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Natasha2012 [34]
2 years ago
13

Georgetown Public Media is trying to determine the optimum amount for its advertising budget. Calculating the marginal revenue o

f adding another listener can be computed as the probability of becoming a member times the revenue expected from each member. This is a crude estimate, but it is the only information we have. Using the following spreadsheet, calculate the optimal level of advertising. What is it?
Advertising MR MC Listeners Profit
$10,000 $21 $5.00 2000 $32,000
$20,000 $21 $10.00 3386 $51,112
$21
$21
$21

At this level, the marginal cost of acquiring a customer is $21, equal to the marginal revenue of acquiring a customer. Note also that as the advertising level increases its effectiveness drops. This is reflected in the marginal cost of acquiring another customer and is typical of many extent decisions. You pick the low hanging fruit first, and then you move to the more costly, Higher hanging fruit.

(A) about $36,000
(B) about $40,000
(C) about $42,000
(D) about $55,000

Business
1 answer:
podryga [215]2 years ago
5 0

Answer:

(A) about $36,000

Explanation:

Please see attachment

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A 4.30 percent coupon municipal bond has 15 years left to maturity and has a price quote of 97.85. The bond can be called in fou
yanalaym [24]

Answer:

Bond's Current Yield  4.39%

Explanation:

The bond's current yield is calculated as below:

Bond's Current Yield = Annual Coupon Payment/Current Bond Price*100

Substituting values in the above formula, we get,

Bond's Current Yield = (100*4.30%)/97.85*100 = 4.39%

6 0
2 years ago
A firm is selling two products, chairs and bar stools, each at $50 per unit. Chairs have a variable cost of $25, and bar stools
marishachu [46]

Answer:

Break-even point in dollars= $36,364

Explanation:

Giving the following information:

A firm is selling two products, chairs and bar stools, each at $50 per unit. Chairs have a variable cost of $25, and bar stools $20. The fixed cost for the firm is $20,000.

To calculate the break-even point in dollars for the firm, we need to use the following formula:

Break-even point (dollars)= Total fixed costs / [(weighted average selling price - weighted average variable expense)/ weighted average selling price]

weighted average selling price= (selling price* weighted sales participation)= $50

weighted average variable cost= (variable cost* weighted sales participation)

weighted average variable cost= (25*0.5 + 20*0.50)= $22.5

Break-even point in dollars= 20,000/ [(50 - 22.5)/ 50]= $36,364

4 0
3 years ago
By using resources in an efficient and effective manner to reach organizational goals, managers may reach their ultimate respons
svlad2 [7]

Answer:

Performance

Explanation:

The ultimate responsibility of the manager is to accomplish the high performance that represent the attainment of the organization goals via using the resources in a best way i.e. efficient and effective manner

So the responsibility of the manager is to accomplish the high performance so that the company could attain its goals and objectives

3 0
2 years ago
Franklin has $2,500 in a savings account that pays interest at the rate of 4% annually. how much interest will he earn after one
prohojiy [21]
Interest earned=2,500×0.04=100
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3 years ago
Vivian worked as a manager at her company. She was asked to order a few cars that would be used by company employees. Which best
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To ensure that her company is being socially responsible, Vivian should ensure that the cars are environmentally friendly. Being socially responsible means you do what is best for planet, people, and profits. In this case, taking care of the planet means choosing the car that is the most environmentally friendly.

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3 years ago
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