Table 7-12 -Refer to Table 7-12

question 14

Multiple Choice

Table 7-12
$\begin{array}{|r|c|c|}\hline \text { Price of Book } & \begin{array}{c}\text { Copies Sold at } \\\text { That Price }\end{array} & \begin{array}{c}\text { Total Revenue at } \\\text { That Price }\end{array} \\\hline \$ 14.99 & 100,000 & \$ 1,499,000 \\\hline 9.99 & 174,000 & 1,738,00 \\\hline\end{array}$
-Refer to Table 7-12.Based on the data in the table and using the midpoint formula,between a price of $9.99 and $14.99,the price elasticity of demand for books is

• A) -0.74.
• B) -1.16.
• C) -1.35.
• D) -14.8.

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Definitions:

Machine-hours

A measure of the amount of time a machine is operated, used in calculating manufacturing costs and allocating expenses based on machine usage.

Overapplied Overhead

A situation where the allocated or applied manufacturing overhead cost is more than the actual manufacturing overhead cost incurred.

Underapplied Manufacturing Overhead

A situation where the actual manufacturing overhead costs exceed the overhead allocated to products.

Overapplied Manufacturing Overhead

A situation where the allocated manufacturing overhead costs exceed the actual overhead costs incurred by a company.