Answer:
Increasing the sales price is a bad idea since total revenues will decrease.
Explanation:
The question is incomplete since we are not given the information about other costs, but we are given enough information to calculate the price elasticity of demand:
PED = % change in quantity demanded / % change in price = -12% / 7.5% = -1.6 or |1.6| in absolute terms.
Since the PED is |1.6|, it is price elastic. This means that a change in price will result in a proportionally larger change in quantity demanded. E.g. assume original price is $100 and the original quantity demanded is 100. Total revenue = $10,000. If the price increases to $107.50, the quantity demanded will decrease to 88, resulting in a total revenue of $9,460.
Answer:
Segmentation
Explanation:
Market segmentation is a study that decides whether the company splits its members or populations into smaller categories based on factors such as age, wealth, personality features or actions. These divisions will also be used to tailor goods and ads to specific consumers.
In the case of health insurance providers, they use market segmentation to maintain the difference between individuals and decide about their premium, desire and other benefits.
Answer:
I should avoid prolonged sun exposure
Explanation:
Systemic Lupus Erythematosus (SLE) is a type of illness in which the healthy tissues of the body gets attacked by the immune system by accident. Genetic, environmental and certain medications and hormonal factors trigger the onset of this disease in human beings.
People who have SLE are required to get protective clothing, sunglasses and sunscreens when they are to go under the sun.
So when the client makes comments around staying away from long exposures under the sun, it means the teaching was successful.
Answer:
1,875 units.
Explanation:
Break-even is the point where a company neither generate profit not make loss, or we can say that it the sales at which the operating profit will be zero. It can be calculated for sales volume as-well-as dollar sales. Let's prepare a contribution income statement to calculate the break-even sales in quantity. We know that:
EBIT / Operating Profit = (SP * Q) - (VC * Q) - Fixed Cost
where
SP = Selling Price
Q = Quantity / Units
VC = Variable cost
As it is understood that the operating profit at break-even is zero, simply put it in the above contribution income statements along with other figures given in the question.
⇒ 0 = (20 * Q) - (12 * Q) - 15,000
OR 15,000 / (20 - 12) = Q
⇒ Break-even units = Q = 1,875 units.
