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DerKrebs [107]
3 years ago
12

g each collectible ship requires one pint of high-quality paint at a cost of $25 per pint. considering increasing the selling pr

ices of both models by 7.5%, which will cause volume of sales for both models to decrease by 12%. all other expenses would remain constant. should management implement this change and what is the best explanation
Business
1 answer:
bearhunter [10]3 years ago
3 0

Answer:

Increasing the sales price is a bad idea since total revenues will decrease.

Explanation:

The question is incomplete since we are not given the information about other costs, but we are given enough information to calculate the price elasticity of demand:

PED = % change in quantity demanded / % change in price = -12% / 7.5% = -1.6 or |1.6| in absolute terms.

Since the PED is |1.6|, it is price elastic. This means that a change in price will result in a proportionally larger change in quantity demanded. E.g. assume original price is $100 and the original quantity demanded is 100. Total revenue = $10,000. If the price increases to $107.50, the quantity demanded will decrease to 88, resulting in a total revenue of $9,460.

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Briefly explain the field of money management.
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Answer:

Money management simply means liquidity management.This in business parlance means the ability of the organisation to have to funds required as and when due

Explanation:

Strictly means being able to receive cash from customers in short time and the ability to pay suppliers on time which means neither too much in cash than needed or too little

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Answer:

a. long-term capital gain.

Explanation:

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3 years ago
An aggregate production function shows​ ________. A. the relationship between a​ country's output and its price level B. various
Maru [420]

Answer:

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Explanation:

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3 years ago
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Answer:

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