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dimaraw [331]
3 years ago
8

The exclusive Swink Golf Driving Range has had a standard price of ​$16.00 per hour. The facility has 30 golfing​ stations, with

average usage of 40​%, 9 hours a​ day, 7 days a week. Morgan​ Swink, the​ owner, would like to enhance revenue. He proposes new pricing at ​$12 per hour on weekdays and ​$23 per hour on weekends. He estimates that weekday usage will increase to 50​% and weekend usage will remain at 40​%, even with the price increase. Variable cost is a consistent ​$3 per hour. Which strategy is​ better? Total revenue under the current pricing is ​$ nothing ​(round your response to the nearest​ dollar).
Business
1 answer:
torisob [31]3 years ago
7 0

Answer:

The strategy of total revenue under new pricing is better because it has $ 972 more than current pricing policy

Explanation:

Total revenue under current pricing per week = Average usage % * Number of golfing station* Price per hour * number of hours per day * number of days per week

= \frac{40}{100} * 30 * $16 * 9 * 7

= $ 12,096

Total revenue under new pricing per week = Weekday revenue + Weekend revenue

= (Average usage % * Number of golfing station* Price per hour * number of hours per day * number of weekdays per week) + (Average usage % * Number of golfing station* Price per hour * number of hours per day * number of weekends per week)

= (\frac{50}{100} * 30 * $12 * 9 * 5) + (\frac{40}{100} * 30 * $23 * 9 * 2)

= $ 8,100 + $ 4,968

= $ 13, 068

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The type of employee that would most likely be satisfied and perform at a high level is motivated employee.

<h3>Who is Hackman and Oldham?</h3>

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8 0
2 years ago
Red Co. acquired 100% of Green, Inc. on January 1, 2012. On that date, Green had inventory with a book value of $42,000 and a fa
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 70,000 lesser value on Equipment amortized over 5 years: 14,000

We will amortize the building at a rate of 19,000 dollar per year

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