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kifflom [539]
3 years ago
11

Two firms, Boomburgs and ABC X-Plode, both sell the same fireworks bundle. If they sell their fireworks at the manufacturer's su

ggested retail price (MSRP), they both sell 100 units a day. Each pays $10 per unit sold to the wholesaler in order to stock its shelves. If either firm sells below MSRP while the other sells at MSRP, the firm with the lower price sells 175 units a day and the firm charging MSRP sells only 50. If both firms sell below MSRP, then each firm sells 125 units a day
If MSRP is $20 and the below MSRP price is $15, calculate the following payoffs:
Profit for ABC X-Plode when both firms charge MSRP:
Profit for ABC X-Plode when it charges MSRP but Boomburgs charges below MSRP: $
Profit for ABC X-Plode when it charges below MSRP but Boomburgs charges MSRP: $
Profit for ABC X-Plode when both firms charge below MSRP: $
Business
1 answer:
Alex_Xolod [135]3 years ago
3 0

1. The profit for ABC X-Plode when both firms charge MSRP is $1,000.

Units ABC X-Plode will sell = 100 units

Profit per unit = $10 ($20 - $10)

Total profit = $1,000 ($10 x 100)

2. The profit for ABC X-Plode when it charges MSRP, but Boomburgs charges below MSRP is $500.

Units ABC X-Plode will sell = 50 units

Profit per unit = $10 ($20 - $10)

Total profit = $500 ($10 x 50)

3. The profit for ABC X-Plode when it charges below MSRP, but Boomburgs charges MSRP is $350.

Units ABC X-Plode will sell = 175 units

Profit per unit = $2 ($12 - $10)

Total profit = $350 ($2 x 175)

4. The profit for ABC X-Plode when both firms charge below MSRP is $250.

Units ABC X-Plode will sell = 125 units

Profit per unit = $2 ($12 - $10)

Total profit = $250 ($2 x 125)

Data and Calculations:

Cost per unit = $10

Quantity sold at MSRP = 100 units

Sales units below MSRP:

One firm sells = 175 units

Second firm sells = 50 units

Sales units for each firm when they sell below MSRP = 125 units

Let:

Price at MSRP = $20

Price Below MSRP = $12

Learn more: brainly.com/question/17141668

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Answer:

$363,000

Explanation:

Calculation for the property’s indicate market value.

First step

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EGI:62,700

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Total Operating Expenses$22,800

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Second step is to find the property’s indicate market value.

Using this formula

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Therefore the property’s indicate market value is

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Appeared as a leader of the Chicago school of financial economics, Friedman burdened the importance of the quantity of cash as a device of government coverage and a determinant of enterprise cycles and inflation. His monetarism principle proposed that cash delivery modifications have immediate and long-term effects.

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