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motikmotik
2 years ago
7

The price for a fidget spinner is $5 with the quantity demanded at 7,000 a day. As time goes on the price for a fidget spinner d

rops to $3 and the quantity demanded increases to 12,500 a day. What is the price elasticity of demand for fidget spinners using the midpoint method? Group of answer choices
Business
1 answer:
KonstantinChe [14]2 years ago
7 0

Answer:

Price elasticity of demand using midpoint method is -1.1282

Explanation:

Formula of price elasticity of demand using midpoint method is as follows:

Price elasticity of demand = (Change in Demand / Average of demands) / (Change in Price / Average of Prices)

Price elasticity of demand = ( 12,500 - 7,000 ) / [( 12500 + 7000 ) /2 ] / ( 3 - 5 )/[( 3 + 5 ) /2]

Price elasticity of demand = (5500 / 9750) / ( -2 / 4)

Price elasticity of demand = 0.5641 / -0.5

Price elasticity of demand = -1.1282

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If fixed costs are $850,000 and the unit contribution margin is $50, profit is zero when 15,000 units are sold.
Firlakuza [10]
B false
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2 years ago
The Square Box is considering two independent projects, both of which have an initial cost of $18,000. The cash inflows of Proje
Liula [17]

Answer:

The Square Box should accept Project B only

Explanation:

Square Box should decide the project whose Net present value (NPV) of future cash inflow is higher than the initial cost of investment

NPV of cash inflow from Project A = 3,000/(1+12%)+7,000/(1+12%)^2+10,000/(1+12%)^3 = $15,377, lower then initial cost of $18,000 → deny Project A

NPV of cash inflow from Project B = 3,000/(1+12%)+7,000/(1+12%)^2+15,000/(1+12%)^3 = $18,936, higher then initial cost of $18,000 → accept Project B

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2 years ago
MaryJane’s Bakery manufactures and sells a variety of baked goods. The selling price per dozen of chocolate glazed dunuts is $8.
Roman55 [17]

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$4.20

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4 0
2 years ago
Even if an objective is impossible to attain, it still meets the criteria of a good objective because it can motivate worker.
Viktor [21]

False, even if an objective is impossible to attain , it still meets the criteria of good objective because it motivate workers.

Explanation:

Goal and objectives are required for running a company properly. If the workers are motivated they will be able to increase the production as well as work hard to improve their performance. It will increase the output

Proper motivation increases the efficiency of the workers , it also increases the efficiency of the company, it also reduces the cost and also increase the overall productivity. Workers are also motivated if they are given reward for their work. The leader should keep in mind that he should motivate for that can be achieved if the goal are not not achieved the workers will be dishearten.

8 0
2 years ago
The WorldLight Company produces two light fixtures (products 1 and 2) that require both metal frame parts and electrical compone
Deffense [45]

Answer:

Explanation:

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So, this can be written as the inequations

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= x + 2y

Now , we find a feasible area whose extremeties will give the maximum profit for, the  graph is ( see attached file )

So on the graph, we can get the other extremeties of the shaded regional so which will not give maximum profit ,

Thus , the maximum possible profit is

p = ($1 * 125) + ($2 * 25)

= $175

4 0
2 years ago
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