Answer:
Since the opening price is set so low, potential buyers will think that their total consumer surplus is very large. For example a consumer may be willing to pay $40 for an iPod but since the price is $1 his total consumer surplus is $39, so he will tempted to offer higher bids which eventually lead to a higher final price.
Answer:
Explanation:
We don't have enough information to calculate the exact effect on the net operating income. For example, we will need the selling price and unitary variable costs. But we can calculate the effect on the fixed costs and selling variable costs.
Savings in fixed costs= $22,000
Increase in total variable costs= 13* 2400 units= $31,200
To decide whether it is convenient or not we need the information previously stated.
Answer:
New target price is $ 180.
Explanation:
This question requires us to calculate the new target price. The detail calculation is given below.
Current price = Full cost + target income
Current price = $ 200 + $ 40
Current price = $ 240-A
New Price = A * (75%)
New price = $ 180
(new price is 75% of current price)
Answer: It is B. AlA
Explanation:ALA is open to all architects and professions related to architecture. Our members hold individual memberships and specialize in all types of architecture.
