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LUCKY_DIMON [66]
3 years ago
12

​ If the quantity sold of two-liter Coke bottles increases by 10% when price falls by 2%, what is the total change in revenue?

Business
1 answer:
MA_775_DIABLO [31]3 years ago
8 0

Answer:

7.8% increase in revenue

Explanation:

Revenue is given by the number of units sold 'n' multiplied by the price of sale 'P'. The revenues before and after the price drop are:

R_{old} = P*n\\R_{new} = (1-0.02)P*(1+0.1)n=1.078P*n

The change in revenue is given by:

R_{new} = 1.078R_{old}\\\Delta R=1.078-1 = 0.078 = 7.8\%

Therefore, there was a 7.8% increase in revenue when price falls by 2%.

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How can knowledge of call options help a financial manager to better understand warrants and convertibles
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<u>Explanation:</u>

Note that<em> call options</em> are simply contracts or tradable assests that gives owners the right to buy the stock at a certain price. While <em>a financial manager</em> is someone task with managing the assets of an investor in a company.

Knowledge of call options will allow the financial manager to sucessfully work with stocks, warrants (recently issued shares of stock), and convertible securities (such as debts been replaced with common stocks).

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4 years ago
Identify factors that could prevent an older, established company from effecting an enterprise-wide, customer-centric culture.
leva [86]

Answer:

A more established company may find it difficult to implement an enterprise-wide, customer-centric culture due to the following reasons:

A) Existence of a Multi-Product Business Model

A business entity that is well established with a lot of years under its belt will find it a tough challenge to shift from a product-oriented business model to a customer-oriented business model.

To be product-focused simply means that that a company has woven its organisational structure around products. For examples, a company that is into the gaming business may have teams for their Sports Betting Section, another for their online gaming section, game hardware section, gaming apps section etc.

First, for these various teams, their performance metric will largely depend on how functionally efficient their products are.  

Second, techy or geeky staff are seldom efficient when it comes to emotional intelligence - a key requirement for being customer efficient.

One way to handle this is to ensure that there is a central Customer Relationship Management team that oversees the customers for each product.

B) Organisational Inflexibility

As direct to the point as it sounds, getting market intelligence for with the intention to use them for decision making is challenging. What is tougher is the ability to implement the insights from such intelligence to effect a turn around in the way customers perceive and respond to a company's offerings.

The ability to quickly take gather market intel, agree on a strategic direction based on same and execute can be referred to organisational agility.  

The more bureaucratic and hierarchical an organisation is (this, by the way, characterises older and more established business systems) the less agile it is likely to be.

Cheers!

   

3 0
3 years ago
Seventy new jobs are opening up at an automobile manufacturing plant, and 1000 applicants show up for the 70 positions. To selec
777dan777 [17]

Answer:

  • <em>As explained below, given that the score of the person is among the 0.03125 fraction of the best applicants, </em><u><em>he can count on getting one of the jobs.</em></u>

<em></em>

Explanation:

The hint is to use <em>Chebyshev’s Theorem.</em>

Chebyshev’s Theorem applies to any data set, even if it is not bell-shaped.

Chebyshev’s Theorem states that at least 1−1/k² of the data lie within k standard deviations of the mean.

For this sample you have:

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The number of standard deviations that 84 is from the mean is:

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Thus, the score of the person is 4 standard deviations above the mean.

How good is that?

Chebyshev’s Theorem states that at least 1−1/k² of the data lie within k standard deviations of the mean. For k = 4, that is:

  • 1 - 1/4² = 1 - 1/16 = 0.9375

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Since there are 70 positions and 1,000 aplicants, 70/1,000 = 0.07. The compnay should select the best 0.07 of the applicants.

Given that the score of the person is among the 0.03125 upper fraction of the applicants, this person can count of geting one of the jobs.

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igomit [66]

Answer: A. a well-known and well-respected brand name

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