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1 year ago

Revenue management methodology can be applied in the case of nonperishable assets.

Business

1 answer:

algol131 year ago

4 0

Revenue management methodology can be applied in the case of nonperishable assets: True

Revenue Management is a disciplined analytics method that predicts customer behaviour at the micro-level in order to maximise revenue growth and improve product availability and price. To put it another way, the main goal is to offer the right product to the right consumer at the right moment at the right price.

Fixed expenses are a part of any business. Regardless of the volume of company activities and the related revenue, they must be paid. Income management may be helpful in this situation since it can make sure that the costs are comfortably covered by preserving a sufficient revenue stream through constantly adjusted pricing and service offers. It leads to the best possible use of the resources at hand, such as the perishable inventory of hotel rooms, to produce the most amount of profit from the business.

To know more about revenue management refer here:

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You are a newspaper publisher. You are in the middle of a one-year rental contract for your factory that requires you to pay $60

Anika [276]

Answer:

If sales fall by 20 percent from 1,000,000 papers per month to 800,000 papers per month, Average Fixed Costs will increase from $1.85 per paper to $2.31 per paper.

Explanation:

The fixed costs mentioned add up to 600,000 + 1,250,000 = $1,850,000 per month

The other costs mentioned (printing cost and delivery cost) are variable with output (per paper).

As fixed costs are the same regardless of output, falling sales will reduce the quantity on which fixed cost are spread (to calculate fixed cost) and thus make average fixed cost increases.

In this case, it increases from 1,850,000/1,000,000 (= $1.85 per paper) to 1,850,000/800,000 (= $2.31 per paper)

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3 years ago

Machine A costs $9,500 and has an annual operating cost of $5,500. Machine B costs $8,000 and has an annual operating cost of $5

Stolb23 [73]

Complete Question:

Machine A costs $9,500 and has an annual operating cost of $5,500. Machine B costs $8,000 and has an annual operating cost of $5,800. Each machine has an economic life of 8 years. What is the annual rate of return the additional investment in machine A?

Answer:

IRR is 11.81%

Explanation:

We have to find the annual rate of return on the additional investment in machine A. The additional investment can also be termed as incremental investment which is $1,500 ($9,500 - $8,000). Furthermore, the additional cost savings of operating machine A is $300 ($5,500 - $5,800). And this cost savings will be during the life span of the machine A.

Now

We can compute IRR, by using Excel as under:

5 0

3 years ago

If a lender wants to yield 5% on a 4.25% fixed rate loan, then what fees should the lender charge?

vodka [1.7K]

The fee that the lender should charge to ensure they get a yield of 5% on a fixed 4.25% loan is 0.75%.

<h3>What is the lender's yield?</h3>

The lender's yield is the implicit interest rate charged to the borrower. The lender's yield can also be described as the internal rate of return for the lender, given the loan's discounted cash flows. The lender's yield is usually annualized, it is quoted as a rate per year.

Thus, for the lender to enjoy a yield of 5% on a 4.25% fixed-rate loan, the lender's fees should include at least 0.75% (5% - 4.25%).

Learn more about the lender's yield at brainly.com/answer expert verified here: brainly.com/question/9028806

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2 years ago

The James River Co. pays an annual dividend of $1.50 per share on its common stock. This dividend amount has been constant for t

Svet_ta [14]

I think the answer is B.
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2 years ago

The difference between the small business owner and the entrepreneur is that the entrepreneur:A. manages the businessB. files ta

Oksanka [162]

Answer:

E. is accurately described by all of the above

Explanation:

The main difference is that the entrepreneurs took at the big picture and are more ideal, innovative and risk-takers and focuses more on the startups and growth and spread of business and attempts to make profits

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2 years ago