Answer:
a) Price Relative for Halibut is 115.9 (1 d.p)
Price Relative for Lobster is 85.4 (1 d.p)
Price Relative for Tuna is 105.4 (1 d.p)
b) The Weighted Aggregate Price Index for the seafood catch is 98.4.
Explanation:
a) The Price Relative for a good refers to it's current price divided by it's base price times 100. It therefore measures a change in price across different periods.
Writing the formula as stated is,
Price Relative = Current Price / Base Price * 100
Price Relative for Halibut = 2.33/2.01 * 100
= 115.9 (1 d.p)
Price Relative for Lobster = 3.09/3.62 * 100
= 85.4 (1 d.p)
Price Relative for Tuna = 1.97/1.87 * 100
= 105.35
= 105.4 (1 d.p)
b) The Weighted Aggregate Price Index enables us to see how prices in a particular basket has changed over a period of time. It is calculated as follows,
Weighted Price Index = (Sum of Weighted Current Price ) / ( Sum of weighted Base Price) * 100
Sum of Weighted Current Price = (75,190 * 2.33) + (83,080 * 3.09) + ( 50,779 * 1.97)
= 538,124.53
Sum of Weighted Base Price = (75,190 * 2.01) + (83,080 * 3.62) + ( 50,779 * 1.87)
= 546,838.23
Weighted Price Index = (538,124.53 / 546,838.23) *100
= 98.4
The Weighted Aggregate Price Index for the seafood catch is 98.4.
The term ROP for U-Haul means Roll Over Protection which is a service that is offered for rental units of trailers.
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)
<span>Maximum prices in economics can be also known as Price Ceiling, where it is the legal maximum prices that producers can sell their good at. However, as this causes a market disequilibrium, ceteris paribus, there will exist a surplus of goods produced. This is due to the signalling and incentive effective on producers and consumers resulting in the increase of price (that has been set by the government).
Consumers would consume less of the product as it is more pricey than before, hence they are less willing and able to buy the product at the new price. Producers on the other hand sees more revenue to be earnt through higher prices and hence would devote their resources into producing that product. Hence the mismatch of supply and demand results in a surplus of products and would likely result in the government buying all the surplus out of interest for producers.</span>
Answer:
There could be many reasons to this, there could be many possible reasons, managers need to carefully analyse what might be the cause.
Job advertisement might not be posted in the appropriate newspapers, websites and magazines. Here IBM human resource manager needs to find the most appropriate sources to put the ads.
IBM might not getting the right candidates because the current candidates might positing some negative reviews about its working conditions, here managers need to address this issue properly but figuring out the actual root cause for this problem.
IBM might not presenting the idea of diverse workforce in their recruiting advertisement, here they need to show diverse workforce in their hiring ads.
