Answer:
The net operating income increases by $11,000.
Explanation:
Data provided
Sales 3,000 units
Sales Price $70 per unit
Variable Cost $50 per unit
Fixed Cost $25,000
We can calculate the contribution margin as:
Contribution margin = sales price - variable cost = (70-50) = 20
The net operating income can be defined as:
According to the changes proposed in the problem
Contribution margin = 20 * (1+0.1) = 22
Fixed cost = 25,000 * (1-0.2) = 20,000
The new net operating income is:
Then
With these changes, the net operating income increases by $11,000.
Answer:
Greater than marginal cost.
Explanation:
A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. It is also known as oligopoly, wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes. Any individual that deals with the sales of unique products in a monopolistic market is generally referred to as a monopolist.
Also, a single-price monopolist is an individual or seller that sells each unit of its products to all its customer at the same price. Hence, a single-price monopolist doesn't engage in price discrimination among its customers (buyers).
At the level of output at which a single-price monopolist maximizes profit, price is greater than marginal cost because the marginal revenue would be below the demand curve.
However, if the marginal cost is greater than the price, the monopolist will not make any profit.
<em>In a nutshell, profit maximization for the single-price monopolist occurs at the point where marginal cost is equal to marginal revenue (MC = MR) on the graph of price (P) against quantity (Q) of goods. </em>
Answer:
$28,007,000
Explanation:
Number of rooms = 200
Daily operating expenses for one room = $20,000 + Cleaning fee
Daily operating expenses for one room = $20,000 + $5
= $20,005
One week period = 7 days
Daily operating expenses for 200 rooms = Daily operating expenses for
one room X Number of rooms
= $20,005 X 200
= $4,001,000
Operating expenses for one-week period = Daily operating expenses for
200 rooms X 7
= $4,001,000 X 7
= $28,007,000
Answer:
B) experimentation.
Explanation:
Experimentation is the process by which a business strategy is tested on a smaller scale before it is adopted on a wider scale. A business process or product can be introduced to a particular test group and based on the results extrapolated to other areas.
In this scenario Cami the marketing manager for a regional furniture maker monitors each marketing campaign on overall sales. She also tries novel promotional offers to first time customers in a bid to test efficacy. This is use of experimentation.
