1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
vova2212 [387]
2 years ago
9

Suppose that​ Roots' marginal cost of a jacket is a constant ​$100.00 and the total fixed cost at one of its stores is ​$1 comma

000 a day. This store sells 15 jackets a​ day, which is its​ profit-maximizing number of jackets. Then the stores nearby start to advertise their jackets. The Roots store now spends ​$2 comma 000 a day advertising its​ jackets, and its​ profit-maximizing number of jackets sold jumps to 55 a day. What is this​ store's average total cost of a jacket sold before the advertising begins and after the advertising begins. ​>>> Answer to 2 decimal places. Can you say what happens to the price of a Roots​ jacket, Roots'​ markup, and​ Roots' economy?
Business
1 answer:
Nesterboy [21]2 years ago
8 0

Answer:

What is this​ store's average total cost of a jacket sold before the advertising begins and after the advertising begins.

before advertising costs increase:

marginal cost is constant, so we can state that the total variable costs are $100 per jacket

total fixed costs = $1,000 per day / 15 jackets = $66.67 per jacket

average total cost per jacket before increasing advertising expense = $100 + $66.67 =) $166.67

after advertising costs increase:

total variable costs are $100 per jacket

total fixed costs = $2,000 per day / 55 jackets = $36.36 per jacket

average total cost per jacket after increasing advertising expense = $100 + $36.36 =) $136.36

Can you say what happens to the price of a Roots​ jacket, Roots'​ markup, and​ Roots' economy?

Roots is experiencing economies of scale since average total cost per jacket decreased as the total number of jackets sold increased. But in order to sell that new amount of jackets, their price probably decreased. If the price hadn't changed, then the profit maximizing number of jackets sold per day would be close to 30, but it clearly isn't. That means that the company's markup decreased, but the company is now better off since it is maximizing its profits even though its expenses increased and the markup decreased.

You might be interested in
Name 4 challenges of the market environment​
Korolek [52]

Explanation:

Challenge 1: Changes in how buyers buy.

Challenge 2: Competition.

Challenge 3: Need for top talent.

Challenge 4: Competing on price only.

6 0
3 years ago
Read 2 more answers
Which is a natural property of nicotine?
Romashka-Z-Leto [24]
Nicotine has a stimulant effect and therefore is addictive. The addictive effect is noticable in people who still smoke cigarettes even though they are aware of the very real dangers of lung cancer induced by lengthy cigarette smoking.
3 0
3 years ago
Read 2 more answers
Cuales son las necesidades en el mercado en el año actual ?
muminat

Answer:

what

Explanation:

7 0
3 years ago
A contribution approach income statement ______. reports both gross margin and net income is prepared primarily for external rep
kvasek [131]

Answer:

separates costs into fixed and variable component

can assist with management decision making

Explanation:

The contribution margin may be defined as when we deduct the expenses of the variable from sales. Where contribution margin shows the organization revenue is contributing to net income and fixed cost.

The statement of contribution margin income tells of the earnings at various stages of operations.

This report of income is not used for external reporting purposes but rather for internal decision making by the management.

Therefore according to the above description, the last two statements are correct.

6 0
2 years ago
John has applied for a job as the finance manager for a company. After completing his application and submitting his resume, the
MissTica

There are two types of inquiries into your credit history: hard and soft.

Hard inquiries happen when lenders view your credit history in an attempt to lend you money. These will affect your credit scores.

Soft inquiries do not appear on your credit file and do not affect your credit history. These inquiries happen when you check your own credit or in this case a job checks your credit.

5 0
3 years ago
Other questions:
  • Banks and other lending institutions​ ________.
    8·1 answer
  • Xavier Co. wants to purchase a machine for $37,000 with a four year life and a $1,000 salvage value. Xavier requires an 8% retur
    12·2 answers
  • Which of the following accurately explain the importance of the ceteris paribus assumption for an economic model? Check all that
    15·1 answer
  • Select two skills and two personal values from the list in the article that you feel you have to offer in the workplace. Discuss
    8·1 answer
  • The emergency planning process includes the following steps:
    8·1 answer
  • Executive headhunters have approached Charles about taking the position of senior vice president of marketing for a well-known c
    15·1 answer
  • Consider the following income statement for the Heir Jordan Corporation:
    14·1 answer
  • Which leadership style best describes this Spider-Man? Why?
    5·1 answer
  • At which stage of problem solving should you discuss the problem with colleagues?
    6·1 answer
  • Just want to say thank you to everyone on this app thanks to you i passed 7th grade and i know i could not of do it with out you
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!