<u>Answer: </u>Production concept
<u>Explanation:</u>
Production concept is based on concentrating on the efficiency of the production and manufacturing. The basis of production concept is to make the goods available to the consumer at affordable prices. By producing in mass quantities the companies believed they can reduce the cost of production.
Also that supply can be increased when the cost of production is lower. Economies of scale can be achieved by the company when they reduce cost of production they can increase their profit earning capacity.
Answer:
B. The market demand is perfectly elastic at the market price. °
Explanation:
As we know that in the case of perfect competitive market there is a big number of sellers and buyers who sells same kind of product, there is no entry and exit barriers also the firm is a price taker
In addition to this, the market price and output would be measured by the supply and demand force. The profit maximizing output for every firm would considered the market price with the prescribed output and at the time when firm is shutdown so the market price would below the average variable cost
So the option b is incorrect
Nielsen PRIZM uses Market Segmentation.
Explanation:
Market division is the way toward isolating a market of potential clients into gatherings, or sections, in view of various qualities. The fragments made are made out of buyers who will react also to showcasing procedures and who share qualities, for example, comparable interests, needs, or areas.
Market division makes it simpler for advertisers to customize their promoting efforts.
By organizing their organization's objective market into divided gatherings, as opposed to focusing on every potential client exclusively, advertisers can be increasingly effective with their time, cash, and different assets than if they were focusing on buyers on an individual level.
Gathering comparable shoppers enables advertisers to target explicit spectators in a financially savvy way.
Market division additionally lessens the danger of a fruitless or ineffectual showcasing effort.
At the point when advertisers separate a market dependent on key attributes and customize their procedures dependent on that data, there is an a lot higher possibility of progress than if they somehow managed to make a conventional battle and attempt to actualize it over all sections.
Answer:
1) Colt Carriage Company
Income Statement
For the month ended April 202x
Revenues:
- Adults passengers $186,300
- Children $81,000
- Total revenues $267,300
Variable costs:
- City fees $26,730
- Souvenirs $7,425
- Brokerage fees $11,340
- Carriage drivers $52,650
- Total variable costs <u>$98,145</u>
Contribution margin $169,155
Period costs:
- Depreciation $2,900
- Horse leases $48,000
- Marketing expenses $7,350
- Payroll expenses $7,600
- Total period costs <u>$65,850</u>
Operating profit $103,305
2) If the total amount of passengers increase by 10%, then all variable costs will increase by 10% except brokerage fees which would increase only by 6%. Revenues should also increase by 10%. Period costs should not change.
Contribution margin should increase by 10.29% and operating profit would increase by 16.81%.
Explanation:
since the information is not complete, I looked it up:
Revenues
13,500 passengers:
8,100 x $23 = $186,300
5,400 x $15 = $81,000
total $267,300
variable costs:
fees paid to the city 10% of total revenue
souvenirs $0.55 per passenger
brokerage fees 60% of total tickets x $1.40
carriage drivers $3.90 per passenger
fixed costs:
depreciation $2,900
horse leases $48,000
marketing expenses $7,350
payroll expenses $7,600
