Answer:
If the price elasticity of demand for apples is 0.6, then a 5.0% increase in the price of apples will decrease the quantity demanded of apples by 3.0%, and apples sellers' total revenue will increase as a result.
Explanation:
Answer:
the target sales in units is 12,000 dinner cruise tickets
Explanation:
For FunTime Cruiseline to reach its target operating income of $30,000, it must first break -even then make a profit to the extent of $30,000.
This statement is presented in the formula below :
Target Sales - Units = (Fixed Cost + Target Profit) / Contribution per Unit
= ($210,000+$30,000)/( $50 - $30)
= $ 240,000/ $ 20
= 12,000
Answer:
a. 9.43%
Explanation:
The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
IRR can be calculated using a financial calculator.
Cash flow in year zero = −$1,250
Cash flow each year from year one to five = $325
IRR = 9.43%
To find the IRR using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
I hope my answer helps you