Answer:
Forecasted sales: 25% maximum reduction.
Recommendations: try new ways to increase sales during the months left, or reduce its own cost.
Explanation:
- If sales usually increase between March 1 and June 30, and this period accounts for 50% of annual revenue, if revenue is proportional to sales, a reduction in sales will reduce revenues.
- Between March 1 and June 30 there are 4 months.
- If sales usually pick up in March and this year they were low until the beggining of May, it means that only 2 of the 4 most productive months were higly productive.
- If 50% of sales are concentrated in this 4 months, and this year 2 of the 4 months were not really productive, a maximum 25% of sales (and hence of revenues) may have lost.
- Therefore, revenues may lower by 25% this year.
- To avoid losses, it is advisable to try new ways to increase sales during the months left, that can consist on doing some advertisement and promotions (related to health care linked to exersice for example), that helps increasing sales in the months left, to compensate the looses of the 2 months. If sales cannot be increased, it is advisable to reduce cost to avoid further looses.
We need the book to see what's happening
Answer: $450
Explanation:
Total tickets purchased = 2
The cost of one ticket three months ago = $100
Current price of one ticket = $225
Total cost of two tickets = $225 × 2
= $450
The opportunity cost is the benefit that is foregone by selecting some other alternative. So, here two options are available that either attend the concert or resell the ticket at $450. Therefore, the opportunity cost of attending the concert is $450.
Answer:
True
Explanation:
The statement ' An investment has the option of daily compounding, monthly compounding, or annual compounding. The present value of this investment will be lowest when the investment is compounded daily ' is true.
Investment refers to the process of investing money to earn money.
Investment refers to purchasing goods that may not be used today but are consumed in the future to create wealth.
If someone produced too little of a good, this would suggest that the good was produced to the point where its marginal benefit exceeded its marginal cost.
Both are metrics used in economics for measurement of costs and benefits.
Marginal benefit is the gain the business receives for doing anything "one more time.", while marginal cost is the additional cost the business incurs to produce one more unit.
This means that if someone produced too little of a good, the business gained more than it lost.
