If different types of parol evidence contradict each other, this is the hierarchy of what prevails:
1 answer:
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Answer:
equilibrium quantity = 7
equilibrium price = 107
Explanation:
Data provided in the question:
supply function, p = q² + 6q + 16 ........(1)
demand function is p = −7q² + 2q + 436
Now at equilibrium
Demand = Supply
Thus,
q² + 6q + 16 = −7q² + 2q + 436
or
q² + 6q + 16 + 7q² - 2q - 436 = 0
or
8q² + 4q - 420 = 0
or
2q² + q - 105 = 0
on solving for the roots of q
using the Quadratic Formula where
a = 2, b = 1, and c = -105
a = 2, b = 1, and c = -105
Thus,
The discriminant ( b² - 4ac > 0)
so, there are two real roots.
Therefore,
since,
Quantity cannot be negative
Thus,
q = 7
therefore, substituting q in (1)
p = 7² + 6(7) + 16
or
p = 49 + 42 + 16
or
p = 107
Answer:
1) NOI = $90,240
2) NOI = 29,250
3) NOI = 133,260
4) NOI = 110,190
Explanation:
<em>The question is incomplete.</em>
<em />
<em>Sales (38,000 units) $342,000 ($9.00 per unit)</em>
<em>Variable expenses $228,000 ($6.00 per unit)</em>
<em>Contribution margin $114,000 ($3.00 per unit)</em>
<em>Fixed expenses $42,000 </em>
<em>Net operating income $72,000</em>
1. What is the revised net operating income if unit sales increase by 16%
If unit sales increase, we can calculate this with a 16% increase in the contribution margin.
2. What is the revised net operating income if the selling price decreases by $1.50 per unit and the number of units sold increases by 25%?
A reduction of $1.50 in price means a reduction of the same amount in the contribution margin per unit (CMu), as the variable expenses stay the same .
Also, the contribution margin increases by 25%, for the increase in units sold (q).
3. What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 6%?
The selliing price will be added to the contribution margin per unit.
The units sold are increased 6%.
4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 11%?
The contribution margin per unit, with a increase in price and an increase in variable cost, becomes:
The units sold is now:
Then, the net operating income becomes: