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Temka [501]
3 years ago
11

The formula Nequalspplus0.02p models the new​ population, N, of a town with current population p if the town is expecting popula

tion growth of 2​% next year. Find the new population of a town whose current population is 4200 persons.
Business
1 answer:
Llana [10]3 years ago
5 0

Answer:

4284 persons

Explanation:

The new population of the town will be computed as:

Increase in population = Current population × Increase in population %

where

Current population is 4200 persons

Increase in population % is 2%

Putting the values above:

= 4200 persons × 2%

= 84 persons

So, the new population would be:

New population = Current population + Increase in population

= 4200 + 84 persons

= 4284 persons

Therefore, next year, there would be 4284 persons

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After all resulting adjustments have been completed, the new equilibrium price will less than the initial price and output. The same will happen to the industry output. In each situation in which <span>an increase in product demand occurs in a decreasing-cost industry the result is: </span>the new long-run equilibrium price is lower than the original long-run equilibrium price.
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3 years ago
Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. Company is currently operating at 75 p
yulyashka [42]

Answer:

Yes Strawberry line should be dropped as it reduces the overall profit by$ 3600 when the fixed costs are not 20 %

Yes Strawberry line should be dropped as it reduces the overall profit by$ 1720 even when the fixed costs are  20 %

Explanation:

Cotrone Beverages

Differential Analysis

                          Totals                    Totals             Difference / Change

                      including    (less)   Without   (equals)

                     Strawberry             Strawberry

Sales                           253,200    167,600           85600  Decrease

Variable costs              201,400   124,200          77200    Decrease

Fixed costs allocated  35,600        28,480          7120    Decrease

<u>Operating profit (loss)   </u><u>13,200       14,920           (1720)     Increase</u>

<u>Working </u>

<u>Total Fixed Costs Reduced will be = </u> 35,600 *20%= 7120

Here we see the profit is increased by 1720 therefore strawberry line should be dropped.

Cotrone Beverages

Differential Analysis

                          Totals                    Totals             Difference / Change

                      including    (less)   Without   (equals)

                     Strawberry             Strawberry

Sales                           253,200    167,600           85600  Decrease

Variable costs              201,400   124,200          77200    Decrease

Contribution margin     51,800       43,400           8,400    Decrease

Fixed costs allocated  35,600        23,600          12000    Decrease

<u>Operating profit (loss)   </u><u>13,200       16,800           (3,600)   Increase</u>

<u></u>

Yes Strawberry line should be dropped as it reduces the overall profit by$ 3600

<u><em>Working </em></u>

<u><em>We find the totals with and without the strawberry product line and then subtract to find the   differential costs</em></u>

Cotrone Beverages

Product                        Original             Strawberry       Orange     Total

Sales                            $65,200            $85,600         $102,400   253,200

Variable costs              44,000              77,200             80,200      201,400

Contribution margin $21,200                $8,400          $22,200       51,800

Fixed costs allocated 9,400                  12,000              14,200     35,600

Operating profit (loss) $11,800               $(3,600)           $8,000     13,200

If we drop the strawberry line then the new totals would be

Product                        Original          Orange      Total

Sales                            $65,200       $102,400   167,600

Variable costs              44,000          80,200      124,200

Contribution margin $21,200          $22,200       43,400

Fixed costs allocated 9,400               14,200     23,600

Operating profit (loss) $11,800           $8,000     16,800

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= ($1,5482,000) ÷ (1 - 0.0815)

= $16,855,743.06

So, shares to be sold is

= $16,855,743.06 ÷ $27.50

= 612,936 shares

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