This is an example of a shopping product. It a kind of merchandise
that needs consumer study and assessment of brands. There are two specific
shopping products and these are homogeneous and heterogeneous.
Homogeneous products are observed by consumers as very like in nature and the
final acquisition is typically resolute on the lowest price while heterogeneous
products are merchandises with features that are expressively diverse
from each other, which makes it hard to substitute one product for another.
Answer:
Net operating income= $26,140
Explanation:
Giving the following information:
Fixed costs= $23,000
The contribution margin ratio is 63%.
Sales= $78,000
<u>First, we need to calculate the contribution margin:</u>
Contribution margin= contribution margin ratio*sales
Contribution margin= 0.63*78,000
Contribution margin= 49,140
Net operating income= 49,140 - 23,000= $26,140
Answer:
In the first range of prices (with PED 15 - 2.5) as the price of the good or service falls, total revenue should increase. Imagine that a 1% reduction in price will result in a 15% increase in quantity demanded. The same happens when PED = 2.5, since a 1% reduction will increase quantity demanded by 2.5%.
e.g. price = $100, quantity demanded = 100, total revenue = $10,000
- price falls to $99, quantity demanded increases to 115, total revenue = $11,385
- price falls to $99, quantity demanded increases to 102.5, total revenue = $10,147.50
On the other range (PED = 1.5 - 0.75) as the price of the good or service falls, at first total revenue will increase but then it will decrease.
e.g. price = $100, quantity demanded = 100, total revenue = $10,000
- price falls to $99, quantity demanded increases to 101.5, total revenue = $10,048.50
- price falls to $99, quantity demanded increases to 100.75, total revenue = $9,974.25
Answer:
Monopolistic
Explanation:
The type of competition that occurs in a competitive market without identical producers is a monopolistic one.
Answer: 554 units
Explanation:
The formula to calculate the optimal average number of units in the inventory will be calculated as:
= EOQ/2
EOQ is the economic order quantity and this will be:
= √(2 × Annual demand × Ordering cost / Carrying cost
= √(2 × 202,801 × 9.33)/3.08
= ✓1228658.5
= 1108.5
Therefore, the optimal average number of units in the inventory will be:
= EOQ/2
= 1108.5/2
= 554.25
= 554 units approximately
