Answer:
Provided in Explanation
Explanation:
This is a very general question however I’ll try to answer it to the best of my knowledge.
If I use my own assumptions then these will be the Projections:
Selling Price $79.99 Selling Price $69.99
Cost of Sales/unit $40.00 Cost of Sales/unit $40.00
Expenses/unit $15.00 Expenses/unit $15.00
Demand @ $79.99 1000 Demand @ $69.99 1200
Sales $79,990.00 Sales $83,988.00
Cost of Sales $40,000.00 Cost of Sales $48,000.00
Expenses $15,000.00 Expenses $18,000.00
Profit $24,990.00 Profit $17,988.00
The final decision however relies on the Price Elasticity of the Product. If the Product is Price elastic then lowering the Price will lead to a significant rise in Demand. However if the Product is Price inelastic then lowering the Price will not lead to a significant rise in Demand and thus profit margins will be lowered. If the Product is Price inelastic then it is better to increase prices in order to gain more profits. In the case of Unit Elasticity the change in Demand will be at the same proportion as price change so it won’t be of any use to change the Price.
Increased productivity
i kind of took context clues to answer this question
Answer: Quantity of ice skates demanded will fall
Explanation:
When ice skating becomes less popular, the demand for ice skates in the U.S market will decline. Since, this is a change in preference and not in price of ice skates, the demand curve will shift to the right (Change in demand (shift) not change in quantity demanded(movement along the same demand curve).
So, the demand curve for ice skates will shift to the left leading to a fall in the price of ice skates and the quantity of ice skates demanded.
Quantity of ice skates demanded will fall, but it is due to the leftward shift in the demand curve.
Answer:
15.8%.
Explanation:
Calculation for XYZ's cost of equity using the CAPM
Using this formula
Cost of equity = Rrf + βi[E(Rm) - Rrf]
Let plug in the formula
Cost of equity= 6% + 1.06×[15.25% - 6%]
Cost of equity= 6% + 1.06×9.25%
Cost of equity= 15.8%
Therefore the Cost of equity will be 15.8%
Answer:
b) not ok and both broker and agent can be in trouble for lack of supervision
.
Explanation:
Based on the information provided within the question it can be said that this scenario is not ok and both broker and agent can be in trouble for lack of supervision
. This is because the agent's main job is to put the client's needs first and show the client all offers and possible choices, and guide them. The agent has no authority to hold back any information from the client and should not be bringing personal feelings into a business environment.