Income Elasticity of demand
Income Elasticity of demand The income elasticity measures the response rate of the amount due to an increase (or decrease) in income of consumers. The formula for the income elasticity (IEoD), is: IEoD = (% change in the quantity required) / (% change on income) To calculate the income elasticity For example: Given the following data, calculate the income elasticity of demand changes in the consumer income 40000 $ $ 50000th The first thing we do find the data that we need. We know that income is $ 40000 and the new price is $ 50000 that we income (OLD) = $ 40000 and Income (NEW) = $ 50000. De la carte, we see that the amount requested if the income is $ 40000 and 150, if the price is $ 50000 is the 180th As we of $ 40000 to $ 50000, we have QDemand (OLD) = 150 and QDemand (NEW) = 180, where "QDemand" is an abbreviation of "quantity." Also, you should these four figures in written form: The result (OLD) = 40,000 Income (NEW) = 50,000 QDemand (OLD) = 150 QDemand (NEW) = 180 To calculate the price elasticity, we need to know what the percentage change in the quantity and demand is what the percentage change in the price. It is better to calculate these one at a time. Calculate the percentage change in the quantity required The formula for calculating the percentage change in the amount requested is as follows: [QDemand (NEW) - QDemand (OLD)] / QDemand
Accounting case study. I am writing this report to explain the contents thats on the profit and loss account and the purpose of each element. I am then going to write examples of different ratios for the business.
Name: Hannah Clark - Year/Group: BTEC National Diplomas in Business - Lecturer: Richard Taylor Unit 2 - Investigating business resources P5 & P5 To: Richard Taylor From: Hannah Clark Date: 24th May 2010 I am writing this report on the contents of the profit and loss account .0 TERMS OF REFERENCE I am writing this report to explain the contents that's on the profit and loss account and the purpose of each element. I am then going to write examples of different ratios for the business. 2.0 PROCEDURE First of all I am going to look at all of the contents on a profit and loss account, I am then going to write what they all are and what they do on the account. I am then going to write down all of the ratios that the business needs to think about. 3.0 FINDINGS Sales This is how much they sold in the year without anything getting taken off. The sales for the year were £63,850. Sales returns This is the amount paid back to the customers when items are returned. The sales return figure was £250 Net Sales (Turnover) This is the receipts for sales for the year. The net sales for the year was £63600 (63,850 - 250) Opening Stock This is the value of stocks of finished products, work in progress and raw materials that are held in the business at the beginning of the year. The opening stock that K Han had at the beginning of the year was £7700. Purchases
Business Development Plan
Contents Page Contents Page Contents Page 20 Human Resources 21 Quality Control Human Resources Human Resources Management (HRM) includes a variety of activities within the business. This is a matter of deciding what staffing is required for the business to and whether to use independent contractors or hire employees to fill these needs;- * Gathering and training the best employees * Ensuring that these are high performers * Dealing with certain performance issues * Ensuring that your personnel and management practices conform to various regulations and are up to standards. * Making sure that your staff are well-mannered and polite towards the customers/consumers * Organising and building routines for the employees so they now when they need to be present and the hours that they work and when they have their lunch break etc. * Making sure that the staff get their wages/paid on time * Also ensuring that all staff are treated equally and with the same respect The activities include managing the way you approach to your employee benefits, compensation, employee records and personnel policies. This usually occurs within a small business for both for-profit and non-profit businesses and they have to carry out these activities and they have do carry out theses activities themselves as they can not afford to get part or full-time help. These policies are
CTC Case
The Developing countries equity markets have undergone immense changes in recent years. International investors have purchased emerging-market equity shares at exceptional rates, tripling the value of their emerging-market equity portfolios between 1989 and 1992. Bigger foreign investment in rising markets has tightened their price linkages to the international financial centers. Partly as a result of these changes, emerging markets have matured considerably, achieving increased market size and an increased capacity to support equity issuance. A notable feature of the recent increase in equity portfolio investment in developing countries has been a large increase in international equity market placements by developing-economy companies. The vast majority of these placements have taken the form of ADRs. An ADR is essentially a claim, issued by a U.S. depository institution, to an underlying share of stock in a foreign-based company (www.citibank.com). In what is essentially a custodial arrangement, the U.S. depository institution backs the ADR by holding shares of the underlying stock on behalf of the owner of the ADR. In exchange for a fee, the depository institution provides the service of converting dividend receipts denominated in a foreign currency into dollars and distributing them to ADR holders. Owners of ADRs are entitled at any time to redeem their ADRs for
Monopoly: An Analysis of Its Transactions.
Monopoly: An Analysis of Its Transactions Dana W. Edwards Accounting 502 November 29, 2001 Monopoly: An Analysis of Its Transactions In 1933, Charles Darrow lived in the period known as the Great Depression. During this period the United States was experiencing massive unemployment and misfortune. This heightened period of economic ruin gave rise to the board game Monopoly which promised its players vicarious fame and fortune through characters such as a dog, a car, a horse, and many others. In addition to its leisure value, Monopoly provides valuable lessons in business, specifically for those interested in Accounting principles. The overall objective to Monopoly is to bankrupt all of your opponents. To do this, a player needs to acquire multiple properties while maintaining a reasonable amount of cash to pay debts such as rent and fees. The example company used in this analysis was Edwards Property Management (EPM) who managed properties for other companies and stayed at other properties in order to assess their competitive value. The company goal was to own/rent certain monopolies and to manage others for companies. To start the business, EPM borrowed $1500 from the local bank. This money will be used to purchase property, pay taxes and general operating expenses. These funds were acquired as a note payable at 10% interest. The starting capital was recorded
Business resources D1
D1, Evaluate how managing resources and controlling budgets can improve the performance of a business. If a business manages its physical and technological resources well this would the performance of the business it will give Sainsbury the full benefits of the resources. If Sainsbury manages and controls its budgets effectively then it can improve the performance and success of the business. If a business manages to maximise it income and minimise it cost then it would improve the business profits level which would improve the business performance. If a business manages it cost and budgets properly by purchasing the right stock level which it needs and knows it would sell with a specific period of time then this means that the business would benefit by making substantial sales revenue from those stock as a result. Another benefit is that the business would be saving money from the space needed to hold the stock in the stockroom. Another benefit would be that the business would be making good profits level from the sales. This would improve the performance and success of the business overall. If a business manages its costs efficiently then it would improve the success and performance of the business. If a business employs the right amount of workers it needs then it would reduce the cost of the business. Another benefit if the business employs the right amount of staff
Profit & Loss Accounts and Balance sheet.
Mr. Han's business year ending 2005 Mr. Han's business year ending 2006 Industry Averages Mr. Han's business year ending 2007 Return on Capital Employed 41% 45% 37% 1,325 5,575 + 8360 - 1610 = 50% Gross Profit % 44% 45% 39% 27,600 63,600 = 43% Net Profit % 28% 27% 30% 1,325 63,600 = 17.8% Stock Turnover 44 days 56 days 62 days 7700+7,400 36,000 = 76 days Debtor payment period 0.89 days 0.88 days 0.9 days 50 63,600 = 0.86 days Creditor payment period 5.7 days 3 days 2 days 610 63,600 = 9.2 days Current Ratio 4.8:1 4.9:1 4.5:1 8360 610 = 5.1:1 Acid Test .1:1 0.89:1 :1 8360 - 7400 610 = 0.6:1 The results that are shown above are accurately calculated. The figures are taken from Mr. Han's profit & Loss Accounts and Balance sheet 2007. The table signifies that Mr. Han's business for the year ending 2007. Return on Capital Employed: - Return on capital employed in the year 2005 was only 41%, it then went up in the following year by 4% and again in the year 2007 it went up to 50%. This signifies that the ratio has been improved. This ratio is improved because the business has increased investment. Return on Capital Employed can be improved in such way as Mr. Kong has to increase the net profit for next year. This current figure is far greater than the industry average which shows the business is working much efficient
Adrenaline Air Sports - background and recommendations
Case: Adrenaline Air Sports Background: The case is the study of Adrenaline Air Sports and their attempts to grow from a new start-up company a few years ago. The company has many different internal and external environment issues that they need to overcome if they wish to continue to grow. Sky Diving is a sport that is growing by about 2% per year. The external environment for consists of being in an area far away from major population areas to draw from to support their need for new skydivers. The town the company is in is a small resort town but does get 10,000 new visitors per week during the high season. They are within 40 miles of a population base of 120,000 people in the Roanoke area. In addition, about an hour and half drive away is the college town of Blacksburg, which has a population of about 40,000 people plus an additional enrollment of 25,000 students. Students are the greatest percentage of first time customers but rarely make a second jump due to costs. The Greensboro area of North Carolina is 80 miles south. First time students and those that continue to get license are the biggest moneymakers for the company. Only 3 percent of first time skydivers return and those that do tend to stay in the sport, so it is key to get more to return since they have the highest profit margin. Adrenaline Air Sports has two main competitors that are located 120 miles
Business Accounting
P2 The difference between capital and revenue items of expenditure and income For this assignment I will attempt to explain the difference between capital and revenue items of expenditure and income. I will do so by defining capital income, capital expenditure, revenue income, and revenue expenditure. Capital Income Capital is money or value contributed by the owner of a business to get the business started or to buy equipment. For a sole trader there is just one owner so that one person has to raise all of the capital required, but limited companies may have many shareholders who all contribute. The figure for fixed capital may increase each year if profits are retained in the business. A sole trader introducing additional money to the business can raise additional capital through private funding e.g. family/friends or by getting a business loan but banks are understandably reluctant to lend without security, so the sole trader may have to raise funds by offering security in the form of the private residence. Revenue income The company earns revenue income by selling products or providing services. Income Generated from Sales Sales can be for cash or as a credit transaction. Cash sales are often best because the business receives the money for the sale immediately. However, business will often have to offer credit facilities to encourage growth in sales. Credit
introduction to accountant
TASK - 1.................................................page 1-4 TASK - 2...............................................page 5-7 TASK - 3...............................................page 8-9 TASK - 4...............................................page 10-12 TASK - 5...............................................page 13-14 TASK - 6...............................................page 15-23 TASK - 7................................................page 24-32 TASK -8.................................................page 33-38 TASK - 9................................................page 39-43 TASK - 10...............................................page 44-48 Bibliography And Sources I have used............page 49 Task-1 Acknowledgement: I would like to be grateful to my teacher for helping me out in this assignment. Introduction: For this assignment my aim to give advice to someone who is unsure about what is required and cannot see the purpose of maintaining accounting records. Basically, this person is one who does not understand the value of Account and its purpose. What is an accounting? An account is to be defined as the skills or practice of maintaining accounts and preparing reports. And the purpose is to aid financial control and Management of a business. Book keeping: Book keeping is the process of recording in books of account or on computers the
