Exercise 13-5 Determination of income effects from common-size and trend percents LO P1, P2

Common-size and trend percents for Rustynail Company's sales, cost of goods sold, and expenses follow.

Common-Size Percents Trend Percents
2017 2016 2015 2017 2016 2015
Sales 100.0 % 100.0 % 100.0 % 105.4 % 104.2 % 100.0 %
Cost of goods sold 63.4 61.9 59.1 113.1 109.1 100.0
Operating expenses 15.3 14.8 15.1 106.8 102.1 100.0

Determine the net income for the following years. (Enter all amounts as positive values.)

Susie buys two goods - rounds of golf and massages. suppose that the price of a round of golf is $20, and the price of a massage is $30. in a typical week susie will play two rounds of golf, getting 20 units of satisfaction from the second round. she normally buys three massages each week, with the third giving her 30 units of satisfaction. if she were to buy a fourth massage in a week, it would give her 20 units of satisfaction. if the price of massages is reduced to $15, which of the following outcomes might we expect to occur? a) susie would leave her consumption choices unchanged because of diminishing marginal utility in the consumption of massages. b) susie would buy more massages and more rounds of golf, as predicted by the substituion effect. c) susie would buy more massages and fewer rounds of golf, as predicted by the substitution effect. d) susie would buy more massage and fewer rounds of golf, as predicted by income effect.