Use the Following Information for the Next 2 Questions

question 105

Multiple Choice

Use the following information for the next 2 questions.
TTV Corporation's managers estimate that a 50% increase in price would cause an 80% reduction in the quantity of product sold. Total fixed costs for the product are $5,000 and total variable costs are $4,000, based on production of 400 units. The following values may be useful:
-TTV's price elasticity of demand is

• A) -3.973
• B) -0.252
• C) +0.322
• D) +3.108

Understand the sales cycle and the recognition of revenue, including the effects of sales returns, discounts, and allowances on financial statements.

Understand the stages of moral development and their implications.

Recognize characteristics of different personality types and career orientations.

Identify self-imposed barriers to leadership and strategies for overcoming them.

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Definitions:

Accounts Receivable

Accounts receivable represent the money owed to a company by its customers for goods or services delivered but not yet paid for.

Merchandise

Goods that are purchased for resale at a profit; the main product that a retailer sells.

Sales on Account

Transactions where goods are sold and payment is deferred to a future date; this is typically tracked through accounts receivable.

Beginning Inventory

The value of a company's inventory at the start of an accounting period, before any purchases or sales have occurred.