Answer: The correct answer is $16.1 per unit.
Explanation:
C(x) = 9000 + 6x + 0.05x²
C(100) = 9000 + 6 × 100 + 0.05(100)²
= 9000 + 600 + 500
= 10,100
C(102) = 9000 + 6 × 102 + 0.05(102)²
= 9000 + 612 + 520.5
= 10,132.2
Now, the average rate of change of C with respect to x when production level changed from x = 100 to x = 102 is :
⇒ 
= 
= $16.1 per unit
Decrease in price of a substitute. Increase in price of a complement. Decrease in income if good is normal good.
Answer:
a.
<u>Differential analysis on whether to continue or discontinue Product Tango</u>
Continue Discontinue
Sales $195,200 $0
Less Variable Costs :
Cost of Goods Sold ($115,600) $0
Selling Expenses ($33,000) $0
Less Fixed Costs :
Fixed Costs ($58,300) ($58,300)
Net Income/ (Loss) ($12,300) ($58,300)
b
Continue with Product Tango. Because it brings a contribution towards the Fixed Costs helping to achieve a smaller loss margin.
Explanation:
From the differential analysis, Fixed costs will remain the same whether the product is discontinued or not. This is because they are centrally controlled. Only the variable costs would change.
Answer:
0.85
Explanation:
Given that
Dropped percentage of tuition and fees = 14%
Enrollment fall from 8,400 to 7,400
So, the cross elasticity between the two schools is
= Percentage change in quantity demanded of one good ÷ Percentage change in price of another good
where,
Percentage change in quantity demanded of one good equals to
= ($7,400 - $8,400) ÷ ($8,400)
= -11.9%
And, the percentage change in price of another good is -14%
So, the cross elasticity is
= -11.9% ÷ -14%
= 0.85
Keep it somewhere or forget all about it or ask your parents to put it somewhere but there not going to use it