Ask question

Ask question

All categories

2 years ago

10

Suppose that the total revenue received by a company selling basketballs is $600 when the price is set at $30 per basketball and

$600 when the price is set at $20

1 answer:

NemiM [27]2 years ago

4 0

You would get 20 basketballs at $30 and 30 basketballs at $20.

You might be interested in

For advertising strategies to be effective, they must work within the confines of the overall marketing strategy. T/F

dedylja [7]

Answer:

The correct answer is True.

Explanation:

A marketing strategy helps to create products and services with the best possibilities of obtaining benefits. This is because the marketing strategy begins with market research, taking into account the optimal target customer, what the competition is doing and what trends could be on the horizon.

Using this information, determine the benefit customers want, what they are willing to pay and how you can differentiate the product or service from the competition.

8 0

3 years ago

The major drawback of taking out a loan to start a company is?

steposvetlana [31]

Answer: you have to pay back the loan once you start making money. in general you have to pay back the loan. everyone wants free money.

4 0

2 years ago

LanWan Software earned net sales revenue of $62,000,000 in 2016. Cost of goods sold was $41,540,000, and net income reached $9,

blagie [28]

Answer:

33%

Explanation:

Given that,

Net sales revenue = $62,000,000

Cost of goods sold = $41,540,000

Net income reached the company's highest ever = $9,000,000

Gross profit:

= Net sales revenue - Cost of goods sold

= $62,000,000 - $41,540,000

= $20,460,000

Therefore, the gross profit percentage is calculated by dividing the gross profit by the net sales.

Gross profit percentage for 2016:

= (Gross profit ÷ Net sales) × 100

= ($20,460,000 ÷ $62,000,000) × 100

= 0.33 × 100

= 33%

4 0

3 years ago

Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of production is given by C = 200

irga5000 [103]

Answer:

1. 20 units

2. $600

Explanation:

1. $C = 200 + 2q^{2}$

MC = 4q

Price, P = $80

For maximizing profits,

Marginal cost = Price of the commodity

4q = 80

q = 20 units

$C = 200 + 2q^{2}$

$C = 200 + 2(20)^{2}$

= 200 + 800

= 1,000

2. Profit = Total revenue - Total cost

= (Price × Quantity) - TC

= (80 × 20) - $1,000

= $1,600 - $1,000

= $600

3. We know that the firm in the short run will be produce at a point where total revenue is greater than the total variable cost

Average variable cost = variable cost ÷ quantity

$=\frac{2Q^{2}}{Q}$

= 2Q

MC = 4Q

Here, MC is greater than AVC at any given point.

so in the short run firm will producing short run positive profit.

4 0

3 years ago

Suppose DeepMind Inc. will pay $1.50 per share in dividends next year. The require return on the stock is 10% and its dividends

Brums [2.3K]

Answer:

C. All else being equal, the growth rate of the dividends is greater than 2%

Explanation:

The formula to calculate the fair price of a stock with a constant growth in dividends is as follows,

P = D1 / r-g
Where D1 is the dividend next period
r is the required rate of return
g is the growth rate in dividends
P = 1.5 / 0.1 - 0.02 = 18.75
We are taking 1.5 as D1 as it is the dividend per share DeepMind will pay next year.

So, we will be willing to pay more than 18.75 if the fair price per share today is greater than 18.75. We check all the 3 options.

A. say the required rate is 10.1%

P = 1.5 / (0.101 - 0.02) = 18.52
So if the required rate of return increases from 10%, the fair price per share is falling and we will be willing to pay less than 18.75 per share.

B. P = 1.2 / (0.1 - 0.02) = 15

If D1 = 1.2,the fair price per share will be 15 which is less so we will not be willing to pay more than 15 for such share.

C. Say the growth rate in dividends is 2.1%

P = 1.5 / (0.1 - 0.021) = 18.99
The fair price per share increased to 18.99 if the growth rate in dividend increases by 0.1 percentage point. Thus, C is the correct answer

3 0

2 years ago