Initial price, P₀ = $1.25
Initial demand, Q₀ = 30 million
New price, P₁ = $1.75
New demand, Q₁ = 35 million
By definition, price elasticity is

η = (5/65)/(0.5/3)
= 0.4615
Answer: η = 0.46 (nearest hundredth)
This means that greater demand makes it possible to increase the price. Usually, this is not the case because lowering the price increases sales.
Answer: d. the corporate culture envrionment
Explanation:
Answer:
Company's contribution margin ratio is <u>70.59%</u>
Setting your priorities could be a primary third desicion when it comes to making financial decisions.
Answer:
$2,740,251.24
Explanation:
Applying power sizing technique or an exponential model to determine the cost of new boiler.
This model identify the cost variation along with change in capacity or power of the equipment.

Where,
Cb = Cost of new plant
Sa = capacity of new plant
Sb = capacity of old plant
x = cost capacity factor
Therefore,


= 2,000,000 × 1.3701
= $2,740,251.24