700. Required: Prepare a cost of goods sold statement.
Answer:
Tappan Parts:
Cost of goods sold statement:
Beginning inventory:
Direct materials $21,800
WIP 32,300
Finished goods 5,500
Total $59,600
Purchases of materials 53,400
Available $113,000
less Ending inventory:
Direct materials $24,600
WIP 29,200
Finished goods 6,500
Total $60,300
Cost of goods sold $52,700
Explanation:
a) Data and Calculations:
January 1 (Beginning) December 31 (Ending)
Direct materials inventory $ 21,800 $ 24,600
Work-in-process inventory 32,300 29,200
Finished goods inventory 5,500 6,500
Direct materials used during the year amount to $46,000 and the cost of goods sold for the year was $52,700
b) The missing figure in the above statement is the purchases of raw materials. This is determined by adding the cost of goods sold to the ending inventory of raw materials, work in process, and finished goods. This gives the cost of raw materials, WIP, and finished goods available for sale. Then the beginning inventories of raw materials, WIP, and finished goods are deducted to obtain the amount of purchases of materials made during the period.
In Pro-self or egoistic orientation: primary concern is not with personal outcomes.A. TrueB. False
Answer:
B, False
Explanation:
In terms of philosophy, the egoistic refer to a theory in which one should be in a motivation and the objective of its own actions. There is a difference between the egoism and egotism. Egotism refer to an over and above valuation of own importance or own activities
Here it deals with the main concern that what one can demand for and it is towards for the self alone that is not relevant to make uncomfortable for others
Therefore the given statement is false
You are the manager of a firm that receives revenues of $50,000 per year from product X and $90,000 per year from product Y. The own price elasticity of demand for product X is -3, and the cross-price elasticity of demand between product Y and X is 1.6. How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 2 percent
Answer:
$-120
Explanation:
Own Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
-3 = percentage change in quantity demanded / 2%
percentage change in quantity demanded = --3 x 2% = -6%
The quantity demanded of good X would fall by 6%
Revenue would change by -0.06 x $50,000 = -$3000
Cross price elasticity of demand measures the responsiveness of quantity demanded of good Y to changes in price of good X.
1.6 = percentage change in quantity demanded of good Y / 2%
percentage change in quantity demanded of good Y = 1.6 x 2% = 3.2%
The quantity demanded of good Y would increase by 3.2%
Revenue would change by 0.032 x $90,000 = $2880
Total change = -$3000 + $2880 =-$120
