PHU LE mpany had the following expenses in ities Expense nager's salary Materials ecurity people salaries aterials used ion on Factory Equipment ions for Sales people tion on Sales ofice copy machines e information above determine the total amount of 14,000 Direct labor 25,000 Advertising Expense 50,000 Property taxes on Factory Equipment 15,000 Property taxes on Sales office 220,000 Factory building repairs 22,000 Sales people's salaries 10,000 Office supplies for Admin office Expense 23,000 Factory Insurance Cost Otal Manufacturing Overhead otal Manufacturing/Product Costs Total Non-Manufacturing/Period Costs $125,200 $520,200 $189,000 mding June 30 records for June 30 for ABC Company Revenue 2,200,000 Raw Materials Purchased in Month 170,000 Direct Labor Cost 40,000 Advertising Expense 25,000 Rent on Factory 40,000 Sales Commissions 40,000 Maintenance Expense on factory Equip 15,000 Supplies for the Factory 10,000 Depreciation on Factory Equipment 25,000 Indirect labor Cost 35,000 Utilities Expense for Factory 15,000 Depreciation on Sales Office Cars 30,000 Raw Mat Work in Process Finished Goods Beginning Inventory 15.000 25,000 30,000 Ending Inventory 20,000 10,000 Prepare the Cost of Goods Manufactured and Cost of goods sold for the month below 10,000 6 R O 0 quantities c cruises up by 15 percent. Which demand is income elastic? Which is income inelastic? Which are normal goods? (12 points) 3. a. The Petco store sells both parakeets and canaries. During January the price of each parakeet was $45. In February the price increased to $50. The store sold 23 canaries in January and 35 in February. Calculate the cross-elasticity of demand. Are parakeets and canaries substitutes? (6 points) b. If the demand for orange juice is inelastic, will an increase in the price of orange juice increase or decrease the revenue orange juice sellers receive? Explain. (4 points) 4. Explain how each of the following events changes the demand for or supply of air travel. (12 points) 11. III. IV. V. VI. Airfares tumble, while long-distance bus fares don't change. The price of jet fuel rises. Airlines reduce the number of flights each day. People expect airfares to increase next summer. The price of train travel falls. The price of a pound of air cargo increases. 5. A city has decided to impose rent controls, and it has established a rent ceiling below the previous equilibrium rental rate for offices throughout the city. How will the quantity of offices lease by building owners change? (4 points)