Answer: False
Explanation:
The price elasticity of supply measures the change in quantity supplied when the price changes.
The basic trend is that when price increases, quantity supplied increases as well. The reverse is true.
Price elasticity of supply = %Change in quantity supplied / % change in price
0.5 = -6% / Change in price
0.5 * Change in price = -6%
Change in price = -6% / 0.5
= -12%
The statement above is therefore false because price should have reduced by 12% for quantity supplied to reduce by 6%
Answer:
False
Explanation:
Contribution margin per unit = Sales - variable cost
Contribution margin per unit (Model A) = $432 - $404
Contribution margin per unit (Model A) = $28 per unit
Contribution margin per unit (Model B) = $410 - $304
Contribution margin per unit (Model B) = $106 per unit
False, Contribution margin per unit (Model B) is higher so, motivated to push sales of Model A will be false.
Break-even in units = Fixed cost / Contribution margin per unit
Break-even in units (Model A) = Fixed cost / $28
Break-even in units (Model B) = Fixed cost / $106
Answer:
Explanation:
Experiments were performed for 240 people, 60 people test positive.
Step 1: we calculate the sample proportion; p= 60/240= 0.25.
Step 2: calculate the standard error for the sample, which is the square root of sample proportion,p = p(1-p)/n, n=100
0.25(1-0.25)/100
= 0.04.
Step 3: calculate the test statistics; assuming the hypothesis test percentage is 25%
Then, we say 0.25-1=0.75
-0.75/0.04
= -1.875.
In particular, the sample results are -1.875 standard error.
Probability of Z is less than -1.875.
Look up it value in the Z table
Answer: $1,200,000
Explanation:
The firm should include $1,200,000 as the cost of the Manufacturing facility for a new project in it's analysis.
This is because $1,200,000 is the opportunity cost of not selling the facility. The old costs that were incurred for the land and the facility are to be considered sunk costs as they have already been incurred and the only relevant cost now is what the market will pay for the facility which is $1,200,000.
