Answer: A) several substitutes; necessity; loyal Coca-Cola customers
Explanation:
SEVERAL SUBSTITUTES
Substitute goods are goods that are similar and so can be used in place of the other. Generally when the price of a good with a substitute increases, people switch to their substitutes if their price remain the same. The demand for vanilla coke dropped when it's prices rose signifying that people switched to the substitutes.
NECESSITY GOODS
These are also known as normal goods and increase in relation to income. That is if income increases, they increase as well but at a lower rate. Since we are assuming that the income of coke loyalists did not change but rather the prices rose and the demand reduced at a rate less than the increase in price we can safely assume that vanilla coke is a necessary good to Coca-Cola loyalists.
LOYAL COCA-COLA CUSTOMERS
Because the reduction in demand for Vanilla coke amongst Coca-Cola loyalists is less than the increase in price as opposed to the general public where the reduction in demand is more than the increase in price, we can say that an increase in total revenue is only coming from the loyal coke customers.
Answer:
The correct answer for option (a) 0.98 and 1.04 and for option (b) is Boulder Location.
Explanation:
According to the scenario, computation of the given data are as follows:
A). We can calculate the present value index by using following formula:
Present value index = Total present value of net cash flow ÷ Amount to be invested
Present value index Ft. Collins = 607,600 ÷ 620,000 = 0.98
Present value index Boulder = $624,000 ÷ $600,000 = 1.04
Fort Collins has 0.98 present value index and boulder has 1.04 present value index.
B). Boulder location should be chosen according to the analysis. Because boulder has the 1.04 present value index which is greater than 1 while fort Collins has value less than 1.
Answer:
The percentage decrease in utilization is 83.33%
Explanation:
According to the data, we have the following:
Coefficient of variance, m = 3
Arrival rate, ra = 45 per hour
Service rate, re = 18 per hour per lane
Therefore, in order to calculate the percentage decrease in utilization when one more checkout lane is added to the system, we have to use the following formula:
So, percentage decrease in utilization = ra / (m.re)
= 45 / (3*18) = 0.833
The percentage decrease in utilization is 83.33%
Answer:
c
Explanation:
the uneven ground conceals things stuck between the gravel.
Answer: $7000
Explanation:
cost of ski boots = $8000
merchandise inventory at the beginning of October = $2000
merchandise inventory at the end of October = $3000
So,
Budgeted cost of goods sold for October = cost of ski boots + inventory at the beginning - inventory at the end
= 8000 + 2000 - 3000
= $7000
∴ The budgeted cost of goods sold for October is $7000.
