Identify and explain the factors that influence demand for new casualization and athleisure wear trend Question 3 (4 marks) What do you think is a) a complementb) a substitute for new clothing? Question 4 (10 marks) "The prices for fashion that fit the casualization and athleisure wear trend have increased the most That includes men's hoodies, sweaters, sweatshirts, sweatpants and t-shirts and for women, loungewear like cardigans, sweaters and sweatpants costmore". With the aid of a diagram, explain what would happen to quantity demanded for casualization and athleisure wear because of a change in price Question 5 (4 marks) What factors would you expect to affect the price elasticity of demand for new casualization and athleisure wear trend?
Answers
Over time, demand for casualization and athleisure wear may become more elastic as consumers have more time to adjust to price changes.
Factors that influence demand for new casualization and athleisure wear trend
The factors that influence demand for new casualization and athleisure wear trend are:
1. Demographics:
Age, gender, income, education, and social status are all demographic characteristics that can influence a person's fashion preferences.
Young people tend to follow the latest fashion trends, and as a result, they are more likely to demand new casualization and athleisure wear trends.
Women are more likely than men to purchase athleisure wear, while men are more likely to purchase casual wear. Income also influences fashion preferences, with wealthier individuals more likely to buy high-end athleisure wear.
2. Fashion Trends:
The fashion industry and trends set by celebrities can influence what consumers buy. Social media also plays an important role in influencing fashion choices.
3. Seasonal Changes:
During the summer season, demand for athleisure wear rises. During the winter season, there is an increase in demand for casual wear.
4. Health Awareness:
As more people become health-conscious, there is a growing demand for athletic wear that is both fashionable and functional.
5. Comfort:
Many people are choosing to wear athleisure wear because it is more comfortable than traditional clothing.
Complement:
A complement is a good that is used with another good. For example, a complement to jeans might be a shirt or a jacket.
b. Substitute:
A substitute is a good that can be used in place of another good. For example, if the price of jeans increases, consumers may choose to purchase sweatpants instead.
Factors that would affect the price elasticity of demand for new casualization and athleisure wear trend include:
1. Availability of Substitutes:
The more substitutes there are, the more elastic the demand is likely to be.
2. Luxury Goods:
High-end athleisure wear is likely to be more elastic than lower-priced goods.
3. Necessities vs. Luxuries:
If casualization and athleisure wear are considered necessities, demand is likely to be less elastic. If they are considered luxuries, demand is likely to be more elastic.
4. Time:
Most time, demand for athleisure wear may become more elastic as consumers have more time to adjust to price changes.
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Related Questions
3. View the sample report by clicking the "Sample Student Report" link and answer the
following questions. (4 points)
I
a. What is the composite ACT score range?
b. What is the composite score on the report shown?
Answers
The range of the Sample Student Report is gotten by subtracting the minimum ACT score from the maximum ACT score.
What is a sample range?The range of a group of numbers is the difference between the highest and lowest values in a set of numbers. It is given by:
Range = highest number - lowest number
The range of the Sample Student Report is gotten by subtracting the minimum ACT score from the maximum ACT score.
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what happens to cost of sales when trading stock is donated
Answers
The cost basis of your shares may be impacted by stock dividends or non-dividend distributions, so keep track of them.
Do distributions of capital gains alter cost basis?
Some investors think that reinvesting dividends or capital gains, which involves using the money to buy more shares of the investment, counts as an increase in the return on their investment. But here's what actually takes place: The distribution is applied to your cost basis when it is reinvested.
Unlike gifting shares, inherited stock is not valued at its original cost basis, which is what tax accountants refer to as an asset's initial value. A stock's cost basis is raised to reflect the security's value on the date of death when it is inherited by a person.
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one-year rate in japan is 4% and one-year rate in the u.s. is 2%. the current exchange rate is 110 yen per dollar. if you can enter into a forward exchange rate of 120 yen per dollar, what would be your arbitrage profit per 100 units of the borrowed currency? assume that you can borrow and lend at the given interest rates.
Answers
Your arbitrage profit per 100 units of the borrowed currency makes a riskless profit of 0.02 dollars.
The first thing to do is figure out what the correct forward rate should be.
The forward rate should be (110×1.04)/1.02 = 112.15 yen/dollar.
Thus you want to exchange yen for dollars at 110 rather than the implied 112.15.
If you start with no money then you need to borrow 1 dollar at 2% exchange them into 110 yen and invest the yen at 4%.
The yen will grow to be 110×1.04 = 114.4
so you enter into a forward exchange agreement to exchange
114.4 yen into dollars at an exchange rate of 110.
This will yield 1.04 dollars.
You need to repay your dollar borrowing which will cost 1.02 dollars.
Thus you make a riskless profit of 0.02 dollars.
In economics and finance, arbitrage is the exercise of taking benefit of a distinction in fees in two or greater markets; placing an aggregate of matching offers to capitalize on the difference, the profit being the distinction among the market expenses at which the unit is traded.
Whilst used by lecturers, an arbitrage is a transaction that includes no bad cash going with the flow at any probabilistic or temporal country and tremendous cash going with the flow in at least one kingdom; in easy phrases, it's far the opportunity of threat-free earnings after transaction charges. As an example, an arbitrage possibility is present whilst there may be the opportunity to instantly purchase something for an extremely low fee and sell it for a better price.
Arbitrage is the simultaneous buying and sale of equal or comparable assets in unique markets in order to take advantage of tiny differences in the asset's listed rate. It exploits short-lived versions inside the rate of the same or similar economic units in different markets or in special forms.
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Which statement is true?
1. bank interest lower than inflation means more purchasing power.
2. Nominal rates are an accurate figure of purchasing power.
3. Real interest measures the power of the saved money.
4. Real interest is the rate quoted in loan and deposit agreements.
Answers
3. Real interest measures the power of the saved money. This statement is true.
What is real interest rate?
A loan's or deposit's interest rate that has been prorated for inflation is known as the real interest rate. It indicates the actual rise in buying power brought about by an investment after taking inflation into account. Subtracting the rate of inflation from the nominal interest rate yields the real interest rate. For instance, the actual interest rate would be 1% (3% - 2%), if a savings account pays 3% interest and the rate of inflation is 2%.
After accounting for inflation, this indicates that the savings account's buying power has grown by 1%. Inflation-related buying power loss is shown by a negative real interest rate, whereas a growth in purchasing power is indicated by a positive real interest rate. In other words, the real interest rate, which accounts for the effects of inflation, gives a more realistic picture of the underlying return on an investment or the true cost of borrowing.
Real interest rate is the nominal interest rate adjusted for inflation, and it reflects the true increase in purchasing power resulting from an investment. A positive real interest rate indicates that an investment has increased purchasing power, while a negative real interest rate means the investment has lost purchasing power due to inflation.
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An investment in labor helps a business increase productivity by:
Answers
An investment in labor helps a business increase productivity by bringing in more people to make a product.
What is an investment?It should be noted that an investment simply means a process or action that's used to generate revenue.
In this case, an investment in labor helps a business increase productivity by bringing in more people to make a product.
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1.
In 2016, a market had sales of £350.000. In 2017, the market grew by 5%.
Calculate the new market size in sales value.
Answers
Answer:
The new market size in sales value is 367,500
Explanation:
Answer:
£367,500
Explanation:
the market was £350,000 in 2016.
in 2017, the market grew by 5%.
the new market size will 5% more than 2016.
if 2016 was 100%, 2017 will be 105%
2017 = 105% x £350,000
=105/100 x £350,000
=1.05 x £350,000
=£367,500
what is meant by recession
Answers
Answer:
Spatial recession in paintings is the relationship between objects which appear to lie near to the observer and those which seem further away, and thus recede into space. ...
Explanation:
Which of the following is an example of a SMART goal? (choose all that apply).
a. Specific. b. Measurable. c. Achievable. d. Realistic. e. Timely.
Answers
A SMART goal is a term used to describe specific, measurable, achievable, realistic, and timely goals. When a goal is SMART, it is more likely to be achieved. Let's briefly discuss each option in detail:
a. Specific:
A SMART goal must be specific, meaning it should answer the five W's: who, what, where, when, and why. For example, stating "I want to increase my sales by 20% in the next quarter" is a specific goal because it clearly defines what needs to be accomplished.
b. Measurable:
A SMART goal must be measurable, meaning it should have a metric or criteria that indicate whether the goal has been achieved or not. Using the previous example, the goal of increasing sales by 20% in the next quarter is measurable because you can track and measure the percentage increase in sales.
c. Achievable:
A SMART goal must be achievable, meaning it should be realistic and attainable. It considers the current resources, capabilities, and constraints. In the example of increasing sales by 20% in the next quarter, it is important to assess whether it is feasible based on available resources, market conditions, and other factors.
d. Realistic:
A SMART goal must be realistic, meaning it aligns with your current situation, capabilities, and resources. It takes into account practical considerations. In the sales increase example, it is important to consider factors such as market demand, competition, and the capacity of the sales team.
e. Timely:
A SMART goal must be timely, meaning it should have a specific timeframe or deadline. It provides a sense of urgency and helps in setting priorities. Adding a timeframe to the goal of increasing sales by 20% in the next quarter, such as "by the end of the quarter," makes it timely.
A SMART goal is one that is specific, measurable, achievable, realistic, and timely. Options a, b, c, d, and e all represent different aspects of a SMART goal. By considering these factors when setting goals, individuals and organizations can increase their chances of success.
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Which of the following statements best characterizes the bottom line of security for e-commerce?
A) Good security is expensive but critical, and it is the responsibility of the customer to ensure that his or her private information is secure.
B) Good security is inexpensive but critical, and it is the responsibility of the customer to ensure that his or her private information is secure.
C) Good security is expensive but critical, and it is the responsibility of the business to ensure that the customer's private information is secure.
D) Good security is inexpensive but critical, and it is the responsibility of the business to ensure that the customer's private information is secure.
Answers
Answer:
Good security is expensive but critical, and it is the responsibility of the business to ensure that the customer's private information is secure. C
Explanation:
In which mode(s) of transportation do companies often employ teams of two drivers, either in tandem or sequentially, to increase efficiency?
air transportation
rail transportation
road transportation
water transportation
Answers
Most transport-based companies employ teams of two drivers in an air mode of transportation to increase efficiency.
What is an air mode of transportation?This transportation are performed by aircraft for the public carriage of passengers, baggage, cargo, mail etc for exchange of remuneration or hiring. It is considered to be the fastest modes of public transport which connects international boundaries.
As a matter of fact, the presence of two pilots on a plane make coordination much easier because one pilot can concentrate on the flight and the other completes the checklist. Therefore, an increased efficiency is achieved.
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Answer:
ROAD transportation often employs teams of two drivers to increas efficiency.
Explanation:
common sense tbh
A single branch of Simpson Shoes has been operating since 1917. As they consider moving into online marketing, the owner, Bert Simpson, wants to focus on a specific, potential customer type. Which potential customer would benefit from Simpson Shoes running a Local Inventory ad
Answers
A Local Inventory ad from Simpson Shoes would benefit customers who are looking for convenience and quick access to the shoes they desire.
What is Local Inventory?Local inventory is an inventory of goods or services that are located within a certain geographic area.
By advertising their local inventory, customers can easily find out which shoes are available in their local store and can then make the trip down to purchase them. This type of ad would be especially beneficial to customers who live close to the store and are looking for a specific type of shoe. This type of ad would also be beneficial to customers who are in a rush and need the shoes quickly, as they can easily find the store location and make the purchase immediately.
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Marilyn has a biweekly gross pay of $810 and claims 3 federal withholding allowances. Marilyn has all of the following deductions from her gross pay:
federal tax from the following table
A 9-column table with 7 rows is shown. Column 1 is labeled If the wages are at least with entries 720, 740, 760, 780, 800, 820, 840. Column 2 is labeled But less than with entries 740, 760, 780, 800, 820, 840, 860. Column 3 is labeled And the number of withholding allowances is 0, the amount of income tax withheld is, with entries 80, 83, 86, 89, 92, 95, 98. Column 4 is labeled And the number of withholding allowances is 1, the amount of income tax withheld is, with entries 62, 65, 68, 71, 74, 77, 80. Column 5 is labeled And the number of withholding allowances is 2, the amount of income tax withheld is, with entries 44, 47, 50, 53, 56, 59, 62. Column 6 is labeled And the number of withholding allowances is 3, the amount of income tax withheld is, with entries 26, 28, 31, 34, 37, 40, 43. Column 7 is labeled And the number of withholding allowances is 4, the amount of income tax withheld is, with entries 14, 16, 18, 20, 22, 24, 26. Column 8 is labeled And the number of withholding allowances is 5, the amount of income tax withheld is, with entries 1, 3, 5, 7, 9, 11, 13. Column 9 is labeled And the number of withholding allowances is 6, the amount of income tax withheld is, with entries 0, 0, 0, 0, 0, 0, 1.
Social Security tax that is 6.2% of her gross pay
Medicare tax that is 1.45% of her gross pay
state tax that is 21% of her federal tax
Determine how Marilyn’s net pay will be affected if she increases her federal withholding allowances from 3 to 4.
a.
Her net pay will increase by $15.00.
b.
Her net pay will decrease by $15.00.
c.
Her net pay will increase by $18.15.
d.
Her net pay will decrease by $18.15.
Answers
Answer:
c
Explanation:
Answer:
Her net pay will increase by $18.15
what distribution intensity level is best used for luxury watches which consumers clearly prefer?
Answers
There are three main distribution intensity levels: intensive, selective, and exclusive. Intensive distribution means that a product is widely available and can be found in many retail outlets. Selective distribution means that the product is only sold through a limited number of outlets, and those outlets are carefully chosen. Exclusive distribution means that the product is only available in a very limited number of outlets, often in upscale, specialized stores.
For luxury watches, the best distribution intensity level would be exclusive distribution. This is because luxury watches are a high-end product, and consumers who purchase them expect exclusivity and a sense of prestige. By limiting the distribution to a small number of high-end stores, the luxury watch brand can create an image of exclusivity and rarity, which can be very attractive to consumers.
Another benefit of exclusive distribution is that it allows the luxury watch brand to maintain control over how its product is presented and sold. By carefully selecting the stores that sell their watches, luxury watch brands can ensure that their products are presented in a way that is consistent with their brand image and values. This can help to reinforce the brand's reputation for quality and exclusivity.
In conclusion, for luxury watches that are preferred by consumers, the best distribution intensity level to use is exclusive distribution. By limiting the availability of the product and carefully selecting the outlets where it is sold, luxury watch brands can create an image of exclusivity and prestige that is very attractive to consumers.
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decision trees are particularly useful when a. all possible outcomes and alternatives are not known. b. perfect information is available. c. formulating a conditional values table. d. the opportunity loss table is available. e. a sequence of decisions must be made.
Answers
Decision trees are particularly useful when a sequence of decisions must be made. Hence Option E is the answer.
Define decision tree.The development of prediction algorithms for a target variable or the establishment of classification systems based on numerous variables are two prominent applications of the decision tree technique. DTs are a non-parametric supervised learning approach that can be used for regression and classification.
The objective is to learn straightforward decision rules derived from the data features in order to build a model that predicts the value of a target variable. Each internal node represents a "test" on an attribute, each branch indicates the result of the test, and each leaf node represents a class name in this flowchart-like structure (decision taken after computing all attributes).
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no matter what the probability distribution of future exchange rates is, as long as one out of several scenarios results in a negative net present value (npv), a project should not be accepted. True or false?
Answers
The statement is true because the net present value (NPV) of a project is a crucial factor in deciding whether to accept or reject a project.
NPV is the difference between the present value of cash inflows and the present value of cash outflows, taking into account the time value of money. If the NPV is positive, it means that the project is expected to generate a return higher than the required rate of return.
Conversely, if the NPV is negative, it indicates that the project will not generate sufficient returns to cover the cost of capital. Therefore, if one out of several scenarios results in a negative NPV, it is a clear indication that the project is not financially viable and should not be accepted, regardless of the probability distribution of future exchange rates.
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What do you mean by technical occupations ? write with examples
Answers
Answer:
I think techical occupation means the worker who work through laptops and computers
software engineer game designer publisher etc....How are delivery drivers able to meet the delivery timelines selected by customers when purchasing products?.
Answers
Delivery drivers are able to meet the delivery timelines selected by customers when purchasing products by using : A GPS to avoid traffic delays.
What is product delivery?Product delivery refers to the process of moving goods and services from one place to another. This process entails getting the goods produced either to a place where they will be sold or to final consumers.
The use of GPS enable us delivery drivers avoid traffic delays by informing them ahead where there are traffic.
Hence, delivery drivers are able to meet the delivery timelines selected by customers when purchasing products by using a GPS to avoid traffic delays.
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Do not use "x" as a multiplier. It is a variable. Round your
answer to the nearest cent.
= The demand function for a commodity is given by D(z) = 2000 – 0.12 – 1.0122. Find the consumer surplus when the sales level is 100. Round your answer to the nearest cent.
Answers
The consumer surplus when the sales level is 100 is $5661.
Given the demand function for a commodity as D(z) = 2000 – 0.12z – 1.0122z.
The sales level is 100.
Now we need to find the consumer surplus.
The difference between the highest price a consumer is willing to pay and the actual price he pays is the consumer surplus.
Formula for Consumer Surplus:
CS = 1/2 * Q * (Pmax - P)
Where,
CS is Consumer Surplus
Q is the quantity
Pmax is the maximum price a consumer is willing to pay for that quantity.
P is the actual price paid by the consumer.
We know the formula for demand is P = a - bQ
So,
2000 - 0.12z - 1.0122z = P
We have Q = 100.
So, P = 2000 - 0.12(100) - 1.0122(100)
P = $1886.78
Let's substitute the values in the formula of Consumer Surplus:
CS = 1/2 * Q * (Pmax - P)
CS = 1/2 * 100 * (2000 - 1886.78)
CS = 1/2 * 100 * (113.22)
CS = $5661
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What is the marginal revenue and marginal cost for this diagram?
What type of market is this? Explain your answer
Answers
Marginal revenue :
2060120200300420560Marginal cost :
108210192640It is a Monopolistic market structure because marginal revenue is greater than the marginal cost.
Marginal Revenue is the increase in the revenue by selling one extra product in the market. It is calculated by the Change in revenue divided by the change in output.
Marginal cost is the change in cost by producing one extra unit of output. It is calculated by a change in cost divided by the change in units.
Monopolistic market structure is where there are multiple companies producing similar products in the market.Example for monopolistic structure can be a grocery store.
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Question 6 of 10
Which of the following speeds will produce lowest miles per gallon?
A. 75 mph
B. 45 mph
C. 85 mph
D. 55 mph
Answers
A negative net present value indicates that the project’s return is ________.
Answers
A negative net present value indicates that the project’s return is net loss
What is a net present values?A net present values is a total sum of money that is currently available. It may be in terms of assets or revenue generated.
When there is a negative net present value, it means the revenues generated is lower that the cost of a project. This invariably leads to a loss for a particular company.
Hence a negative net present value indicates that the project’s return is net loss
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okay y'all so I'm just starting a business I make lollipops and I've been just doing this since this summer and I got everything I want but I still can't seem to find a right name for my business , so I guess what I'm asking is if anyone can give me some ideas I would love to hear what kind of names you guys come up with ? because I really don't know what to name it .
Answers
SEARCH WHAT IT TAKES TO BE A GREAT LEADER!!!!!!!!!!!!!
Torres says that many of us “carry this image of this all-knowing superhero who stands and commands and protects his followers”. She also says this is somewhat outdated. Do you agree? Why or why not? Describe what image comes to mind for you when you think of a great leader.
Answers
Answer:
I agree, because I want to lead other and not to be a follower. I think that a leader is a protector, and leads others to the right direction.
Explanation:
I agree with Torres because I also want to be a leader not follower. A great leader is one who is kind, protective and humble.
What defines a great leader?An effective leader knows what it will take to achieve their team's objectives and has a common vision that is in line with their fundamental beliefs.
They lead, manage, and encourage their teams to work imaginatively and self-assuredly towards that common goal. A leader gives their team members the tools they need to embrace their own individual leadership traits and act with passion and independence. Additionally, they encourage and motivate employees to continue making long-term progress and showing enthusiasm for teaching their objectives.
Therefore, I agree with Torres sayings and a great leader should be protective and humble.
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Which of the following scenarios is an example of the evaluation of alternatives step of the consumer decision-making process?
Mishael is asking her friends which tablets they like and doing some online research to see in which tablets she might be interested.
Mishael recognizes that she needs a new tablet because her old one is broken.
Mishael chooses the tablet that has the most features she wants.
I am Unsure
Mishael has narrowed down her new tablet choices to two different options and is weighing the pros and cons of each tablet that she is considering buying.
Answers
It involves comparing the features, specifications, prices, and other relevant factors to make an informed decision about which tablet to purchase.
The scenario that best represents the evaluation of alternatives step of the consumer decision-making process is: Mishael has narrowed down her new tablet choices to two different options and is weighing the pros and cons of each tablet that she is considering buying. During the evaluation of alternatives step, consumers assess different options or brands to determine which one best meets their needs and preferences. Mishael's consideration of two different tablets and the process of weighing the pros and cons aligns with this step. Tablets are portable computing devices that typically feature a touchscreen interface and offer functionality similar to smartphones and laptops. They are larger than smartphones but smaller than laptops, providing a balance between portability and screen size. Tablets offer a range of features and capabilities, making them versatile devices for various tasks. Some common features of tablets include web browsing, email access, social media integration, multimedia playback, gaming, and access to mobile apps. They often have built-in cameras for capturing photos and videos, and many models support stylus input for drawing or note-taking.
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Three-strikes laws will be enforced and longer sentences imposed only if hun dreds of new prisons are built, and that will happen only if taxes are increased
Answers
The statement suggests a conditional relationship between three-strikes laws, the construction of new prisons, and tax increases. It implies that the enforcement of three-strikes laws and the imposition of longer sentences are contingent upon the construction of new prisons. Furthermore, the construction of these prisons is dependent on tax increases.
In many jurisdictions, three-strikes laws are designed to impose harsher penalties, such as longer sentences or mandatory life imprisonment, on individuals who have been convicted of multiple serious offenses. The underlying premise of such laws is to deter repeat offenders and protect public safety.
The statement suggests that for three-strikes laws to be effectively enforced and longer sentences imposed, there needs to be an adequate capacity to accommodate the increased number of inmates. This would require the construction of new prisons to house these individuals.
However, building new prisons is a costly endeavor. The statement implies that the funding necessary for constructing these prisons would come from tax increases. It suggests that without the additional revenue generated through tax increases, the construction of new prisons would not occur, potentially hindering the enforcement of three-strikes laws and the imposition of longer sentences.
It's important to note that the statement presents a specific viewpoint or perspective on the relationship between three-strikes laws, prison construction, and tax increases. The implementation and effectiveness of these policies can vary across different jurisdictions and are subject to ongoing debates and discussions regarding their impact on crime rates, rehabilitation, and the criminal justice system as a whole.
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When used together correctly, verbal and nonverbal communication can convey a rich and multilayered communication experience.
A. True
B. False
Answers
It is completely appropriate to mention that verbal and nonverbal communication can convey a rich and multilayered communication experience, when used correctly. Therefore, the option A holds true.
What is the significance of verbal and non-verbal communication?Verbal communication can be referred to or considered as the form of communication that involves the usage of words to speak and communicate, whereas, non-verbal communication refers to as the use of actions or gestures to communicate.
Therefore, the option A holds true and states regarding the significance of verbal and non-verbal communication.
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This is my last question plzzzz get it right
Museum curators are in a tourism career.
A. True
B. False
Answers
Answer:
false
Explanation:
A company purchases a piece of machinery. This machinery is now the company's _____.
A. asset
B. liability
c. equity
D. capital
Answers
When a company purchases a piece of machinery, the machinery becomes the company's A. asset.
What is an asset?An asset is a resource owned or controlled by a business or an economic entity, which produces value or more resources.
Assets can be classified into three classes, and they generally fall into the following categories:
CurrentNon-currentPhysicalIntangibleOperatingNon-operating.Thus, the machinery does not become a liability, equity, or capital but an asset.
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Businesses are expected to demonstrate ethical behavior _____.
Answers
Businesses are expected to demonstrate ethical behavior B. even when government regulations do not apply.
Unethical conduct can be defined as movements that might be against social norms or acts which are taken into consideration as unacceptable to the general public. Ethical behavior is the exact opposite of unethical behavior. Moral conduct follows the general public of social norms and such movements are ideal for the general public.
Ethical behavior is simpler for a man or woman than it is for an organization. Businesses have many individuals with differing reviews, values, and ideals. So, the process is to make certain an enterprise is ethical. The solution is—anyone.
Enterprise ethics enhances the law with the aid of outlining suited behaviors beyond government management. Corporations set up business ethics to sell integrity among their personnel and gain consideration from key stakeholders, consisting of buyers and purchasers.
Disclaimer: The question is incomplete. Please read below to find the missing content.
Question: Businesses are expected to demonstrate ethical behavior _____.
A. only when required by government regulation
B. even when government regulations do not apply
C. only when required by a contract
D. except when it conflicts with corporate culture
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On December 31 of the current year, Plunkett Company reported an ending inventory balance of $215,000. The following additional information is also available:Plunkett sold and shipped goods costing $38,000 to Savannah Enterprises on December 28 with shipping terms of FOB shipping point. The goods were not included in the ending inventory amount of $215,000.Plunkett purchased goods costing $44,000 on December 29. The goods were shipped FOB destination and were received by Plunkett on January 2 of the following year. The shipment was a rush order that was supposed to arrive by December 31. These goods were included in the ending inventory balance of $215,000.Plunkett's ending inventory balance of $215,000 included $15,000 of goods being held on consignment from Carole Company. (Plunkett Company is the consignee.)Plunkett's ending inventory balance of $215,000 did not include goods costing $95,000 that were shipped to Plunkett on December 27 with shipping terms of FOB destination and were still in transit at year-end.Based on the above information, the amount that Plunkett should report in ending inventory on December 31 is:_____________A. $194,000B. $209,000C. $200,000D. $171,000E. $156,000
Answers
The amount that Plunkett should report in ending inventory on December 31 is: E. $156,000.
Ending inventoryUsing this formula
Ending inventory= Ending inventory balance - FOB destination goods purchased - Goods being held on consignment
Let plug in the formula
Ending inventory= $215,000 - $44,000 - $15,000
Ending inventory= $156,000
Therefore the correct option is E.
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