1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
seraphim [82]
3 years ago
8

Suppose that JVC is trying to decide how to price a new stereo system composed of a receiver, CD player, and speakers. The compa

ny's economists have estimated that two different groups will purchase these products: students and club owners. The economists analysis suggests that the total market for its brand of stereos consists of 10,000 students and 50,000 club owners. In addition, it is estimated that the maximum amount each group will pay for each stereo component is as follows:
Group Receiver CD Player Speakers
Students $250 $150 $100
Club owners $200 $75 $250
Required:
a) Suppose that JVC markets the receiver, CD player, and speakers are sold separately and together. What prices should JVC charge to maximize revenues?
Business
1 answer:
Kisachek [45]3 years ago
5 0

Answer:

The answer is "Receivers= 200, CD player= 75,  Speaker= 250 , and Combined ( bundling )= 500".

Explanation:

As a Receiver    

If the value of P = 250, purchase only by students then,  

TR = 250 × 10,000 = 2,500,000  

If the value of P = 200, buy by  both forms  

TR = 200×(60,000) = 12,000,000  

And higher TR,

P = 200,  

For the receivers fee of P = 200  

Player CD  

Where the value of P = 150  

TR = 150 × 10,000 = 1,500,000  

If P = 75,  

TR = 75×(60,000)  

Superior TR with P = 75,  

Rapporteurs,  

If P = 100, buy both

TR = 6,000,000

TR= 100 × (60,000)  

If P = 250, then buy only the club owner

TR = 250 × 50,000

TR= 12,500,000    

So taller TR with P = 250  

Then the will to pay combined  

250 + 150 + 100 = 500 For students  

For club members, 200 + 75 + 250 = 525  

So if P = 500, you buy both forms  

TR = 500 × 60,000 people  

= 30,000,000  

If only club owners buy P = 525, then  

TR = 525 ×50,000

TR= 2,650,000

The higher TR for P is 500.

You might be interested in
Roshannon Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing sys
Rina8888 [55]

Answer:

Im figuring this out for you!

Explanation:

3 0
3 years ago
Gugenheim, Inc., has a bond outstanding with a coupon rate of 5.7 percent and annual payments. The yield to maturity is 6.9 perc
scoundrel [369]

Answer:

Price of bond = $1,798.27

Explanation:

<em>The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV). </em>

Value of Bond = PV of interest + PV of RV  

The value of bond for Gugenheim, Inc.can be worked out as follows:  

Step 1  

PV of interest payments  

annul interest payment  

= 5.7% × 2000  = 138  

annual yield = 6.9%

Total period to maturity = 13 years

PV of interest payment = 114  × (1- 069^-13)/0.069=958.19

Step 2  

PV of Redemption Value  

= 2,000 × (1.069)^(-13) = 840.078

Price of bond  =958.196089  +  840.078 =1,798.27

Price of bond = $1,798.27

8 0
3 years ago
The substitution effect is the concept that if the price of x goes ________ , there will be an increase (shift right) to x away
oksian1 [2.3K]
The answer is right, if not are there choices
5 0
3 years ago
A company has $10,710 available per month for advertising. Newspaper ads cost $180 each and can't run more than 22 times per mon
True [87]

Answer:

22 radio advertisements will be used.

Explanation:

<u>Note</u>: A similar complete question is as follow as the question provided is incomplete <em>"A company has $11,970 available per month for advertising. Newspaper ads cost $110 each and can't run more than 25 times per month. Radio ads cost $410 each and can't run more than 32 times per month at this price. Each newspaper ad reaches 5950 potential customers, and each radio ad reaches 7100 potential customers. The company wants to maximize the number of ad exposures to potential customers. Use n n for number of Newspaper advertisements and r r for number of Radio advertisements . Maximize P"</em>

Number of potential customers that can be reached due to each dollar spent in newspaper advertising =  5950 / 110 = 54.09

Number of potential customers that can be reached due to each dollar spent in Radio advertisements = 7100 / 410 = 17.32.

As the number of potential customers reached by each dollar spent is more from the newspaper advertising, we will use all the newspaper advertising opportunities before going for the radio advertisements. So, we will choose to have 25 newspaper advertisements in the month.

The cost of 25 newspaper advertisements = 25*110  = $2750.

Amount left = $11970 - $2750 = $9220.

Number of radio advertisements possible in this budget = 9220 / 410 = 22.48

Hence, 22 radio advertisements will be used.

3 0
2 years ago
Select the examples of Buying and Merchandising workplaces. Check all that apply.
KiRa [710]

Answer:

2,3,4,5

Explanation:

...

3 0
3 years ago
Read 2 more answers
Other questions:
  • Sales for the year for Victor Company were $1,000,000, 70 percent of which were on credit. The average gross profit on sales was
    13·1 answer
  • Which action can hurt your credit score? I. Paying your phone bill late. II. Taking the bus to work. III. Maxing out several cre
    5·2 answers
  • Emily, who lives in Indiana, volunteered to travel to Louisiana in March to work on a home-building project for
    14·1 answer
  • Jim and Lisa own a dog-grooming business in Champlain, New York, called JL Groomers. There are many buyers and many sellers in t
    14·1 answer
  • The action by Massachusetts farmers who were protesting debt collections, foreclosures, and taxes and which raised concern among
    8·2 answers
  • What were the holdings of the case HALO Electronics vs Pulse Electronics ? Help please
    7·1 answer
  • The market structure in which the behavior of any given firm depends on the behavior of the other firms in the industry is
    9·1 answer
  • 1. The payment made each period on an amortized loan is constant, and it consists of some interest and some principal.
    12·1 answer
  • In the Capacity Allocation problem with two classes, companies have to determine Group of answer choices How many discount custo
    6·1 answer
  • An individual with $32.000 in taxable income pays $970 for the 10% tax bracket, and $2,676 for the 12% bracket. What is the over
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!