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grigory [225]
3 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]3 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

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7 0
4 years ago
Suppose you invest semiannually for 25 years in an annuity that pays 5% interest, compounded semiannually. At the end of the 25
bonufazy [111]

Answer:

$354,500

Explanation:

First find the amount invested ie the Present Value as follows :

n = 25 × 2 = 50

i = 5%

P/yr = 2

Pmt = $0

Fv = $500,000

Pv = ?

Using a Financial Calculator to enter the amounts as above, the Present Value is $145,471

Total Interest = Future Value - Present Value

                      = $500,000 - $145,471

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Thus interest is $354,500 (nearest hundred dollars).

7 0
4 years ago
E10-12 The following are selected 2017 transactions of Pedigo Corporation.
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Entries are given.

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Dec 31,2019       No entry                                                0                    

                                  No entry

                         (Considering that goodwill has an                               0

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                         not be amortised.)

Dec 31, 2019      Patent Amortization                           $10,000

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6 0
1 year ago
2.) Which of the following is true? A. The convenience yield is always positive or zero. B. The convenience yield is always posi
charle [14.2K]

Answer:

The correct answer is letter "A": The convenience yield is always positive or zero.

Explanation:

The convenience yield reflects the premium of possessing an asset instead of one of its derivates or contracts. This situation arises in front of inverted markets, where holding the asset itself may bring more profits than purchasing a derivate of the same asset.

<em>The convenience yield tends to be positive or zero because the prices of assets cannot fall below zero. In other words, they are not negative.</em>

7 0
3 years ago
When cell phones were first entering the market, they were relatively large and reception was undependable. All cell phones were
ahrayia [7]

Answer:

<em><u>The correct answer is:  </u></em>Markets evolve toward greater heterogeneity over time.

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The history of cell phones shows a marketing trend that markets evolve towards greater heterogeneity over time.

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8 0
3 years ago
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