Answer:
Option C is correct - allocate all of its production capacity to Product Y.
Explanation:
1. Contribution margin per production hour
Product X Product Y
Contribution margin per unit $8 $7
Units produced per hour 2 3
Contribution margin per production hour $16($8*2) $21($7*3)
2. The most profitable sales mix for this company is to allocate all of its production capacity to Product Y.
Option C is correct.
To know which is more effective, let's just put a fictional number of 100 purchase to test it.
Option A: $2 per person, 60% purchase
Option B: $0.1 per person, 2% purchase
For Option A, cost would be $200 and ended up in 60 purchases
For option B, cost would be $10 and ended up in 2 purchases (if the cost is lifted into $ 200, the purchases is 2 x10 = 20)
Which means option A is more effective.
Answer:
both existing customers who now get lower prices on the gowns they were already planning to purchase and new customers who enter the market because of the lower prices.
Explanation:
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
Consumer surplus = willingness to pay – price of the good
Let assume that the price before the sale and after the sale is $1000 and $800. The willingness to pay of customer A is $1500 and for customer b is $900
consumer surplus of customer A before sale = 1500 - 1000 = 500
consumer surplus of customer A after sale = 1500 - 800 = 700
consumer surplus of customer B before sale = 0
consumer surplus of customer B after sale = 900 - 800 = 100
consumer surplus of both customers increase
Answer:
Explanation:
At equilibrium market demand =market supply and there is no pareto improvement over the equilibrium.Pareto improvement is where somebody can be improved off without intensifying other.
At equilibrium,total number of quantities that purchaser needs are equivalent to amounts which a providers needs to sell at a given cost
It does not implies all people will have same pay and market cost can vary by over 5% if request or supply changes
Answer:
Approximate rate of return will be 9 %
Explanation:
We have given a stock is purchased on January 1 of cost $4.35
And sold at the same year on December 31
We have to find the rate of return
Rate of return will be equal to = 9%
So approximate rate of return will be 9 %