Answer:
A
Explanation:
While dealing with a DOG situation, it is best to disinvest in the product and focus on other products with greater market potential
3300 units of q - drive.
To get the break even units of q drive you need to get the weighted average contribution margin of the two products
To get it, simply multiply the sales mix ratio to its contribution margin per product and add the two to get the wacm.
Q-drive cm=$120-60=60*30%
Q-drive plus cm= $165-75*70%
the wacm=$81
then divide the fixed cost by the wacm
$891000 / $81=11000 units
then to get the break even units of q-drive simply multiply the sales mix ratio to the break even units
11000 units*30% =3300 units.
Statement that explains Marginal revenue and it can be computed for a monopolist is C:sold.c.change in total revenue per one unit increase in quantity sold.
- Marginal revenue can be regarded as central concept in microeconomics which focus on additional total revenue that us been gotten by increasing product sales by 1 unit.
- In monopolist,it can be computed by change in total revenue with respect to a unit increase that is been sold.
Therefore, option C is correct.
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Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
1.99%
Explanation:
Calculation for your return if you sold the fund at the end of the year
Return={[$20 * (100%-6%) * (1.10 - .015)] -$20}/$20
Return={[$20 * .94 * (1.10 - .015)] -$20}/$20
Return = 1.99%
Therefore your return if you sold the fund at the end of the year would be 1.99%