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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.

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Rotonga Manufacturing Company leases a vehicle to deliver its finished products to customers. Which of the following terms corre
Anton [14]

Answer:

b.) fixed cost

Explanation:

Fixed cost is a cost which has incurred and does not varies with change in the amount of goods being produced or being sold in the market.

These are expenses are paid by the company

Fixed costs are independent of any business related activities.

Here,

the lease amount is paid once for a vehicle and the lease amount of this truck does not varies with the amount of products company produces.

3 0
3 years ago
On January 8, the end of the first weekly pay period of the year, Regis Company’s payroll register showed that its employees ear
Len [333]

Answer:

1)

\left[\begin{array}{cccccc}$department&$salaries&OASDI&HI&SUTA&FUTA\\$office&22,760&1,411.12&341.4&280&42\\$sales&65,840&4,082.08&987.6&280&42\\\end{array}\right]

2) payroll expense entries:

payroll expense 2063.14

     Medicare payable       330.02

     Social Security  payable      1411.12

     SUTA                      280

     FUTA                        42

--------------------------------------------

payroll expense  5358.76

     Medicare payable         954.68

     Social Security  payable      4082.08

     SUTA                       280

     FUTA                         42

Explanation:

\left[\begin{array}{cccccc}$department&$salaries&OASDI&HI&SUTA&FUTA\\$office&22,760&1,411.12&341.4&280&42\\$sales&65,840&4,082.08&987.6&280&42\\\end{array}\right]

We apply for each department the tax rate. Notice SUTA and FUTA have a ceilling of 7,000 so we do not apply the rate to the whole amoung but, for the 7,000 ceiling.

8 0
3 years ago
Rapid Response Security Firm, a company that provides on-site security services for malls and other retail environments, needs t
Arisa [49]

Answer:

False

Explanation:

It is false to conclude that on crucial issues such as this, it is more important to gather information through the informal organization, as opposed to the formal organization because f<u>ormal organizations are designed to achieve crucial goals through the collective work of the individuals who are its members. They rely on a division of labor and hierarchy of power and authority to ensure that the work is done in a unified and efficient manner. while the primary function of informal organizations is basically to maintain cultural values and the provision of social satisfaction for its members.</u>

7 0
3 years ago
Shangrilah Sandals is a manufacturing firm in a developing country, where it routinely uses grease payments to local officials t
julia-pushkina [17]

Answer:

b. cultural relativism

Explanation:

Cultural relativism refers to the ideology that what applies to current situation do not necessarily apply to another situation also.

As in the given instance the Shangrilah Sandals make grease payments in their own country as it is a developing country, but do not practice the same in another country called US as it is a developed country.

As the income of people in that country is high they do not believe in taking or accepting grease payments.

Thus, the correct option is:

b. cultural relativism

4 0
3 years ago
8. Which NIMS Management Characteristic allows units from diverse agencies to connect, share information, and achieve situationa
oee [108]

Answer: Integrated Communications Unit

Explanation:  The Integrated Communications Unit is one of the NIMS characteristics that  allows units from diverse agencies to connect, share information and achieve situational awareness.

The Integrated communications unit includes:

1. The “hardware” systems that transfer information.

2. Planning for the use of all available communications frequencies and resources.

3.The procedures and processes for transferring information internally and  externally.

Communications needs for large incidents may exceed available radio frequencies. therefore, other communications resources like cell phones or secure phone lines can be the only communications methods used to coordinate communications and to transfer large  amounts of data effectively.

5 0
3 years ago
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