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mr Goodwill [35]
3 years ago
6

You are the manager of a theater. At present the theater charges the same admisssion price of $8 to all customers, regardless of

age. You propose a two-tier pricing scheme: $5 for children under the age of 12 and $10 for adults. You tell your supervisor that your proposal is likely to increase revenues. What must be the price elasticity of demand if your proposal is to achieve its goal of raising revenue? Explain your answer.
Business
1 answer:
Goshia [24]3 years ago
7 0

Answer:

Explanation:

Provided that the demand is inelastic, there would be an increment in revenue.

Total revenue is calculated as the quantity of a good sold multiplied by its price.

There is a close interrelation between price elasticity of demand and total revenue, in the sense that they deal with the same two variables - which are price and quantity.

If the product has an elastic demand, revenue can be increased by decreasing the price of the good. Q will increase at a greater rate, while  P will decrease,  thereby, increasing the total revenue.

If the product has an inelastic demand, then the prices of goods can be increased and sold slightly less of that item but a higher revenue must be obtained.

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Doogan Corporation makes a product with the following standard costs: Standard Quantity or HoursStandard Price or Rate Direct ma
telo118 [61]

Answer:

Direct material quantity variance= $6,300 unfavorable

Explanation:

Giving the following information:

Direct materials 2 grams $7.00 per gram

The company produced 4,600 units in January using 10,100 grams of direct material.

<u>To calculate the direct material quantity variance, we need to use the following formula:</u>

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (2*4,600 - 10,100)*7

Direct material quantity variance= $6,300 unfavorable

5 0
2 years ago
Sawaya Co., Ltd, of Japan, is a manufacturing company whose total factory overhead costs fluctuate considerably from year to yea
coldgirl [10]

Answer:

Explanation:

1. Indirect Material variable cost Per Direct Labor HR 5000000/50000=100

Indirect Material (variable) 100*75000 =7500000

Rent Fixed 6000000

Hence total Maintenace Fixed =17625000-7500000-600000= 4125000

2.

                   Low            High      Change

Cost 3250000 4125000 875000 [4125000-3250000]

Activities 50000          75000   25000

variable Portion of Maitencance cost =875000/25000= 35.00

Fixed cost=4125000-75000*35=1500000

Variable cost=35

cost formula for maintenance= 1500000+35b

3.

Indirect Material (variable) 100*70000 = 7000000

Rent Fixed                      6000000

Maintenance cost = 1500000+35*70000=3950000

5 0
2 years ago
If the U.S. capital markets are not informationally efficient, ______.A. the markets cannot be allocationally efficientB. system
Firdavs [7]

Answer:

A. the markets cannot be allocationally efficient

Explanation:

If the U.S. capital markets are not informationally efficient, the markets cannot be allocationally efficient

5 0
3 years ago
Benchmarking involvesA. comparing how different companies perform various value chain activities and then making cross-company c
Vinvika [58]

Answer:

Letter A is correct. <u>Comparing how different companies perform various value chain activities and then making cross-company comparisons of the costs of these activities.</u>

Explanation:

The most suitable alternative to this question is letter A, because the definition Benchmarking can be defined <u>as the process and search for in-depth knowledge about your competitors and the way they carry out their activities. </u>

It consists of investigating competitors in order to compare operations, products and services between a company and its main competitors. Through the research of competitors it is possible to better understand the market and adapt the best practices to be successful, in addition to achieving continuous improvement of processes, in addition to reducing errors and costs through the analysis and knowledge of the actions of competing companies.

3 0
2 years ago
Q has an ordinary straight whole life insurance policy for $100,000. Due to a change in circumstances, Q finds that there is now
uranmaximum [27]

Answer:

Add a term rider

Explanation:

To satisfy the need for additional coverage at a low price the Q can add a term life insurance rider.

The addition of a term rider will allow Q for the additional coverage to be put into place at an affordable price, without having to acquire another policy.

As term rider is a fixed benefit policy thus, ordinary straight whole life will not allow an increase in face amount.

6 0
2 years ago
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