Answer:
Break even units = 858 adapters.
Explanation:
Revised selling price = $24 per adapter
Variable cost = $17 per adapter
Contribution per adapter = $24 - $17 = $7
Provided fixed cost = $6,000
Break even point in units =
= $6,000/$7 = 857.14
Since the unit cannot be rounded off downwards, we have
Final Answer
Break even units = 858 adapters.
Answer:
inelastic
Explanation:
when we are measuring hte price elasticity of demand (PED), we calculate it by dividing the ]% change in quantity by the % change in price.
- If the price of a product increases by 1%, and the quantity demanded changes in a smaller %, the PED is < 1, so it is inelastic.
- If the price of a product increases by 1%, and the quantity demanded changes in a larger %, the PED is > 1, so it is elastic.
- If the price of a product increases by 1%, and the quantity demanded changes in same 1%, the PED is = 1, so it is unit elastic.
EOQ stands for Economic Order Quantity. It<span> is the order quantity that minimizes the total holding costs and ordering costs.</span><span>
The difference between the basic EOQ model and the production order quantity model is that </span>the production order quantity model does not require the assumption of instantaneous delivery.
Answer:
Option C is correct
Explanation:
Because of the steep differential in the price would psychologically push the runners to run faster in order to earn the highest price.
Answer:
A. Quick Change's profit will increase while Fast Change's profit will fall.
Explanation:
Initially, both Quick Change and Fast Change have 4700 customers and the revenue per customer is $15. The total revenue for both businesses is,
The salary expense of Quick change is fixed at 47000. Thus, Quick Change's profit, initially, is:
The Salary expense of Fast Change is variable as it is calculated on the number of customers served at $10 per customer. So, Fast Change's initial profit is,
- 70500 - (10 * 4700) = 23500
When the number of customers change and Quick change gains 1000 more customers and reduced its price to 13, the new revenue and profit for Quick change will be,
- Revenue = 13 * 5700 = 74100
- The salaries expense is fixed so it will stay 47000
- Profit = 74100 - 47000 = 27100
- Thus the profit of Quick Change will increase to 27100 from 23500.
The new revenue and profit of Fast Change will be,
- Revenue = 15 * 3700 = 55500
- The new salary expense will be = 10 * 3700 = 37000
- The new profit will be = 55500 - 37000 = 18500
So Quick Change's profit has increased while Fast Change's profit has fallen.