Answer: The Demand should be in elastic
Explanation:
Peacock hotel rooms are a normal good and they have a negative price elasticity of demand, meaning a decrease in price of hotel rooms per night will increase quantity of hotels rooms demanded for Peacock.
Peacock is considering decreasing Prices to $ 175 per unit, for this decrease in Prices to lead to a decrease in total revenue, The demand for Peacock hotel rooms should be inelastic. When the demand for Peacock hotel rooms is inelastic a decrease in price to $ 175 will lead to a small change in the quantity of hotel rooms demanded for Peacock which will then lead to a decrease in Total Revenue.
Answer:
B) plan 1 : worker earning y = x - 0.14 , unit labor = 
plan 2 : worker earning y = 0.5x + 0.5, unit labor = (0.5x + 0.5) / x
C) At 128%
D ) plan D IS PREFERABLE
Explanation:
In the first case Benefits are split : 30% to worker , 70% to company ( up to 120% ) performance
In the second case benefits 50% go to the worker and 50% go the company
B) The equations for worker earnings and normalized unit labor costs for each scheme
Plan 1 :
y ( percentage earning of worker ) = 1
unit labor cost = Y / 1
y = 0 - 30
unit labor = 0.3 / x
y = x - 0.14 therefore unit labor =
plan 2 :
y ( percentage earning of worker ) = 1, y = 0.5x + 0.5
unit labor cost : Y / 1 = (0.5x + 0.5) / x
C ) The point at which the two plans break even
0.5x + 0.5 = x - 0.14
0.5 + 0.14 = x - 0.5x
0.64 = x(1 - 0.5 )
x = 0.64 / 0.5 = 1.28 = 128%
D) The company would prefer plan 1
Answer:
The answer is $26,900
Explanation:
The interest payment on $175,000 principal is:
8% x $175,000
$14,000
At the end of each year, both principal and interest payment will be paid.
The total payment for December 31, Year 1 is $40,900. Meaning this contains both the principal and interest payment.
So in the light of the above, the principal out of this money will be:
Total amount paid minus interest paid.
$40,900 - $14,000
=$26,900
Answer:
the dividend paid to preferred stockholders and paid to common stockholders is $21,000 and $2,000 respectively
Explanation:
The computation of the dividend paid to preferred stockholders and paid to common stockholders is shown below:
For preferred stockholders
= (2,000 × 7% × $50) × 3 years (2019,2020 and 2021)
= $7,000 × 3 years
= $21,000
And, for common stockholders
= $23,000 - $21,000
= $2,000
Hence, the dividend paid to preferred stockholders and paid to common stockholders is $21,000 and $2,000 respectively
