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Andrews [41]
3 years ago
9

You have​ $675 today which is enough to buy 375 bottles of Diet Pepsi. If the price of Diet Pepsi is expected to increase by​ 4%

over the next​ year, what approximate nominal rate would you have to earn to be able to buy 400 bottles of Diet Pepsi next​ Year?
Business
1 answer:
slavikrds [6]3 years ago
8 0

Answer:

Nominal growth= 10.93%

Explanation:

Giving the following information:

You have​ $675 today which is enough to buy 375 bottles of Diet Pepsi. The price of Diet Pepsi is expected to increase by​ 4% over the next​ year.

First, we need to find the dollar amount necessary to buy 400 bottles:

Unitary cost= 675/375= $1.8

New unitary cost= 1.8*1.04= $1.872

Total cost= 400bottles*1.872= $748.8

Now we can calculate the nominal rate of growth:

r= [(748.8 - 675)/675]*100= 10.93%

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The crossover point is that production quantity where: _________
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<h3>What is crossover point?</h3>

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b. fixed costs of a process are equal to its variable costs.

c. total costs equal total revenues for a process.

d. total costs for one process equal total costs for another process.

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