Answer:
31.8%
Explanation:
Simulation is imitation of a situation that represents its operations overtime. Simulation is used for performance tuning. The use of simulation in business is gaining significance. Simulation is used to analyze current situation and predict future. Strassel is using 1000 trials for a bid of $135,000. The estimated probability that Strassel will get the property at a bid of $135,000 is 31.8%.
Answer:
The correct answer is letter "C": By dividing the average cost of workers by their average levels of output.
Explanation:
The Unit of Labor cost measures how much it costs to compensate and employee per unit manufactured. It is calculated by dividing the average cost of employees with an average level of production. The result is expressed as a percentage of the labor compensation per hour in regards to the units produced without the same time.
Answer:
$303,072 - The Question is altered by the Students, so the options given are not correct.
Explanation:
In relevant cost the only cost relevant is the variable cost not the fixed costs. So differential cost would be the difference of the cost of purchasing and the cost of making the product at home, excludin the fixed cost.
Differential cost = Cost of purchasing Less Cost of making at home
Cost of purchasing one unit is $17 which is variable cost. Likewise the cost of making the part at home is $9 which is also 100% variable cost. So by putting values, we have:
Differential cost = 37,884 Units * $17 - 37,884 Units * $9 = $303,072
Answer:
b. the experience curve will bottom out at some point.
Explanation:
In the case when the manager could not become complacent regarding the advantage of efficiency based cost so here the experience curve should be end up at some point of time as the experience curve shows the relationship between the production quantity in cumulative one with the production cost
Therefore the option b is correct
Answer:
A low-price strategy
Explanation:
Price elasticity of demand is the responsiveness of quantity demand to a change in price. It is calculated by dividing the % change in quantity demanded by the % change in price.
- Perfectly elastic demand: Even no changes in price causes a change in quantity demanded (horizontal demand curve)
- Elastic demand: Change in price causes a relatively higher change in quantity demanded (Sloped demand curve, PES > 1)
- Unitary elastic demand: Change in price causes the same change in quantity demanded (PES = 1)
- Inelastic demand: Change in price causes a relatively lower change in quantity demanded (Steep slope in demand curve, PES < 1)
- Perfectly inelastic demand: Even with changes in the price, there is no change in the quantity demanded (vertical demand curve).
In this case, demand for hamburgers by both students and faculty is elastic since it is 4 and 3 respectively and hence higher than 1. Thus, any change in price will cause a higher change in quantity demanded.
Note: <em>The negative figures DOES NOT mean less than 1. The negative figure is because price and quantity demanded have an inverse relationship (when one rices, the other falls). Hence, even -4, -3, -6 are all elastic. However, -0.2, -0.9 and such are considered inelastic. </em>
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When demand is elastic, a fall in price will help to maximize total revenue and profits, because when price falls by a certain amount, demand will increase by a much larger amount. Thus, in order to maximize profits, a low-price strategy should be used. In this low price strategy, students should be charged lower than faculty members, since students have a more elastic demand compared to faculty members. For example, students can be charged $5.6 and faculty members $5.8
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