When marketers use a variety of communication disciplines-advertising, personal selling, sales promotion, public relations, dire
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Answer:
Price inelastic.
Explanation:
Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services.
In sales and marketing, pricing of products is considered to be an essential element of a business firm's marketing mix because place, promotion and product largely depends on it.
A price elasticity of demand can be defined as a measure of the responsiveness of the quantity of a product demanded with respect to a change in price of the product, all things being equal.
Mathematically, the price elasticity of demand is given by the formula;
The demand for goods is said to be inelastic, when the quantity of goods demanded by consumers with respect to change in price is very small. Thus, the more easily a consumer can switch to a substitute product in relation to change in price, the greater the elasticity of demand.
Generally, consumers would like to buy a product as its price falls or become inexpensive.
In this scenario, the residents of California did not use less water even when the water company raised water prices. Thus, water is price inelastic.
Answer:
<em><u>For Break Even Point</u></em>
Oil Change: $ 210,000
Brake repair: $ 90,000
<em><u>For target profit</u></em>
Oil Change: $ 350,000
Brake repair: $ 150,000
Explanation:
Now, we solve for
the target mix:
sales weight times contribution ratio
0.70 x 0.20 + 0.30 x 0.4 = 0.26
Now we solve the break even point for each service outlet:
Oil Change: 78,000 / 0.26 = 300,000 sales revenue
we multiply by the weight to know eahc type of serivce sales revenue
Oil Change: $ 300,000 x 0.7 = $ 210,000
Brake repair: $ 300,000 x 0.3 = $ 90,000
Now we solve for target profit:
(78,000 + 52,000) / 0.26 = 500,000
Oil Change: $ 500,000 x 0.7 = $ 350,000
Brake repair: $ 500,000 x 0.3 = $ 150,000