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
nignag [31]
3 years ago
8

The inverse demand curve for product X is givenby: PX = 25 - 0.005Q + 0.15PY, where PX represents price in dollars per unit, Qre

presents rate of sales in pounds per week, andPY represents selling price of another product Y indollars per unit. The inverse supply curve ofproduct X is given by: PX = 5 + 0.004Q.
a. Determine the equilibrium price and sales of X. Let PY = $10.
b. Determine whether X and Y are substitutes or complements.
Business
1 answer:
dem82 [27]3 years ago
5 0

Answer:

(a) $14.56; 2,388.88

(b) Substitute goods

Explanation:

Given that,

Inverse demand curve: PX = 25 - 0.005Q + 0.15PY

Inverse supply curve: PX = 5 + 0.004Q

(a) Let PY = $10

For Equilibrium,

Supply = Demand

5 + 0.004Q = 25 - 0.005Q + 0.15PY

5 + 0.004Q = 25 - 0.005Q + 0.15(10)

0.004Q + 0.005Q = 20 + 1.5

0.009Q = 21.5

Q = 21.5 ÷ 0.009

   = 2,388.88

PX = 25 - 0.005Q + 0.15PY

     = 25 - 0.005(2,388.89) + 0.15(10)

     = 25 - 11.94 + 1.5

P = 14.56

(b) PX = 25 - 0.005Q + 0.15PY

Q = (25 + 0.15PY - PX) ÷ 0.005

From the above equation, the coefficient of the price good Y is positive which means that the quantity is positively related with the price of good Y.

Therefore, as the price of good Y increases then as a result demand for good X increases.

Hence, good X and Good Y are substitute goods.

You might be interested in
repare a contribution format income statement segmented by divisions. 2-a. The Marketing Department has proposed increasing the
Umnica [9.8K]

Question Completion:

Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $ 1,509,000 567,040 941,968 1,036,000 $ (94,040) In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, the Accounting Department has developed the following information: Division Central $389,000 $600,000 $520,000 East West Sales Variable expenses as a percentage of sales Traceable fixed expenses 27% 36% $283,000 $336,000 $203,000

Prepare a contribution format income statement segmented by divisions Division Total Company East Central West

The Marketing Department has proposed increasing the West Division's monthly advertising by $25,000 based on the belief that it would increase that division's sales by 19%.

Answer:

Wingate Company

a. Contribution format income statement segmented by divisions

Division                            Total Company        East      Central        West

Sales                                   $ 1,509,000   $389,000  $600,000  $520,000

Variable expenses                   567,040      217,840      162,000      187,200

Contribution margin                 941,960     $171,160   $438,000   $332,800

Traceable fixed expenses      822,000  $283,000   $336,000  $203,000

Non-traceable fixed expense  214,000

Net operating income (loss) $ (94,040)   ($111,840)   $102,000  $129,800

b. If the marketing department's proposal is implemented, the net operating loss will decrease by $38,232, i.e from $94,040 to $55,808.

Explanation:

a) Data and Calculations:

Wingate's most recent monthly contribution format income statement:

Sales                                   $ 1,509,000

Variable expenses                   567,040

Contribution margin                 941,968

Fixed expenses                     1,036,000

Net operating income (loss) $ (94,040)

Additional information:

Division                                 Central       East          West

Sales                                   $389,000  $600,000  $520,000

Variable expenses as a

 percentage of sales                 56%           27%           36%

Traceable fixed expenses $283,000  $336,000 $203,000

Increase in Division West's fixed expenses by $25,000

Expected increase in Division West's sales = 19%

Contribution format income statement segmented by divisions

Division                            Total Company        East      Central        West

Sales                                   $ 1,509,000   $389,000  $600,000  $520,000

Variable expenses                   567,040      217,840      162,000      187,200

Contribution margin                 941,968     $171,160   $438,000   $332,800

Traceable fixed expenses      822,000  $283,000   $336,000  $203,000

Non-traceable fixed expense  214,000

Net operating income (loss) $ (94,040)   ($111,840)   $102,000  $129,800

Based on new proposal:

Contribution format income statement segmented by divisions

Division                            Total Company        East      Central        West

Sales                                   $ 1,607,800   $389,000  $600,000   $618,800

Variable expenses                  602,608      217,840      162,000    222,768

Contribution margin              1,005,192     $171,160   $438,000  $396,032

Traceable fixed expenses      847,000  $283,000   $336,000  $228,000

Non-traceable fixed expense  214,000

Net operating income (loss) $ (55,808)   ($111,840)   $102,000  $168,032

5 0
2 years ago
he Assembly Department of​ ByteSize, Inc., manufacturer of​ computers, incurred $ 260 comma 000 in direct material costs and $ 7
Mkey [24]

Answer:

<em>Cost per equivalent unit  for conversion cost = $116.66</em>

<em>                                      </em>

Explanation:

<em>Under the weighted average method of valuation, to account for completed units, it is assumed that the entire degree of work required to a complete a set of work  is done in the period under consideration.So there is no separation of the completed units into opening inventory and fully worked. </em>

To determine the cost per equivalent unit, we use the formula below:

<em>Cost per equivalent unit = $70,000/600</em>

<em>                                        = $116.66</em>

<em />

8 0
2 years ago
Read 2 more answers
The auto repair shop of Quality Motor Company uses standards to control the labor time and labor cost in the shop. The standard
GarryVolchara [31]

Answer:

1. Actual Hour = 145 hour

2. Actual rate per hour = 28.17 per hour

Explanation:

According to the scenario, computation of the given data are as follow:-

1). Labor Efficiency Variance= Labor Rate Variance + Labor Spending Variance

= 170 + 120

= 290

Labor Efficiency Variance = Standard Rate × (Standard Hour - Actual Hour)

-290 = 29 × (54 × 2.5-X)  

-290 = 29 × (135 - X)

-290 = 3,915 - 29x

29x = 4,205

X = 4205 ÷ 29 = 145

Actual Hour = 145 hour

2). Labor Rate Variance = Actual Hour × (Standard Rate-Actual Rate)

120 = 145(29-x)

120 = 4,205-145x

145x = 4,085

X= 4,085 ÷ 145

Actual rate per hour = 28.17 per hour

8 0
3 years ago
You are working as a communication specialist for BMW which is releasing a new luxury car in March 2021. BMW have already carrie
Ray Of Light [21]

Answer:

Here is the answer!

Explanation:

You are working as a communication specialist for BMW which is releasing a new luxury car in March 2021. BMW have already carried out a market survey and have already determined the price of the product and the targeted audience.

You are working as a communication specialist for BMW which is releasing a new luxury car in March 2021. BMW have already carried out a market survey and have already determined the price of the product and the targeted audience. Now that your company have to start a sale campaign, you have been asked to elaborate with your team the communication strategy for conducting this campaign during spring and summer (From March to August). Write your strategy in almost five pages

8 0
3 years ago
Which of the following likely has the highest degree?
sergey [27]

I would say a biomedical researcher because they need a PhD and that's one of the highest degrees you can get

8 0
3 years ago
Other questions:
  • You often find that employees choose a health care plan without carefully considering their options. In fact, sometimes employee
    8·1 answer
  • Ali buys a new pair of shoes at a shoe store. to which of the arrows does this transaction directly contribute?
    12·1 answer
  • Wich of the following is not an optional deduction
    8·2 answers
  • You purchased 100 shares of IBM common stock on margin at $70 per share. Assume the initial margin is 50%, and the maintenance m
    13·1 answer
  • Marcus is a self-employed marketing consultant. He is good at helping his clients with their marketing challenges; however, he i
    9·1 answer
  • If you want to sell unique wristbands to the 250 participants in a special boating event to raise funds for research for a rare
    13·2 answers
  • What are the TWO primary philosophies discussed in Chapter 8 – Operations Management that are used to help manage operations in
    11·1 answer
  • __________ managers believe that there are differences and similarities between domestic and foreign practices and that managers
    11·1 answer
  • 4. Does the same thing work for every customer?
    6·2 answers
  • Which financing method would be ideal for funding long term investments?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!