Answer:
Option (d) $16,008.17
Explanation:
Data provided in the question:
The price of the Firebird in 1969 = $2,500
Price index in 1969 = 36.7
Price index in 2013 = 235
Now,
The price of the Firebird in 2013 dollars will be
= [ Price index in 2013 ÷ Price index in 1969 ] × The price of the Firebird in 1969
= [ 235 ÷ 36.7 ] × $2,500
= 6.40327 × $2,500
= $16,008.17
Hence,
Option (d) $16,008.17
The bundle prices for Hydration Power Drink and Satisfying Smoothie are given below.
<h3>
What is Contribution Margin?</h3>
The contribution margin (CM), also known as the dollar contribution per unit, is the difference between the selling price and the variable cost per unit.
Because 100% is the best contribution margin, the closer the contribution margin is to 100%, the better. The greater the figure, the better a company's ability to meet its overhead expenditures with cash on hand.
The contribution margin =
Unit Margin (Profit) = Unit Revenue - Unit Variable Cost (Marginal Cost)
<h3>What is the bundle prices and Net Profit?</h3>
For Hydration Power Drink:
High 7 -1 = 6
Low: 6 - 1 = 5
Total = 11
For Satisfying Smoothie:
High: 10 -4 = 6
Low: 5-4 = 1
Total = 7
High Bundle Price for both products:
6 + 6 = 12
Low Bundle price for both products:
5 + 1 = 6
From the above information, it is clear that the Bundle Price that will maximize profit is the High Bundle Price.
The product that will yield the most profit is: The Hydration Power Drink.
Learn more about bundle price:
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Answer:
Expectancy theory
Explanation:
Expectancy theory - is referred to as the approach in which individual work according to the defined goal. People are motivated to act in a certain way because they believe to have expected results from the way they have selected.
It also states that desirable outcomes of any behavior hold the motivation by other people
The three main components on which Expectancy theory work are:
- Expectancy
- Instrumentality
- valence
Answer:
The number of new clients will increase by
12/3 = 4
Therefore, the number of new clients will increase by 4.
Explanation:
In getting new client, Sam takes 5hours, while Terasa takes 3hours.
In preparing food, Sam takes 10hours while Teresa takes 12hours.
It can be seen that Sam has absolute advantage and comparative advantage in preparation of food, while Tesesa has absolute advantage and comparative advantage in getting new client.
Sam with the comparative advantage in food preparation will take over preparing food for one more event by taking the necessary time away from getting more clients, and Teresa will use the freed-up time from not preparing food for one event to get more clients.
Teresa will free up 12hours she used in the preparation of food.
Since she use 3hours to get new client, She will get
12/3, which equals 4 number of clients
