1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
grigory [225]
2 years ago
6

The postal service of St. Vincent, an island in the West Indies, obtains a significant portion of its revenues from sales of spe

cial souvenir sheets to stamp collectors. The souvenir sheets usually contain several high-value St. Vincent stamps depicting a common theme, such as the life of Princess Diana. The souvenir sheets are designed and printed for the postal service by Imperial Printing, a stamp agency service company in the United Kingdom. The souvenir sheets cost the postal service $1.15 each. St. Vincent has been selling these souvenir sheets for $10.00 each and ordinarily sells about 61,000 units. To test the market, the postal service recently priced a new souvenir sheet at $11.00 and sales dropped to 51,000 units.
Business
1 answer:
klemol [59]2 years ago
8 0

Answer:

It is more profitable to maintain the price at $10

Explanation:

Giving the following information:

The souvenir sheets cost the postal service $1.15 each. St. Vincent has been selling these souvenir sheets for $10.00 each and ordinarily sells about 61,000 units. To test the market, the postal service recently priced a new souvenir sheet at $11.00 and sales dropped to 51,000 units.

We need to calculate the actual revenue and decide whether it is more convenient to increase the price or leave it as it is.

Actual revenue= 61,000 units* (10 - 1.15)= $539,850

New revenue= 51,000 units*(11 - 1.15)= $502,350

It is more profitable to maintain the price at $10

You might be interested in
Taylor needs a natural resources in his venture to make his enterprise possible. Which of the following isn't considered a capit
Rina8888 [55]

<u>Answer:</u>

<em>The factors of production typically include land, labor, capital, entrepreneurship, and the state of technological progress.</em>

<u>Explanation:</u>

In economics, capital typically refers to money. But money is not a factor of production because it is not directly involved in producing a good or service.

Instead, it facilitates the processes used in production by enabling entrepreneurs and company owners to purchase capital goods or land or pay wages. For modern mainstream economists, capital is the primary driver of value.

8 0
2 years ago
We typically hear of the gains from trade coming through specialization wherein each nation produces more of and exports that go
Brut [27]

Answer:

Generally theoretical models work only in theory. E.g. perfect competition models exist in theory but no market is really a perfect competition market.

The Ricardian model or the H-O model, or other trade models make the mistake of assuming that resources can be allocated at will and almost immediately, e.g. a fisherman can immediately become an engineer and start developing apps. Or a farmer that produces corn or rye (very popular examples) can suddenly start working at a factory producing bluejeans.

In real life, it doesn't happen. Also, trade models never consider natural trade barriers and extra costs related to trade. E.g. it is not the same to sell $10,000 worth of corn (you need a very large truck) than selling $10,000 worth of jeans (all you need is a small delivery van). In real life, trade is not simple, it is actually extremely complicated.

E.g. everyone knows that manufacturing goods in America is not efficient, at best companies can be less inefficient, but no manufacturing company in America is really efficient if we compare them to foreign companies. Even people who work in manufacturing industries know this, but they want to continue working in them. They want the companies to keep producing in America and they want to keep their jobs. Not everyone in America has a college degree in computer programming, finances, is able to design robots, or is a doctor, etc.

In real life, efficient industries have to exist alongside inefficient industries, and the whole economy suffers from it. But it is unavoidable. In the long run, the economy will eventually shift resources to more efficient industries,  but it takes a long time, and a lot of people and companies will be against it. E.g. every year there are less shoe manufacturers in America, and eventually sometime in the future there will be none.

7 0
3 years ago
_____1. The price paid for the use of someone else’s property.
jonny [76]
The correct term to fill in the blank would be rent. The price paid for the use of someone else's property is called rent. It is a periodic and fixed amount of money paid by one that uses the possession of one.
7 0
3 years ago
During the current year, Morgan, Inc., had net income of $657,000. Morgan also recorded $203,000 in deprecation expense and had
Paraphin [41]

Answer:

$823,000

Explanation:

To determine the net cash provided by operating activities using the indirect method we can use the following formula:

net cash flow = net income + depreciation expense - accounts receivable increase + inventory decrease - accounts payable decrease

net cash flow = $657,000 + $203,000 - $28,000 + $12,000 - $21,000 = $823,000

If accounts receivable decreased, then it would be added.

If inventories increased, then it would be subtracted.

If accounts payable increased, then it would be added.

6 0
3 years ago
On January 1, 2021, Perez Co. issued at par $10,000 of 6% bonds convertible in total into 1,000 shares of Perez's common stock.
marusya05 [52]

Answer:

EPS = $4.50

diluted EPS = $2.46

Explanation:

no option is correct since EPS = $4.50, and the rest of the options are all higher amounts. Diluted EPS are always smaller than EPS.  

common stock outstanding = 1,000 stocks

bonds shares (diluted) = 1,000 stocks

net income = $4,500

bond interest = $10,000 x 6% x (1 - 30%) = $420

diluted earnings per share = ($4,500 + $420) / (1,000 shares + 1,000 shares) = $4,920 / 2,000 shares = $2.46

7 0
3 years ago
Other questions:
  • Brandon Consulting Company is headquartered in Atlanta and has branch offices in Nashville and Birmingham. Brandon uses an activ
    11·1 answer
  • If butter and margarine are substitute goods, an increase in the price of butter is most likely to cause:
    15·1 answer
  • What is profit?
    14·1 answer
  • The following is a listing of some of the balance sheet accounts and all of the income statement accounts for Orange Company as
    5·1 answer
  • The price and quantity determined in a market when the supply equals the demand, the market is in the state of
    13·1 answer
  • An analysis of the accounts of Roberts Company reveals the following manufacturing cost data for the month ended June 30, 2017 I
    5·1 answer
  • What is the present value of $1,400 a year at a discount rate of 8 percent if the first payment is received 7 years from now and
    12·1 answer
  • As a Cost and Management Consultant in the banking industry in Ghana, one of your highly esteemed clients, a top tier banking in
    8·1 answer
  • A string of length 160cm is cut in to 2 pieces, in the ratio 3:5 <br>find the length of each piece​
    10·1 answer
  • In a monopolistic competitive industry, a. there are significant barriers to exit. b. there are few sellers. c. there are signif
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!