Answer:
Decrease by $1
Explanation:
Given:
Old data:
Q0 = 2,000 units
P0 = $20
Total revenue before change = 2,000 x $20 = $40,000
After change in Price.
Q1 = 2,100 units
P1 = $19
Total revenue After change = 2,100 x $19 = $39,900
Computation of Marginal Revenue:
Marginal Revenue = (P1 - P0) / (Q1 - Q0)
= ($39,900 - $40,000) / (2,100 - 2,000)
= -100 / 100
= $(-1)
Marginal revenue will decrease by $1
Answer: Megabus being a late mover in the US, has allowed the company to learn from past mistakes by companies such as Greyhound, who filed for bankruptcy in the mid 90's and who lost most of it's business due to poorly maintained terminals, high prices for fares and unsafe conditions. Mega bus's advantages include fares as lows as 1 dollar, free wi-fi, stylish buses and power outlets. They Can offer these low fares since the company eliminated purchase Windows for tickets, selling tickets online only and by eliminating expensive terminal operations by dropping off and picking up riders at sidewalk stops like public bus operators. There are few disadvantages besides the fact that rising gas prices affect travel and low fare prices affect revenue if quantity is not met .
Advantages - 1. Affordable 2. Pretty scenery 3.You get what you paid for
Disadvantages-1. Uncomfortable 2. It’s Either Freezing or Sweltering 3. Odd People
2. Yes it has own Overwhelming resources and capabilities 3. Train
Explanation:
Answer:
$650
Explanation:
Guaranteed Residual Value = FV = $1,000
Interest rate = r = 9% = 0.09
Number of years = n = 5 years
Using Following formula we can calculate today's worth of the engine.
Residual value after 5 years = Today's value x ( 1 + rate of interest )^number of years
FV = PV x ( 1 + r )^n
$1,000 = PV x ( 1 + 0.09 )^5
PV = $1,000 / ( 1.09 )^5
PV = $649.93
PV = $650 (rounded off to the nearest whole number)
Answer:
B) 15 decision variables, 8 supply/demand constraints.
Explanation:
To determine the number of decision variables all we have to do is multiply the number of groves by the number of processing plants = 3 x 5 = 15. There are 15 possible ways that oranges can go from one specific grove to one specific processing plant.
To determine the supply/demand constraints we add the number of groves (supply) and processing plants (demand) = 3 +5 = 8
Answer:
$305,000 increased
Explanation:
As the total unit cost is given i.e $23
And, the customer has offered to buy 61,000 units at $22 each
In the case of special order, the effect on operating profits is
= Difference of cost × number of units to be offered for buying
= $5 × 61,000 units
= $305,000 increased
The difference is
= Buying price offered - direct material per unit - direct labor per unit - variable overhead per unit
= $22 - $8 - $5 -$4
= $5
The selling cost is not included. Hence, ignored it
