Consider the market for Rainbow sandals. Suppose average household income increases from $44 thousand to $61 thousand per year. As a result, the demand for Rainbow sandals increases from 329 to 525. Using the midpoint formula, what is the income elasticity of demand for Rainbow sandals? nothing. (Enter a numeric response using a real number rounded to two decimal places.) In this instance, Rainbow sandals are a normal good. Furthermore, Rainbow sandals are a luxury .

Oerstman, inc. uses a standard costing system and develops its overhead rates from the current annual budget.the budget is based on an expected annual output of 120,000 units requiring 480,000 direct labor hours.(practical capacity is 500,000 hours)annual budgeted overhead costs total $772,800, of which $556,800 is fixed overhead.a total of 119,300 units, using 478,000 direct labor hours, were produced during the year.actual variable overhead costs for the year were $260,400 and actual fixed overhead costs were $555,450.required: 1. compute the fixed overhead spending variance and indicate if favorable or unfavorable.2. compute the fixed overhead volume variance and indicate if favorable or unfavorable.