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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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Pie

Caleb wants to start a business in the health and wellness industry, but before taking the time and effort to create this business, he should know how this business sector has recently performed and where it is headed. Basically, Caleb needs to educate himself on industry trends. (Option A)

<h3>What is this questions about?</h3>

These questions are about business administration. See other answers below.

Financial accountants prepare financial information for people who are both inside and outside the company to assess if the company is performing well. (Option C)

<h3>If Cameron prepares information—such as reports on costs and operations—for the use of employees only, what type of accountant is he?</h3>

Cameron is a managerial Accountant. (Option A).

Jonathan and his partner Drew understand they need to create a document to address stipulations for working with their vendors who supply building materials and home decor staging products for their home show.

<h3>While drafting a contract, what key principles should Jonathan and Drew remember?</h3>

The key principles they ought to remember are;

  • Exchange of value;
  • offer and acceptance. (Option B)

Learn more about Business Administration:

brainly.com/question/26106218

#SPJ1

4 0
2 years ago
Lisa Sumaya has decided to give up her full-time job to complete her master
ICE Princess25 [194]

Answer: Financial effects poses as economical risk while an improvement in career and better opportunity poses as potential economic benefit

Explanation:

One potential economic risk Lisa would have to face is that she would have issues with finances for the time being between when she resigned from her job, through her Master's and till she gets another job.

One potential economical benefit towards this decision is that she would have made an advancement in her career and would be at better place career wise and worth wise to compete for better jobs and improved pay from the place she left.

4 0
3 years ago
A project has an initial cost of $17,700 and produces cash inflows of $7,200, $8,900, and $7,500 over three years, respectively.
Andreas93 [3]

Answer: Never

Explanation:

Discounted payback period aims to find out how long it will take for a project to repay its investment given its discounted cashflows.

Year 1 = 7,200 / ( 1 + 0.16)

= $6,206.8965

= $6,206.90

Year 2 = 8,900 / ( 1 + 0.16) ²

= $6,614.149

= 6,614.15

Year 3 = 7,500 / ( 1 + 0.16)³

= $4,804.93

Year 1 + Year 2 + Year 3

= 6,206.90 + 6,614.15 + 4,804.93

= $17,625.98‬

It failed to pay back the $17,700

3 0
3 years ago
Service variability means that the quality of services does not depend on who provides them. True False
viva [34]

Answer: False

Explanation:

Service variability means that the quality of services depends on who provides them. Also where it was provided, when it was provided, and how it was provided are taken into consideration.

Service variability are changes in the quality of identical service that are beung provided by different vendors. It should be noted that the difference in change is due to the nature of the service, delivery method used and the individual providing the service.

7 0
3 years ago
Below table represents buyers’ willingness to pay for a roasted chicken and consider that there is only one supplier whose cost
frez [133]

Answer:

$13

Explanation:

total consumer surplus = ($10 - $6) + ($7 - $6) = $4 + $1 = $5

total supplier surplus = ($6 - $2) x 2 units = $4 x 2 = $8

total surplus in the market = consumer surplus + supplier surplus = $5 + $8 = $13

Since the price is higher than Chuck's willingness to pay, no transaction will occur resulting in 0 surplus.

3 0
3 years ago
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