Based on the fact that the demand elasticity is 0.91, the revenue-maximizing decision would be to d. increase tuition, which would generate more revenue.
<h3>Why is this the revenue-maximizing decision?</h3>
When the demand elasticity is below 1 as is the case here, it means that demand is inelastic.
When demand is inelastic, an increase in price will lead to a lower decrease in demand. This means that increasing prices for enrollment in this college will bring in revenue because there won't be much change in demand.
In conclusion, option D is correct.
Find out more on demand elasticity at brainly.com/question/6791468.
Answer:
A) the implied 1 year forward rates respectively 9,8 , 11,81 and 13,83 according to the formular
Explanation:
b) pure expactations true then
1.108²/1.098 - 1 =11.81% for a two year bond
1.118²/1.108 - 1 = 12.81% for a three year bond
The answere: The will be a shift upwards in next years curve.
c) Assume a par of 1000
in the next year a two year zero coupon bond will be a year zero and sell at 1000/1.1181 = 894.37 to get the return we take divide selling prices at year zero the trading price according to ytm is 1000/1.108² =814.55
therefore expected return 894.37/814.55= 9.79%
c2 the zero coupon bond at three year zero is trading at 1000/1.1282 = 886.446 and according to the ytm the coupon is trading at 1000/13.83^3= 715.607
therefore the expected return is
785.711/715.607=9.79%
Answer:
a. Gross profit rate = Gross profit / sales
= <u> $710,000 * 100</u>
$1,230,000
= 57.72%
b. <u>Supreme Operating Income </u>
Gross Profit $710,000
Operating expenses <u>(440,000)</u>
Operating Profit <u> 270,000</u>
<u />
c. Return on Asset = Return/ Average Asset
= <u>$390,000 * 100 </u>
$4,000,000
= 9.75%
d. Return on equity = Return / Average equity
= <u>$390,000 * 100 </u>
$2,400,000
= 16.25%
e. Price-earnings ratio = Market price per share / earnings per share
= $88/ $4
= 22
Explanation:
Computation of Gross profit
$'000
Net Sales 1,230
Cost of goods sold <u>(520)</u>
Gross Profit 710
Answer: The correct answer is "c. employs customer relationship management strategies.".
Explanation: Customer relationship management strategies involve a management model of the entire organization, based on customer satisfaction (or market orientation according to other authors). It is an approach to manage the interaction of a company with its current and potential customers.
Answer:
The correct answer is A. A successful firm will stake out a position unique in some manner from its rivals.
Explanation:
A competitive advantage is any characteristic of a company, country or person that differentiates it from others by placing it in a superior relative position to compete. That is, any attribute that makes it more competitive than the others.
The attributes that contribute to having a comparative advantage are innumerable. But we can cite as an example the advantageous access to natural resources (such as high-grade minerals or low-cost energy sources), highly skilled labor, geographical location or high barriers to entry, which can be enhanced if we have a product that is hardly imitable Or we have a great brand.
