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Yuri [45]
3 years ago
13

When XYZ firm entered the market for good A two years​ back, it kept the price of its product low to attract customers away from

its leading competitor. The firm has now established itself and has a market share of 20 percent. The management of XYZ is planning to increase price of A from the current​ $6 per unit to​ $7 per unit. Timothy​ Walters, the marketing​ head, however, feels this is not a good idea because it will reduce quantity demanded drastically from the current​ 1,200 units to 900 units. His colleague and the head of the sales​ department, Jake​ Mayers, feels that the quantity demanded would only decline by 250 units. According to​ Jake, the firm can afford to increase the price because even after the price increase they would still have significant market share
Business
1 answer:
Sonja [21]3 years ago
4 0

Answer:

B) The demand for good A is elastic.

Explanation:

Both Timothy and Jake believe that the demand is elastic, Timothy believes the PED = 1.75, while Jake believes the PED = 1.46. The difference is that Timothy believes the demand is more elastic.

Option A is not correct because Timothy believes total revenue will fall while Jake believes it will increase.

Option C is not correct because both believe that their market share will decrease.  

Option D is not correct because both Timothy and Jake are arguing about higher prices, not lower prices.

Option E is not correct because an increase inn the price of a good does not shift the demand curve, it moves the equilibrium point within the given demand and supply curves.

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den301095 [7]

Operating ratio-measures the portion of operating revenue that goes to operating expenses, only revenue and expenses generated from passenger and freight transportation are considered

(operating expenses/operating revenue)*100

load factor-measures the percentage of a plane's capacity that is utilized,

(number of passengers/total number of seats)*100

All pilots should be interested in weight and balance control. The two changeable factors that can alter an aircraft's total weight and CG location are loading and fuel management, both of which are under the control of the pilot.

The owner or operator of the aircraft should guarantee that the pilots have access to current information and that the proper entries are made in the records when repairs or modifications are completed. The CG is altered as a result of equipment removal or addition.

To learn more about Airlines load here

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6 0
1 year ago
The income statement of Pratt Inc. reports net sales of $3,749.9 million for the current year. The balance sheet reports account
zaharov [31]

Answer:

the Days sales outstanding is 49 days

Explanation:

The computation of the days sales outstanding is shown below:

Days sales outstanding is

= Average accounts receivable ÷ Credit sales × 365  days

= (($520.2 million + $486.6 million) ÷ 2) ÷ $3,749.9 million × 365  days

= 49 Days

hence, the Days sales outstanding is 49 days

We simply applied the above formula so that the correct value could come

And, the same is to be considered

6 0
3 years ago
James purchased five bonds of face value of $1,000 that paid 5 percent annual interest rate. the total annual interest income of
oksian1 [2.3K]
250 dollars without compound intrest
3 0
3 years ago
Suppose that a stock gave a realized return of 20% over a two-year time period and a 10%
KengaRu [80]

Answer:

Option (D) 16.57%

Explanation:

Data provided in the question:

Realized gain

r₁ = 20%

r₂ = 20%

r₃ = 10%

Now,

Geometric average = [(1+r_1)\times(1+r_2)\times...\times(1+r_n)]^{\frac{1}{n}} - 1

here,

n = 3

therefore,

Geometric average = [(1+0.20)\times(1+0.20)\times(1+0.10)]^{\frac{1}{3}} - 1

or

Geometric average = [1.584]^{\frac{1}{3}} - 1

or

Geometric average = 1.1657 - 1

or

Geometric average = 0.1657

= 0.1657 × 100%

= 16.57%

7 0
3 years ago
The following information relates to Halloran Co.'s accounts receivable for 2021: Accounts receivable balance, 1/1/2021 $ 858,00
cluponka [151]

Answer:

$1,224,000

Explanation:

Given that,

Accounts receivable balance, 1/1/2021 = $ 858,000

Credit sales for 2021 = $3,450,000

Accounts receivable written off during 2021 = $54,000

Collections from customers during 2021 = $3,030,000

Allowance for uncollectible accounts balance, 12/31/2021 = 215,000

Halloran report for accounts receivable, before allowances, at December 31, 2021:

= Beginning accounts receivables + Credit sales for 2021 - Accounts receivable written off during 2021 - Collections from customers during 2021

= $858,000 + $3,450,000 - $54,000 - $3,030,000

= $1,224,000

4 0
3 years ago
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