An instance where sellers should work to keep relationships with consumers is when they feel that the product
Answer:
1. That values that you must plot are:
2. Yes, the plot of those three points is straight enough.
Explanation:
<em><u>A. What are the values you will plot? </u></em>
The x-ccordinate of your plot is still the number of years the exmployees have worked for the company.
The y-coordinate of your plot is the the base-10 logarithm of the salary.
Therefore:
<u>1) A part-time shipping clerk</u>: 1 year, $12,000
⇒ 
<u>2) A manager</u>: 20 years, $120,000
⇒ 
<u>3) The CEO</u>: 40 years ago, $1,500,000
⇒ 
Summarizing, the points to plot are:
<u><em>B. Will the plot of these three points be straight enough?</em></u>
To find whether the plot is straight enoguh, you may either plot them, make a regression, or, since they are only three points, you can whether the change of rate of the points is constant.
- <u>Change of rate of the first two points, r</u>:
r = rise/run = Δy / Δx = (5.08 - 4.08) / (20 - 1) =1.00/19 ≈ 0.05
- <u>Change of rate of the second and the third points, r</u>:
r = rise/run = Δy / Δx = (6.18 - 5.08) / (20 - 1) = 0.05
Since both rate of changes are equal (or reasonably equal) the plot is straight enough.
Answer: An ethical dilemma
Explanation:
An ethical dilemma is a situation where an individual is faced with making a decision between two options where if any option is chosen the individual might act against his/her moral principle. Like in the question, John is faced with the option of either complaining about child labor and then the child losses his/her source of income or allowing things to be as they already are.
Each unit sells: $80
Each unit costs to make: $32
Fixed costs: 72,000
Goal: 2,000 units sold
If they meet their goal, let's see how that would go:
(2,000 * 80) - (2,000 * 32) - 72,000 = ?
160,000 - 64,000 - 72,000 = 24,000
24,000 is the profit they would make for hitting their goal.
Question 1:
What is the break-even point? The break-even means they make no money, but they also lose no money. So that final number (24,000) would be 0 instead. How many units would they have to make to hit zero?
(x * 80) - (x * 32) - 72,000 = 0.
80x - 32x = 72,000
48x = 72,000
x = 1500 units
We can verify by using our first formula we've already determined, using this new value for units.
(1,500* 80) - (1,500 * 32) - 72,000 = ?
120,000 - 48,000 - 72,000 = 0? True!
Question 2: If they increase their expenses by 16,000, what is their new break even point?
(x * 80) - (x * 32) - 72,000 - 16000 = 0.
80x - 32x - 88000 = 0
48x = 88000
x = 1833
Question 3: 10% reduction in selling price and 10% increase in sales. (Assuming based off the original formula the problem provided.)
Original: (2,000 * 80) - (2,000 * 32) - 72,000 = ?
10% Reduction in price: 8
80-8 = 72
10% increase in sales: 200
2000 + 200 = 2200
Plugin to our formula:
(2200 * 72) - (2200 * 32) - 72,000 = ?
158400 - 70400 - 72,000 = 16,000
Since this number is positive, this is income. (D)