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Sergeu [11.5K]
3 years ago
11

The owner has been considering ways to increase the sales volume. The owner thinks that 10 comma 000 pizzas could be sold per mo

nth by cutting the selling price per pizza from $ 5.50 a pizza to $ 5.00. How much extra profit​ (above the current​ level) would be generated if the selling price were to be​ decreased? (Hint: Find the​ restaurant's current monthly profit and compare it to the​ restaurant's projected monthly profit at the new sales price and​ volume.) Identify the profit formula and compute the monthly profit at the current and the new volume. Total revenues – Total costs = Monthly profit 5,000 pizzas 13750 – 8000 =
Business
1 answer:
almond37 [142]3 years ago
7 0

Answer:

Instructions are listed below

Explanation:

Giving the following information:

The owner thinks that 10,000 pizzas could be sold per month by cutting the selling price per pizza from $ 5.50 a pizza to $ 5.00.

Total revenues – Total costs = Monthly profit 5,000 pizzas 13750 – 8000 =

I will assume that at $5.50 the total sales in units are 5000. And that the variable cost per unit is $2.75 ($13750/5000) and fixed cost are $8000

Actual profit= (5000*5.5- 5000*2.75) - 8000= $5750

New price profit= (10000*5 - 10000*2.75) - 8000= $14500

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A monopoly that attempts to charge the socially desirable price will invariably reduce their economic profit because:_______
shusha [124]

Answer:

D

Explanation:

A monopoly that attempts to charge the socially desirable price will invariably reduce their economic profit because average cost and marginal cost are equal.

8 0
3 years ago
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East Coast Cleaners borrows $20,000 for 120 days and pays $400 interest. What is the effective rate of interest if the loan is d
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The answer is 4.0 because i you said get your money from
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3 years ago
1) The Johnson Manufacturing Co. has an annual operating budget of $750,000. Each year it budgets for the following expenses: po
nevsk [136]

Answer:

See below

Explanation:

The percentage allocated to each socially responsible action

1. pollution control

Pollution control has been allocated is $37,000

As a percentage

= $37,000/$750,000 x 100

=0.0493333 x 100

=4.933%

2. Community project

community project has been allocated $22,500

As a percentage

= 22,500/750,000 x 100

=0.03 x 100

=3%

3. Employee fitness

The amount allocated to employee fitness is $7500

As a percentage

=$7500/$750,000 x 100

=0/01 x 100

=1%

4. The total amount spent is

=, $37,000 +$22,500 +$7,500.

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7 0
3 years ago
At which price and quantity combination would the government regulate this firm to get as close as possible to the most efficien
Kipish [7]

Answer:

Point C and G. Refer to the attached image.

Explanation:

According to the attached image, the price and quantity combination the government would regulate this firm to get as close as possible to the most efficient point for society is C and G because, this is the point where marginal cost MC and Average Total Cost intercept and form lower equilibrium point.

This means that if company sell at this point they will not run at shortage and also for buying society, the quantity they will buy is also at the increase making it the most efficient point for the society.

3 0
3 years ago
Which of the following statements is CORRECT?
ELEN [110]

Under normal conditions, a firm's expected ROE would probably be higher if it financed with short-term rather than with long-term debt, but using short-term debt would probably increase the firm's risk.

Option A

<u>Explanation: </u>

In business finance, the productivity of an undertaking, also defined as net assets or asset minus debt, is a calculation of its viability with respect to equity.ROE is a calculation about how well funds are used to produce increases in profits.

Companies are able to fund themselves with stocks and bonds. A business will raise its investment value by increasing the number of debt capital compared to its equity capital. There was a misunderstanding. Then you see that the new company has a better ROE because of its financial resources as you split the net income per shareholder's capital stock.

6 0
3 years ago
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