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barxatty [35]
3 years ago
6

To generate leads for new business, Gustin Investment Services offers free financial planning seminars at major hotels in Southw

est Florida. Gustin conducts seminars for groups of 25 individuals. Each seminar costs Gustin $3700, and the average first-year commission for each new account opened is $5300. Gustin estimates that for each individual attending the seminar, there is a 0.01 probability that he/she will open a new account.
Required:
a. Determine the equation for computing Gustin’s profit per seminar, given values of the relevant parameters.
Business
1 answer:
larisa86 [58]3 years ago
6 0

Answer:

See Explanation section

Explanation:

We know,

Profit = Sales - Expenses

To find the total seminar profit, we have to determine the number of newly opened accounts. As it is binomial distribution, we have to make an equation to reach out the seminar profit -

Therefore, the profit equation = (new opened account × Sales commission) - Fixed seminar costs

Since we do not know how many attended open account, the profit equation of seminar = (New open account × $5,300) - $3,700

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Answer:

B. Controllable costs

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In other words, controllable costs are those costs or expenses that can be influenced by those who are saddled with the responsibilities of incurring them.

5 0
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Taxicab fares in most cities are regulated. Several years ago taxicab drivers in Boston obtained permission to raise their feres
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Solution:

Let's start by assuming that the taxi ride demand is extremely elastic, to the extent that it is vertically sluggish! If the cabbies raise the fair price by 10% from 10.00 per mile to 11.00 per kilometre, the number of riders remains 20.

Total income before fair growth= 20* 10= 200.

Total income following fair growth = 11* 20= 220.

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Therefore, the assumption in this situation is that the cab drivers think the taxi driving requirement is highly inelastic.

The demand curve facing the drivers of the cab is still inelastic, but not vertically bent.

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Total revenue before fair growth is 20* 10= 200

The gap between revenue and fair growth is 19* 11= 209

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7 0
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DIA [1.3K]

Answer:

top-of-mind awareness

Explanation:

the highest level of awareness, occurs when customers mention a specific brand name first when they are asked about a product or service

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Answer:

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Answer:

Economics is the study of how societies use scarce resources to produce valuable commodities and distribute them among different people

hope this helps

Explanation:

4 0
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