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WARRIOR [948]
2 years ago
6

A real estate developer is offering identical houses for sale for $350,000 each, and has 20 willing customers. The developer is

considering lowering the price to $300,000, since at that price there would be an additional 3 customers willing to purchase houses. What would be the developer’s change in revenue from lowering the price in this way?
Business
1 answer:
vagabundo [1.1K]2 years ago
3 0

Answer: $100,000 less

Explanation:

Since we are informed from the question that the real estate developer is offering identical houses for sale for $350,000 each, and has 20 willing customers, this means that current revenue will be:

= $350,000 × 20

= $7,000,000

By lowering the price, the revenue made will be:

= $300,000 × 23

= $6,900,000

The difference is

$7,000,000 - $6,900,000

= $100,000 less.

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Ruiz Co. provides the following sales forecast for the next four months. April May June July Sales (units) 500 580 540 620 The c
nexus9112 [7]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Sales:

April= 500

May= 580

June= 540

July= 620

Finished goods inventory on April 1 is 190 units

Desired ending inventory= 25% next month sales.

To calculate the production for each month, we need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

April:

Sales= 500

Desire ending inventory= (580*0.25)= 145

Beginning inventory= (190)

Total production= 455 units

May:

Sales= 580

Desire ending inventory= (540*0.25)= 135

Beginning inventory= (145)

Total production= 570 units

June:

Sales= 540

Desire ending inventory= (620*0.25)= 155

Beginning inventory= (135)

Total production= 560 units

4 0
2 years ago
A bond has a face value of $1,000, a coupon of 4% paid annually, a maturity of 30 years, and a yield to maturity of 7%. What rat
Lelechka [254]

Answer:

-11.8%

Explanation:

the key to answer this question is to remember that valuation of a bond depends basically of calculating the present value of a series of cash flows, so let´s think about a bond as if you were a lender so you will get interest by the money you lend (coupon) and at the end of n years you will get back the money you lend at the beginnin (principal), so applying math we have the bond value given by:

price=\frac{principal*coupon}{(1+i)^{1} }+ \frac{principal*coupon}{(1+i)^{2} } \frac{principal*coupon}{(1+i)^{3} }+...+\frac{principal+principal*coupon}{(1+i)^{n} }

so in this particular case that one year later there are 29 years to maturity so we have:

price=\frac{1,000*0.04}{(1+0.08)^{1} }+ \frac{1,000*0.04}{(1+0.08)^{2} } \frac{1000*0.04}{(1+0.08)^{3} }+...+\frac{1,000+1,000*0.04}{(1+0.08)^{30} }

price=553.6638

so as we have a higher rate the investment has the next return:

return=\frac{553.66}{627.73} -1

return=-11.8\%

4 0
2 years ago
For each of the following scenarios, identify the number of firms present, the type of product, and the appropriate market model
bulgar [2K]

Answer:

1.

c. Many

d. Differential

c. Monopolistic Competition

2

b. Few

c. Identical

a. Oligopoly

3

a. One

a. Unique

d. Monopoly

Explanation:

A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopoly has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services.

An example of monopolistic competition are restaurants  

A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms.

An example of a monopoly is a utility company

It is only the drug company that is permitted to sell the drug. So, it is the only firm in the industry. Also, it is the only firm that offers experimental AIDS drug, so its product is unique.

An Oligopoly is when there are few large firms operating in an industry. In the cab industry, it is a duopoly that exists. This is a type of oligopoly where there are only two firms in the industry. Consumers do not care about the cabs they enter or the different services offered by the companies, so, the product is identical

6 0
2 years ago
Paul Davis wants to deposit a lump sum of money today for a vacation that he plans to take to Asia after he graduates from Gradu
Yuri [45]

Options:A) Present value of a single amount

B) Future value of a single amount

C) Simple interest

D) Present value of an annuity

E) Future value of an annuity

Answer:B) Future value of a single amount.

Explanation: Future value of a single amount is an accounting concept used to describe how much a single lump sum of money deposited in a bank account would have grown up to after a given period of time. Future value of a single amount can be obtained by

multiplying the principal(P)*the interest rate(I) * time(t) The interest rate is expressed as a decimal.

The FV = P(1 + rt).

Future value of a single amount is usually used in calculating the total accrued amount of fixed deposits accounts,it is a single period investment.

4 0
2 years ago
15 pts-- multiple choice!
kodGreya [7K]
I’m pretty sure the answer is the 3rd one
3 0
1 year ago
Read 2 more answers
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