Answer: 307.5 tons
Explanation:
To maintain the current Net Income, the company would have to be making a zero profit (breakeven) in the new territory.
Breakeven = Fixed Cost/ Contribution margin
Fixed cost for the new territory = $61,500
Contribution Margin = Sales - Variable cost
Assuming that sales and costs will continue as in 20x1 in the firm’s established territories.
Sales price per unit = 900,000/1,800 tons
= $500 per unit
Variable Cost = 495,000/1,800 tons
= $275 per unit
Variable cost will increase due to sales commission in new territory.
= 275 + 25
= $300 per unit
Contribution Margin for new territory = 500 - 300 = $200
Breakeven point = 61,500/200
= 307.5 tons will need to be sold to maintain net income
Answer:
E=-4.0746
Explanation:
Using the midpoint method, Lauren's income elasticity of demand for new outfits is determined by the change in income multiplied by the average number of outfits, divided by the change in the number of outfits multiplied by the average income:
Her income elasticity of demand for new outfits is -4.0746.
Answer:
$300
Explanation:
The total value gained V is given by sum of the value gained when buying the book (B) added to the value gained when selling the book (S).
The value gained at purchase is given by the difference between the willingness to pay and the actual amount paid:
The value gained when selling the book is given by the difference between the amount received from selling and the value of keeping the book:
The total value gained is:
You have gained $300 in total value.