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kodGreya [7K]
3 years ago
9

Ms. Aura is a psychic. The demand for her services is given by Q-2000 10P, where Q is the number of one-hour sessions per year a

nd P is the price of each session. Her marginal revenue is MR = 200-0.2Q Ms. Aura's operation has no fixed costs, but she incurs a cost of 150 per session (going to the client's house).
a. What is Ms. Aura's yearly profit?
b. Suppose Ms. Aura becomes famous after appearing on the Psychic Network. The new demand for her services is Q = 2500-5P. Her new marginal revenue is MR = 500-0.4Q. What is her profit now?
c. Advances in telecommunications and information technology revolutionize the way Ms. Aura does business. She begins to use the Internet to find all relevant information about clients and meets many clients through teleconferencing. The new technology introduces an annual fixed cost of 1,000, but the marginal cost is only 20 per session. What is Ms. Aura's profit? Assume the demand curve is still given by Q-2500 -5P.
d. Summarize the lesson of this problem for the superstar phenomenon.
Business
1 answer:
PIT_PIT [208]3 years ago
7 0

Answer:

a)

P 175

Q = 250

Profit6,250

b)

P 325

Q = 875

Profit 153,125

c)

Q = 1200

P = 260

Profit = 287,000

Explanation:

It maximize profit at MR = MC

MR = 200 - 0.2Q

MC = 150

150 = 200-0.2Q

Q = 50/0.2 = Q = 250

Price:

250 = 2000 - 10P

P = 1750/10 = 175

<u></u>

<u>Profit: revenue - cost</u>

$175 x 250 session - $150 per session = 6,250

<em>At new functions:</em>

150 = 500-0.4Q

Q = 350 / 0.4 = 875

Price:

875 = 2,500 - 5P

P = (2500-875)/5= 325

<u>Profit</u>

(325 - 150) * 875 = 153,125

<u>If cost changes:</u>

cost: 1000 + 20Q

marginal cost: 20

20 = 500 - 0.4Q

Q = 480 / 0.4 = 1,200

Price:

1,200 = 2500 - 5P

P = 1300/5 = 260

<u>Profit</u>

(260 - 20)Q - 1,000 = 287,000

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The statement that is an effective strategy for personal saving is; Save a certain percentage of each paycheck and deposit it directly in a savings account

<h3>What is personal saving?</h3>

Personal saving can be defined as the ability of a person to save their money. Saving this money will enables them to have something to fall back to incase of unforeseen or unexpected circumstance.

The effective strategy for personal saving a person is expected to follow is for the person  to save a  percentage of each of their salary or  paycheck and deposit the money directly into their savings account.

Therefore the statement that is an effective strategy for personal saving is; Save a certain percentage of each paycheck and deposit it directly in a savings account

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Nanjones Company manufactures a line of products distributed nationally through wholesalers. Presented below are planned manufac
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Answer:

Manufacturing overhead volume variance= $1,200 unfavorable

Explanation:

<u>First, we need to calculate the predetermined overhead rate:</u>

<u></u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Fixed Predetermined manufacturing overhead rate= 1,200,000/240,000

Fixed Predetermined manufacturing overhead rate=  $5 per machine hour

<u>Now, to calculate the fixed manufacturing overhead volume variance, we need to use the following formula:</u>

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Manufacturing overhead volume variance = Actual Factory Overhead - Budgeted Allowance Based on Standard Hours

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La Tortilla is the only producer of tortillas in Santa Teresa. The firm produces 10,000 tortillas each day and has the capacity
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Answer: B

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3 years ago
Gilbert, an HR manager at MaxNet Inc., hires 50 employees in five months. He used different sources of recruitment to recruit th
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Answer:

Cost per hire.

Explanation:

Gilbert, an HR manager at MaxNet Inc., hires 50 employees in five months. He used different sources of recruitment to recruit these employees. He wants to know which kind of source delivered the most new hires for the money. To answer that question, Herbert should determine the <u>Cost per hire</u>.

Cost per hire: It is a metric used by company to know the cost incurred in hiring per employee. It include all expense in recruiting employee, like travel cost, equipment cost, administrative expense, advertisement expense etc. Later comparing the cost per hire with the benefit per employee to the organization.

In the given case, If Herbert determine cost per hire of an organization help in knowing which kind of source of recruitment delivered the most new hires for the money.

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3 years ago
The Cutting Department has 6,000 units in process at the end of September that are 100% complete for direct materials. The units
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Answer:

equivalent units of production = 6,000 units

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given data

process at end of September = 6,000 units

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solution

we get here equivalent units of production for the conversion cost that is

equivalent units of production = process at end × direct materials complete .........................1

put here value and we get

equivalent units of production = 6,000 units ×  100%

equivalent units of production = 6,000 units

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