The price and quantity of computers that should be produced to maximize the firm’s profits will be $360 and 80 computers.
The demand curve for College Computers is given as (Q) = 800 - 2P where, P = 400 - 0.5Q.
Therefore, the weekly total revenue will be:
= (400 - 0.5Q) × Q
= 400Q - 05Q²
Marginal revenue = 400 - Q
Weekly cost of producing computers will be:
= 1200 + 2Q²
Marginal cost = 4Q
Maximum profit will b earned when MR = MC
Therefore, 400 - Q = 4Q
Collect like terms
4Q + Q = 400
5Q = 400
Q = 400/5
Q = 80
Quantity = 80 units
Therefore, the price will be:
P = 400 - 0.5Q
P = 400 - 0.5(80)
P = 400 - 40.
P = 360
The price is $360.
The weekly total revenue will be:
TR = price × quantity.
TR = 360 × 80
TR = $28800
The total cost will be:
TC = 1200 + 2(80)²
TC = 1200 + 12800
TC = 14000
Therefore, the profit will be:
= TR - TC
= $28800 - $14000
= $14800
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Answer:
This scenario best describes a Sales Promotion
Explanation:
Sales promotion is a strategy that involves reducing the price of products to clear out inventories, attract traffic, and to lift sales temporarily.
It could also be used as a medium to introduce a new product,
Same applies when a large rug store, decide to have a sale.
To achieve the aim of sales promotion, the store manager works with the advertising department to make the public aware of the sale.
A proactive manager also makes provision for enough salespeople to handle the increased customer traffic, and ensure that the manufacturers of the product is able to meet expected consumer demand.
Answer:
Supplies Expense 12500
Explanation:
<em>Bravo Unlimited</em>
<em>Adjustment Entry</em>
Date Particulars Debit Credit
February 29 Supplies Expense 12500
Supplies Account 12500
( Opening bal+ purchases- Ending bal= Expense= 2000+ 12000- 1500= 12500
At the month end Supplies were used for $ 12500 and supplies on hand are $ 1500.
On 2nd Feb the supplies account totalled $ 14000 but $5000 supplies had been expensed so the total amount of supplies used up is calculated by (Opening bal+ purchases- Ending bal= Expense) the formula given above.
Firm b pays a constant dividend (D0) = $9.50
Number of years (N) = 11 years
Rate of return on the stock ( R ) = 11%
The share price of the stock (P0) = Present value of dividend for 11 years at 11%
P0 = D0*PVIFA (k%,n)
P0 = $9.50*PVIFA(11%,11)
P0 = $9.50*6.20625
P0 = $58.96
Hence, the price of the stock is $58.96
