Answer:
The total effect is 35 out of which income effect is 15 and substitution effect is 20.
Explanation:
Ross has an income of $1440.
The price of chocolates (Px) is $10 and donuts (Py) is $9.
The utility function is given as
U = 0.5xy
Before price rise, Budget line:
1440 = 10x + 9y,
Consumption is optimal when
0.5y / 0.5x= 1.11
y = 1.11x
Substituting in budget line,
1440 = 10x + 9y = 10x + 9(1.11x)
1440 = 10x + 9.99x
19.99x = 1440
x = 72
y = 1.11x = 79.92 = 80
After price rise,
Py = 16.
New budget line:
1440 = 10x + 16y,
Price ratio
=
= 0.625
And,
y = 0.625x
Substituting in new budget line: 1440 = 10x + 16y
1440 = 10x + 16(0.625)x
1440 = 20x
X = 72
Y = 0.625x = 45
So, total effect (TE)
= Decrease in consumption of y
= 80 - 45
= 35
With previous (x, y) bundle,
U = 0.5xy
U = 0.5 x 72 x 80
U = 2880
Keeping utility level the same & substituting,
y = 0.625x in utility function:
28800 = 0.5xy
x = 96
Now, putting the value of x,
y = 
y = 
y = 60
Substitution effect (SE)
= 80 - 60
= 20
Income effect
= TE - SE
= 35 - 20
= 15
Answer:
Cost per equivalent unit for conversion costs for the month = $8.262
Explanation:
The weighted average cost of valuation does not separate the opening inventory from the units newly introduced when accounting for completed units in a production period.
To determine the cost per equivalent units using Weighted Average Method, follow the steps below:
<em>Step 1: Determine the equivalent Unit</em>
Completed units = 25000+ 97000- 28000 = 94000
Workings Equiva. Units
Completed units 94000 (94000 *100%) = 94,000
Closing WIP 28000 (28,000 * 10%) = 2,800
Total Equivalent units 96,800.00
<em>Step 2 : calculate total conversion cost </em>
= 51820+747970= 799,790.00
<em />
<em>Step 3 = Cost per Equivalent unit per conversion cost</em>
Cost per unit = Total conversion cost/total Equivalent units
= 799,790.00 / 96,800.00
= $8.262
Cost per equivalent unit for conversion costs for the month = $8.262
Answer:
net present value is
$228,652.29-$200,000.00
=$28,652.29.
Explanation:
Net cashflows
Year 1= 100000
Year 2= 90000
Year 3= 95000 (75000+ 20000)
Totals= 285000
Present value at 12%
Formula for present value=
1/(1+r)^n
where r= interest rate
n= number of years
Year 1=1/(1+0.12)^1 =0.8929
Year 2=1/(1+0.12)^2= 0.7972
Year 3=1/(1+0.12)^3 =0.7118
Present value of net cash flows =
Present value × net cash flows.
Year 1= 0.8929 × 100000= $89,285.71
Year 2=0.7972 ×90000= $71,747.45
Year 3=0.7118×95000= $67,619.12
Totals = $228,652.29
Amount invested= $(200,000.00)
Net present value (NPV) is referred to as the difference between the present value of cash inflows and the present value of cash outflows over a period of time. Net Present Value is used in capital budgeting and investment planning to analyze the profitability of a projected investment or project.
Therefore, net present value is
$228,652.29-$200,000.00
=$28,652.29.
from the information about chobani in the case and at the start of the chapter, (a) who did hamdi ulukaya identify as the target market for his first cups of greek yogurt and (b) what was his initial "4ps" marketing strategy?
a. Target market for Chobani Greek Yogurt. Hamdi Ulukaya saw his Chobani Greek Yogurt as appealing to all American consumers—the mass market—when he first introduced his Greek Yogurt in the United States. That is exactly the reason that he wanted distribution in the dairy cases of major U.S. grocery and supermarket chains, and not in their niche sections or in health food or specialty stores.
Now, with the introduction of its Champions line of Greek Yogurts, Chobani is reaching the kids' market segment. With its 2013 introduction of Chobani Bite in a smaller 3.5-ounce cup, Chobani is trying to reach a "snack" market segment. And with Chobani Flip, it is trying to reach an experimenting, gourmet market segment who add "mix-ins" to regular Chobani Greek Yogurt.
b. Chobani's initial 4Ps marketing strategy. Consists of the following marketing actions:
· Product strategy. Offer a Greek Yogurt for a mass market that is healthier than competing U.S. yogurts and does not have artificial ingredients and preservatives.
· Price strategy. Priced affordably at $1.29 for a single-serve cup that is accessible to all.
What is Marketing strategy?
A marketing strategy is a long-term plan for attaining a business' objectives through an understanding of client needs and the development of a distinct and long-lasting competitive advantage. It includes everything, from choosing which channels to utilize to contact your customers to figuring out who they are.
To learn more about marketing strategy from the given link:
brainly.com/question/25640993
Answer:
The correct answer is a. more elastic demands.
Explanation:
There are some goods whose demand is very price sensitive, small variations in their price cause large variations in the quantity demanded. It is said of them that they have elastic demand. The goods that, on the contrary, are not sensitive to price are those of inelastic or rigid demand. In these large variations in prices can occur without consumers varying the quantities they demand. The intermediate case is called unit elasticity.
The elasticity of demand is measured by calculating the percentage by which the quantity demanded of a good varies when its price varies by one percent. If the result of the operation is greater than one, the demand for that good is elastic; If the result is between zero and one, its demand is inelastic.
The factors that influence the demand for a good to be more or less elastic are:
1) Type of needs that satisfies the good. If the good is of first necessity the demand is inelastic, it is acquired whatever the price; On the other hand, if the good is luxurious, the demand will be elastic since if the price increases a little, many consumers will be able to do without it.
2) Existence of substitute goods. If there are good substitutes, the demand for good will be very elastic. For example, a small increase in the price of olive oil can cause a large number of housewives to decide to use sunflower.
