The aggregate expenditures model assumes flexible prices true or false

WinterDreams operates a Rocky Mountain ski resort. The company is planning its lift ticket pricing for the coming ski season. In

Kitty [74]

Answer:

a. Would Mountain Point emphasize target pricing or cost-plus pricing? Why?

They emphasize cost plus pricing because the investors are seeking a desired rate of return on their investment and they do it by adding the desired profit margin to their costs.

b. If other resorts in the area charge $66 per day, what price should Mount Snow charge?

$75.50 in order for them to generate the required ROI. Since the resort has a very good reputation, it can charge a higher price than its competitors.

Explanation:

company's assets = $115,000,000

expected return on investment = 16%

fixed costs = $35,600,000

number of customers = 800,000

variable costs = $8 per customer x 800,000 = $6,400,000

total costs = $42,000,000

total cost per client = $42,000,000 / 800,000 = $52.50

desired profit = $115,000,000 x 16% = $18,400,000

desired profit per client = $18,400,000 / 800,000 = $23

price per ticket = $75.50

8 0

3 years ago

What term describes the situation where an employer changes group plan coverage to another insurer, and all employees eligible f

djverab [1.8K]

Answer: No loss, no gain

Explanation:

When an employer changes group plan to another insurer, all employees under the previous coverage would be eligible to gain under the new plan without any delay for probation.

3 0

3 years ago

You deposit $5,000 per year at the end of each of the next 25 years into an account that pays 8% compounded annually. How much

Volgvan

Answer:

The correct answer is A. $18,276

Explanation:

First you have to calculate how much you'd end up having at the end of the 25 years period in your savings account.

You calculate the total amount saved for each year, using the formula:

$S_{n} = S_{n-1} *(1+r)+D$

Where

$S_{n}$ is the total amount in the savings account for this period.

$S_{n-1}$ is the total amount in the savings account from the previous period.

$r$ is the interest rate.

$D$ are the annual deposits being made into the savings account.

Therefore for the first year you'd do:

$S_{1} = S_{0} *(1+r)+D$

$S_{1} = 0*(1+0.08)+5000=5000$

For the second year:

$S_{2} = S_{1} *(1+r)+D$

$S_{2} = 5000*(1+0.08)+5000=10400$

And so on. You can help yourself calculate the value of this series using programs like Excel.

I have attached an Excel file that has a table with the savings values for each of the 25 years.

So, the 25th year you’ll have $365,529.70 in your savings account. Now you simply divide this number by 20 (that will be the number of years you’ll be withdrawing the same dollar amount from your savings account):

$Withdrawals = 365,529.70/20=18,276.485$

In conclusion, you’d be able to withdraw $18,276.485 each year for the following 20 years after the 25th deposit, if all withdrawals are the same dollar amount.

Download xlsx

3 0

3 years ago

Outsourcing strategies: Select one: a. Carry the substantial risk of raising a company’s costs. b. Carry the substantial risk of

Simora [160]

Answer:

The correct answer is letter "C": Involve farming out value chain activities presently performed in-house to outside specialists and strategic allies.

Explanation:

Outsourcing refers to a practice that companies engage in to take their operations abroad to lower production costs and avoid being subject to stiff regulations that might harm their profits. <em>Under this approach, firms value chain activities handled in their original country are taken to countries where the manufacturing and labor costs are much lower with and relatively similar qualified workforce and suppliers.</em>

Outsourcing might harm the employment rate in the domestic country of the company handling operations abroad but could benefit the outsourced nation by introducing job opportunities where there may not even be basic labor conditions.

8 0

3 years ago

To have an effective marketing exchange process, you must make sure it involves a customer, a provider, a product, and a:

Travka [436]

Answer:

Transaction

Explanation:

Marketing exchange process refers to a process wherein two or more individuals buy or sell a good. Exchange refers to the consideration which is paid in return for the product i.e money.

For any exchange to take place it is essential that the good is transacted.

Customer would be the one who requires the product or the ones who create a want.

A Provider is the one who satisfies a want or say the one who makes the product available.

Product is the bundle of utilities or attributes which satisfies a want.

Transaction is effected when the buyer gets the product and the seller gets paid for the product.

7 0

3 years ago