Total Expenditure is a term used in the Charities Act 1993
in relation to thresholds for scrutiny of non-company
charity accounts, preparation of annual reports and
submission of annual reports and accounts to the
Consider now a few total expenditure calculations. Total expenditure is calculated as price times quantity.
For example, if the price is 18 cents per minute and the corresponding quantity demanded is 1 million minutes, then total expenditure on Digital Distance telephone services is $180,000 (= $0.18 x 1,000,000).
Alternatively,if the price is 10 cents per minute and the corresponding quantity demanded is 5 million minutes, then total expenditure is $500,000 (= $0.10 x 5,000,000).
Or, if the price is 2 cents per minute and the corresponding quantity demanded is 9 million minutes, then total expenditure on Digital Distance telephone services is also $180,000 (= $0.02 x 9,000,000).
Note that as the price declines from 18 cents to 10 cents, total expenditure increases from $180,000 to $500,000. However, as the price declines further from 10 cents to 2 cents, total expenditure decreases from $500,000 to $180,000. This pattern of increasing then decreasing total expenditure is related to the changing price elasticity of demand on the demand curve.
A worker has time rate of Rs. 15/hr. He makes 720 units of
a component (standard time 5 minutes/unit in a week of 48
hours). His total wages including Rowan bonus for the week
is _____. A. Rs. 792;
B. Rs. 820;
C. Rs. 840;
D. Rs. 864.