The emphasis in marketing is on the identification and satisfaction of:

A local pizzeria sells 500 large pepperoni pizzas per week at a price of $20 each. Suppose the owner of the pizzeria tells you t

Zigmanuir [339]

Let
z----------------- > Price Elasticity
x----------------- > % Change in Quantity
y----------------- > % Change in Price

we Know that

Price Elasticity = (% Change in Quantity) / (% Change in Price)----> z=x/y

z=-2
y=-10%
x= ?
z=x/y---------------- > x=z*y=(-2)*(-10)=20 %
% Change in Quantity=20%
Part A) how many pizzas will he sell if he cuts his price by 10%?
He will sell (500 +20 %)----------> 500*1.2=600 pizzas per week

the answer part A is 600 pizzas per week

Part B) how will his revenue be affected?
initial revenue per week
500 pizzas*$20 =$10000

final revenue per week
(500 pizzas+20%) *($20-10%)=600 pizzas*$18=$10800
$10800-$10000=$800

the answer part B is
His revenue will increase $800 per week

4 0

3 years ago

A cash flow series is increasing geometrically at the rate of 7% per year. The initial payment at EOY 1 is $4 comma 000, with

Nana76 [90]

Answer:

$ 83,921.45

Explanation:

The present value of the cash flows can determined by discounting to today's terms all of the cash flows involved.

The cash flows for the first years were discounted using a 14% discount rate while the remaining years were discounted at 5% as shown in the attached.

Download xlsx

5 0

3 years ago

While examining cash receipts information, the accounting department determined the following information: opening cash balance

andre [41]

Answer:

Explanation:

Before passing the journal entry, first, we have to compute the over and short cash balance till date. The computation is shown below:

Ending cash balance = Opening cash balance + cash sales

= $150 + $988.62

= $1,138.62

And, the cash balance is $1,125.74

So, the remaining balance is $12.88 which represent short cash balance

The journal entry is shown below:

Cash A/c Dr $975.74

Short cash A/c Dr $12.88

To Sales A/c $988.62

(Being cash count recorded)

The left balance would be debited to the cash account

4 0

3 years ago

Social surplus is the ____________. A. total value from trade in a markettotal value from trade in a market. B. difference betw

shepuryov [24]

Answer:

The correct answer is letter "A": total value from trade in a market.

Explanation:

Canadian economist Alex Tabarrok (born in 1966) explains social surplus as the sum of consumer surplus, producer surplus, and bystanders surplus. Tabarrok takes an integrative approach in consumer surplus by stating social surplus encompasses every economic trade in the market rather than only consumers and producers surplus.

Besides, Tabarrok believes when there are major external costs or benefits, the market will not reach its social surplus.

4 0

3 years ago

Breakeven analysis: Barry Carter is considering opening a music store. He wants to estimate the number of CDs he must sell to br

Scilla [17]

Answer and Explanation:

The computation is shown below:

a. The operating break even point in number of CD is

= Fixed operating cost ÷ (Selling price per unit - variable operating cost)

= $73,500 ÷ ($13.98 - $10.48)

= 21,000 CDs

b. Now the total operating cost is

= Fixed cost + Quantity × variable cost per unit

= $73,500 + 21,000 CDs × $10.48

= $293,580

c. If he can sell 2,000 CDs per month than annual sale is 24,000 CDs and the break even is exceeded than 3,000 CDs by taking a difference of 24,000 CDs and 21,000 CDs . So, it should go to the CD business

d. Now the EBIT is

= (Selling price × Quantity) - Fixed cost - (Variable price × Quantity)

= ($13.98 × 24,000) - $73,500 - ($10.48 × 24,000)

= $335,520 - $73,500 - $251,520

= $10,500

We simply applied the above formulas

8 0

3 years ago