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emmasim [6.3K]
3 years ago
5

The deal your assistant signs calls for the sale of a minimum of260 chairs and up to 450 chairs. The price will be $91 per chair

ifonly 260 chairs are bought, but will be discounted by $0.25 perchair (on the entire order) for every chair ordered in addition tothe minimum. Answer the questions below, rounding your answers tothe nearest whole dollar.
a) What is the largest revenue you can make under this deal?
revenue = $
b) What is the least revenue you can make under this deal?
revenue = $_________
Business
1 answer:
sattari [20]3 years ago
6 0

Answer:

a. Revenue = $23,660

b. Revenue = $40,837.50

Explanation:

a) Data and Calculations:

Minimum number of chairs to be sold under the deal = 260

Price at minimum number of chairs (260) = $91

Maximum number of chairs to be sold under the deal = 450

Discount offered for quantity above 260 = $0.25 per chair on the entire order

Price at maximum number (or just above 260 chairs) = $90.75 ($91 - $0.25)

Minimum revenue to be made under this deal = $23,660 (260 * $91)

Maximum revenue to be made under this deal = $40,837.50 (450 * $90.75)

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Explanation:

Present value is the sum of discounted cash flows.

Present value can be calculated using a financial calculator:

Cash flow in year 0 = $20,000

Cash flow in year 1 = $35,000

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I hope my answer helps you

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If a sole proprietorship fails which of the owner's assets may be lost
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They can lose their personal assets.
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A positive value for PVGO suggests that the firm has: A) A positive return on equity. B) A positive plowback ratio. C) Investmen
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At Sam’s Swimming Pool Cleaning, Sam charges each of his 85 customers $25 per week for 52 weeks of service every year. Since poo
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Answer:

$ 62,500

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7 0
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yuradex [85]

Answer:

d. Cash equivalent.

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