________ is the only element in the marketing mix that produces revenue.

When the price of hamburgers increased from $1.50 to $2.75, the quantity demanded decreased from 375 units sold to 250 units sol

Ghella [55]

Answer:

Inelastic

Explanation:

When the price of hamburgers increased from $1.50 to $2.75, the quantity demanded decreased from 375 units sold to 250 units sold. Using the midpoint method, hamburgers are said to be inelastic

1. Change in price = 2.75-1.5 / (1.5+2.75)/2 = 1.25/2.125 = 0.59

2. Change in quantity demanded = 375-250 / (375+250)/2 = 125/ 312.5 = 0.4

3. Price Elasticity = 0.4/0.59 = 0.68

4. When the value of elasticity is less than 1, it suggests that the demand is insensitive to price and is inelastic

7 0

3 years ago

Mitch is a director and officer of Numero Uno, Inc. Mitch makes a marketing decision that results in a dramatic decrease in prof

Stells [14]

Answer:

As long as Mitch acted in good faith and tried to make the best possible decision regarding all available information, and his decision was something that any other person could have made, his mistake has to be considered a bad or negative business judgement (business judgement rule). He thought that his actions would benefit the corporation, but he was wrong and the corporation lost money. That types of mistakes are considered normal and just that, mistakes that anyone can make.

In regards with the second issue, that Mitch is a shareholder and a director of a firm that will directly compete with Numero Uno, he must inform the board about this and resign to either Numero Uno or One of a Kind.

6 0

3 years ago

Suppose that in Problem 13 a Type 2 service objective of 95 percent is substituted for the stock-out cost of$ 12.80. Find the re

evablogger [386]

Answer:

(Q, R) = (1555, 1400)

shortage imputed = $0.388

Explanation:

Lot size-reorder point system is one of the multi period models. This system is denoted by decision variables (Q, R). This multi period model is implemented when there is uncertain demand in inventory control.

nevertheless, in the simple EOQ model, demand is known and fixed. But when the demand is random, these lot size-reorder point (Q, R) systems allow random demand.

There are two decision variables in a (Q, R) system:

Order quantity, Q and

Reorder point, R

Additional steps are attached as files

8 0

3 years ago

The transactions completed by Franklin Company during January, its first month of operations, are listed below. Assume that Fran

Digiron [165]

Answer:

Issued check for a payment on account CP, subsidiary posting

Issued check for rent CP, No subsidiary posting

Received cash for a sale CP, No subsidiary posting

Issued an invoice to a customer R, subsidiary posting

Purchased a computer for cash CP, subsidiary posting

Received a check from a payment on account CR, subsidiary posting

Purchased equipment on account P, subsidiary posting

Issued check for salary CP, No subsidiary posting

Issued check for purchase of supplies CP, No subsidiary posting

Issued check for advertising expense CP, No subsidiary posting

Paid for the equipment purchased on account CP, subsidiary posting

Recorded the adjustment for supplies used during the month G, Subsidiary posting

Purchased supplies on account P, subsidiary posting

7 0

3 years ago

Morrow City Inc. manufactures small flash drives and is considering raising the price by 75 cents a unit for the coming year. Wi

JulsSmile [24]

Answer:

Operating profit is projected to be $35,100

Explanation:

Morrow City International

Analysis of the Current and Projected demand to determine the Operating Profit

Particulars Current Projected Changes in

Demand Demand Demand

Selling price $8.50 $9.25 0.75

Less: Cost Price $5.80 $5.80 0

Contribution $2.7 $3.45 0.75

Margin

Unit Sold <u>79,000 72,000 -7000</u>

Total $213,300 $248,400 $35,100

Contribution

Note: Total contribution = Unit sold * Contribution margin

3 0

3 years ago