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
timurjin [86]
3 years ago
11

Assume you are the new Product Manager in our Amazon Prime business and are in charge of Pricing. The VP would like to lower the

price from $79.99 per year to $69.99 per year. Making your own assumptions, develop the financial projections of this decision.
Business
1 answer:
vaieri [72.5K]3 years ago
3 0

Answer:

Provided in Explanation

Explanation:

This is a very general question however I’ll try to answer it to the best of my knowledge.

If I use my own assumptions then these will be the Projections:

Selling Price         $79.99  Selling Price         $69.99

Cost of Sales/unit $40.00  Cost of Sales/unit $40.00

Expenses/unit $15.00  Expenses/unit $15.00

   

Demand @ $79.99 1000 Demand @ $69.99 1200

   

Sales         $79,990.00  Sales         $83,988.00

Cost of Sales $40,000.00  Cost of Sales $48,000.00

Expenses $15,000.00  Expenses $18,000.00

Profit        $24,990.00        Profit         $17,988.00

The final decision however relies on the Price Elasticity of the Product. If the Product is Price elastic then lowering the Price will lead to a significant rise in Demand. However if the Product is Price inelastic then lowering the Price will not lead to a significant rise in Demand and thus profit margins will be lowered. If the Product is Price inelastic then it is better to increase prices in order to gain more profits. In the case of Unit Elasticity the change in Demand will be at the same proportion as price change so it won’t be of any use to change the Price.

You might be interested in
Imagine that before black diamond initiated its greenfield venture in zhouhai, china, peter and wim asked for your advice. what
Nadya [2.5K]
<span>A green field investment or venture is a foreign direct investment known as FDI. If a company decides to go the FDI route, they are building their operations within a foreign country from start to finish. They will often build many distribution warehouses, offices and living areas for their workers that go to the foreign country to work or those within the foreign country working for the parent company. </span>
7 0
3 years ago
Read 2 more answers
Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. For a c
alexandr402 [8]

There is some information missing and I looked up it. If the numbers are not exactly the same, you adjust them to your question.

  • The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $166,436.
  • The bank collected $26,500 on a $25,000 note, including interest of $1,500.
  • A check for $4,000 returned with the statement had been incorrectly recorded by Pala Medical Co. as $400. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account.
  • Bank service charges for June amounted to $55.

Answer:

June 30, 20Y1

Dr Cash 26,500

    Cr Notes receivable 25,000

    Cr Interest revenue 1,500

Dr Cash 3,600

    Cr Accounts receivable 3,600

Dr Bank fees expense 55

    Cr Cash 55

If a balance sheet were prepared for Pala Medical Co. on June 30, 20Y1, what amount should be reported as cash?

$166,436 + $26,500 + $3,600 - $55 = $196,481

6 0
3 years ago
BUSINESS ETHICS is a manager at Chemwep by-products from the plant are simply put in barrels and stacked near the boundary lines
liubo4ka [24]

Answer:

The organization's items would be facing challenge on youngsters by not uncovering the substance of the barrel. Anyway Roger is additionally facing challenge of his activity and numerous others work by unveiling this data to people in general. He ought to counsel Blanchard and Peale asking them the three inquiries "Is it moral?" "Is it adjusted?" "Is it legitimate?"

5 0
3 years ago
Inflation is the result of a combination of factors listed below. select all of the correct answers.
ElenaW [278]
_Award brainliest if helped
Either
Demand for goods increase much too rapid [Demand-pull inflation]
or
Cost of producing goods increase. [<span>Cost-push inflation]</span>
4 0
3 years ago
Marigold Corp. has these accounts at December 31: Common Stock, $12 par, 5,200 shares issued, $62,400; Paid-in Capital in Excess
irina [24]

Answer:

Total Paid in capital = $81100

Total paid in capital and retained earnings = $124800

Total Stockholder's equity are = $114460

Explanation:

given data

Common Stock  = $12 par value 5200 shares

shares issued =  $62400

Paid-in Capital  = $18700

Retained Earnings = $43700

Treasury Stock  470 shares = $10340

to find out

stockholders' equity section of the balance sheet

solution

we get first Total Paid in capital that is

Total Paid in capital = shares issued  + Paid-in Capital   ..............1

Total Paid in capital = $62400  + $18700

Total Paid in capital = $81100

and

Total paid in capital and retained earnings = Total Paid in capital + Retained Earnings    .................2

Total paid in capital and retained earnings = $81100 + $43700

Total paid in capital and retained earnings = $124800

and

so Total Stockholder's equity are = Total paid in capital and retained earnings - Treasury stock   ..................3

Total Stockholder's equity are = $124800 - $10340

Total Stockholder's equity are = $114460

7 0
3 years ago
Other questions:
  • EDP is trying to decide between two different conveyor belt systems. System A costs $438,000, has a six-year life, and requires
    10·1 answer
  • Peterson Company's general ledger shows a cash balance of $7,440 on May 31.
    10·1 answer
  • The following data are for Lily Kay Company. Total sales revenue $250,000 Number of units sold 50,000 units Contribution margin
    5·1 answer
  • Sheffield Company buys merchandise on account from Cheyenne Corp.. The selling price of the goods is $850, and the cost of the g
    9·1 answer
  • AnaCarolina and Jaco, executive managers at Duke Manufacturing, are tasked with determining appropriate performance metrics for
    10·2 answers
  • Which of the following is a disadvantage of a sole proprietorship?
    10·1 answer
  • Which of the following is the best example of correlation not being the same as causation? A. A company redesigns a production p
    13·1 answer
  • _____ is a practice where a store sends coupons to a customer, who has already bought a product from the store, for a more expen
    12·1 answer
  • Do u think that the production employees should recieve the same fringe benefits and share of profits as a factory manager? Just
    8·1 answer
  • Calculate the balance of cash using a bank reconciliation (LO4-5) Spielberg Company's general ledger shows a checking account ba
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!