True or False: Evaluation of a Request for proposal is based solely on price.

Market equilibrium Consider the demand function of tofu given by Qd = 150 – 10p + 5pb and the supply function of tofu given by Q

ser-zykov [4K]

Answer:

a) Qs = 50 + 20p - 7ps

= 50 + 20p - 7×(2)

= 50 + 20p - 14

= 36 + 20p

At equilibrium, $Q_{d}$ = $Q_{s}$

So, 150 - 10p + 5 $p_{b}$ = 36 + 20p

So, 20p + 10p = 30p

= 150 - 36 + 5 $p_{b}$

= 114 + 5 $p_{b}$

So, p = (114/30) + (5/30) $p_{b}$

= 3.8 + 0.17 $p_{b}$

Thus, $p_{e}$ = 3.8 + 0.17 $p_{b}$

Q = 36 + 20p

= 36 + 20(3.8 + 0.17 $p_{b}$ )

= 36 + 76 + 3.4 $p_{b}$

= 112 + 3.4 $p_{b}$

Thus, $Q_{e}$ = 112 + 3.4 $p_{b}$

b) $p_{e}$ = 3.8 + 0.17 $p_{b}$

= 3.8 + 0.17×(5)

= 3.8 + .85

= 4.65

$Q_{e}$ = 112 + 3.4 $_{b}$

= 112 + 3.4(5)

= 112 + 17

= 129

c) Qd = 150 - 10p + 5pb = 150 - 10(2.5) + 5(5) = 150 - 25 + 25 = 150

Qs = 36 + 20p = 36 + 20(2.5) = 36 + 50 = 86

Thus, there is excess demand as $Q_{d}$ > $Q_{s}$

d) New $Q_{d}$ = 180 - 10p + 5 $p_{b}$

= 180 - 10p + 5×(5)

= 180 - 10p + 25

= 205 - 10p

Now, new $Q_{d}$ = $Q_{s}$ gives,

205 - 10p = 36 + 20p

So, 20p + 10p = 205 - 36

So, 30p = 169

So, p = 169÷30

So, $p_{e}$ = 5.63

Q = 205 - 10p = 205 - 10×(5.63) = 205 - 56.3 = 148.7

So, $Q_{e}$ = 148.7

6 0

3 years ago

You are analyzing Jillian’s Jewelry (JJ) stock for a possible purchase. JJ just paid a dividend of $1.50 yesterday. You expect t

disa [49]

Answer:

A. D1 = 1.50*1.06 = 1.59

D2 = 1.59*1.06 = 1.69

D3 = 1.69*1.06 = 1.79

B. PV of D1=(1.50*1.06)/1.13^1=1.41

PV of D2=(1.50*1.06^2)/1.13^2=1.32

PV of D3=(1.50*1.06^3)/1.13^3=1.24

PV of all dividend = (1.50*1.06)/1.13^1 + (1.5*1.06^2)/1.13^2 + (1.5*1.06^3)/1.13^3

PV of all dividend = 1.59/1.13 + 1.6854/1.2769 + 1.786524/1.442897

PV of all dividend = 1.407079646 + 1.319915 + 1.238150748

PV of all dividend = 3.965145814288893

PV of all dividend = 3.97

C. PV = 27.05/(1+13%)^3

PV = 27.05/(1.13)^3

PV = 27.05/1.442897

PV = 18.74701

PV = 18.75

D. The most you should pay for it :

= (1.50*1.06)/1.13^1+(1.5*1.06^2)/1.13^2+(1.5*1.06^3)/1.13^3+27.05/1.13^3

=22.71

E. Value = (1.50*1.06)/(13%-6%)

Value = 1.59 / 7%

Value = 1.59 / 0.07

Value = 22.714286

Value =22.71

F. No, the value is not dependent on the holding period, you can see from above that the value of infinite time period estimated in E equals to the value calculated when there was 3 years holding period.

5 0

3 years ago

The Statement of Net Position of South State University, a government-owned university, as of the end of its fiscal year June 30

alexandr402 [8]

Answer:

Explanation:

Base on the scenario been described in this question, we can use the following method to be solve the question below using Microsoft word we have the solution in the image attached file below

5 0

3 years ago

What is one cost of avoiding insurance?

kkurt [141]

Answer: One of the costs of not having insurance is the cost of repairing. Another cost is paying insurance premiums. Losses caused by a lack of insurance are the price of not having insurance.

8 0

2 years ago

Garth Corporation sells a single product. If the selling price per unit and the variable expense per unit both increase by 10% a

Sonja [21]

Answer:

D) CM per unit: Increases

CM ratio: No change

BE in units: Decreases

Explanation:

Let us suppose that

In the first case

The selling price per unit is $100

And, the variable cost per unit is $50

The fixed expense is $100,000

So, the contribution margin per unit

= $100 - $50

= $50

The CM ratio is

= $50 ÷ $100

= 50%

And, the break even point in units is

= $100,000 ÷ $50

= 2,000 units

Now if the selling price per unit and the variable expense per unit both increase by 10%

So,

The selling price per unit is $100 × 1.10 = $110

And, the variable cost per unit is $50 × 1.10 = $55

The fixed expense is $100,000

So, the contribution margin per unit

= $110 - $55

= $55

The CM ratio is

= $55 ÷ $110

= 50%

And, the break even point in units is

= $100,000 ÷ $55

= 1,818 units

Hence, the last option is correct

8 0

3 years ago