Answer:
The correct answer is A.
Explanation:
Giving the following information:
Schrute Farm Sales buys portable generators for $470 and sells them for $720 He pays a sales commission of 5% of sales revenue to his sales staff. Mr. Schrute pays $7,000 a month rent for his store and also pays $1,700 a month to his staff in addition to the commissions. Mr. Schrute sold 500 generators in June.
Revenue= 720*500= $360,000
Cost of goods sold= 470*500= 235,000 (-)
Sales commision= 0.05*360,000= 18,000 (-)
Contribution Margin= 107,000
Rent= 7,000 (-)
Fixed sales comission= 1,700 (-)
Operating income= $98,300
Answer:
-0.10
Explanation:
To calculate this, we us the formula for calculating elasticity of demand (E) relevant for the demand equation as follow:
E = (P / Q) * (dQ / dP) .............................. (1)
Where,
Q = 30
P = 90
E = -0.3
dQ / dP = b = ?
We then substitute all the value into equation (1) and have:
-0.3 = (90 / 30) * b
-0.3 = 3 * b
b = -0.3 /3
b = -0.10
Therefore, appropriate value for the price coefficient (b) in a linear demand function Q is -0.10.
NB:
Although this not part of the question, but note that how the linear demand function will look can be obtained by first solving for the constant term (a) as follows:
Q = a - 0.10P
Substituting for Q and P, we can solve for a as follows:
30 = a – (0.1 * 90)
30 = a – 9
a = 30 + 9 = 39
Therefore, the linear demand equation can be stated as follows:
Q = 39 – 0.1P
So sis yes yes yes trees yes yeah tax yeah yeah yeah yeah yeah trash trash
Answer: B. redeploying and recombining existing core competencies to compete in future
Explanation: Motor craft inc core competence is in fuel efficient engine but realizing that there is a new market opportunity to diversify, it then "redeployed and recombined existing core competencies to compete in future". By producing car engines in large scale and selling it to other automobile companies.
Answer:
Net income will decrease by $400,000
Explanation:
Currently this business unit is generating a net loss of $150,000:
total revenue - variable expenses - fixed costs = $700,000 - $300,000 - $550,000 = -$150,000
if the unit is eliminated, then the revenue and variable expenses will be gone, but the fixed costs will be allocated to other business units. So instead of losing $150,000, the company will lose $550,000. The company's net income will decrease by $550,000 - $150,000 = $400,000
