Answer:
31
Explanation:
The calculation of indifferent between your current mode of operation and the new option is shown below:-
Current Operation
Contribution Margin = Monthly Fees - Variable Cost
= $734.00 - $91.00
= $643.00
Total Fixed Cost = Rent and Utilities + Salaries + Insurance
= $5,435.00 + $6,171.00 + $1,545.00
= $13,151.00
New Operation
Contribution Margin = Monthly Fees - Variable Cost
= $1,054.00 - $158.00
= $896.00
Total Fixed Cost = Rent and Utilities + Salaries + Insurance
= $11,679.00 + $6,974.00 + $2,408.00
= $21,061.00
Here we will assume the indifferent number of students will be X
So,
Income under current option = Income under new option
$643.00 × X - $13,151.00 = $896.00 × X - $21,061.00
$253X = $7,910
X = $7,910 ÷ $253
= 31.26
or
= 31
Answer:
$9.00
Explanation:
Note: See the attached file for the calculation of PV of year 1 to 7 dividends.
Price at year 7 = year 8 dividend / (Rate of return - Perpetual growth rate) = (0.5747245056 * 1.05) / (10% - 5%) = $12.0692146176
PV of price at year 7 = $12.0692146176 / (1.10)^7 = $6.19341546169015
Current price = Sum of PV of years 1 to 7 dividends + PV of price at year 7 = $2.81096656749202 + $6.19341546169015 = $9.00
"Customer departmentalization" organizational structures Fhontrake most likely follow.
<u>Explanation:</u>
Such departmentalization of consumers is where the operations of the company are prepared to respond and communicate with individual customers or groups of customers.
This hierarchical style is used when you put strong emphasis on representing various types of customers successfully, thus understood as customer departmentalization. For an enterprise that has products or services tailored to specific market segments, the customer-based structure is optimal, particularly if that company has specific knowledge of those segments.
Answer:
$25,000 by charging consumers with more elastic demand only $5 and keeping the price for consumers with less elastic demand at $10
Explanation:
Price discrimination refers to the differentiation in the price of the product for every consumer that means the company charged different prices from the different customers
Also, in this it charges from the consumers having more elastic demand at less price. Here 2,000 units are purchased at $10 and the 1,000 units are purchased at $5 so the total quantity demanded is 3,000
The 25,000 units come from
= 2,000 ($10) + 1,000 ($5)
= 20,000 + 5,000
= 25,000
