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nika2105 [10]
2 years ago
10

Globe Travel Agency sells Spring Break trips to University of Houston undergraduate students. The fixed cost of Globe is $100,00

0 and its variable cost is $400 for every student who takes the trip Globe offers. The price elasticity of demand is -2.5 at all levels of price. At present, the price of the trip is $600/student and, at this price, demand is 1200 units. Assume that the number of trips sold always equals demand.
Required:
Compute the breakeven quantity at current price, P =$600.
Business
1 answer:
Usimov [2.4K]2 years ago
5 0

Answer:

the breakeven quantity at current price is 500 units

Explanation:

The computation of the  breakeven quantity at current price is shown below:

Breakeven point = Fixed cost ÷ (Price per unit - variable cost per unit)

= $100,000 ÷ ($600 - $400)

 = 500 units

Hence, the breakeven quantity at current price is 500 units

We simply used the above formula so that the correct units could arrive

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Answer:

The price of baseball bats (a complementary good) increased

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Explanation:

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Suppose the economy's production function is ???? = ????K 0.3???? 0.7 . If K = 2000, N = 100, and A = 1, then Y = 246. If K and
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Answer:

Y=38.8

Y will increase by 38.8

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Y=284.8

Explanation:

Y=A. F(K, L)

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Therefore

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4 0
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4 0
3 years ago
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7. on an average hourly basis, how much does butcher enterprises spend on wages and benefits, respectively, in dollars?
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The compensation survey showed an average hourly rate of $23 for total compensation. Of this amount, wages are $16 per hour and benefits are $7 per hour. In comparison, Butcher Enterprises spends an average hourly rate of $19 for total compensation. Of this amount, 70 percent is allocated for wages.

1-7. On an average hourly basis, how much does Butcher Enterprises spend on wages and benefits, respectively, in dollars?

Answer:

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Hourly benefit = 0.3 * $19 =$5.7

Explanation:

Butcher enterprises spends average hourly rate of total compensation = $ 19

Allocation for hourly wage = 70%

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Hourly wage = 0.7 * $19 = $13.3

Allocation for hourly benefit = 30%

So therefore;

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