Delleate Ltd Has Prepared the Following Purchases Budget All Purchases Are Paid for as Follows: 10% in the |

question 118

Multiple Choice

Delleate Ltd has prepared the following purchases budget:
$$\begin{array} { | l | l | } \hline \text { Month } & \text { Budgeted purchases } \\\hline \text { June } & \$ 69,000 \\\hline \text { July } & 72,500 \\\hline \text { August } & 76,900 \\\hline \text { September } & 78,900 \\\hline \text { October } & 77,200 \\\hline\end{array}$$
All purchases are paid for as follows: 10% in the month of purchase,50% in the following month and 40% two months after purchase.Calculate total cash payments made in October for purchases.

• A) $47,170
• B) $77,930
• C) $38,480
• D) $70,210

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Definitions:

Quantity Demanded

The specific amount of a good or service consumers are willing to buy at a given price, holding other factors constant.

Elasticity Coefficient

A measure that quantifies the responsiveness of the quantity demanded or supplied of a good to a change in one of its determinants, such as price.

Relative Change

The measure of change in a variable relative to its initial value, often expressed as a percentage.

Inelastic

Describes a situation where the quantity demanded or supplied of a good or service changes by a relatively small amount in response to changes in its price.