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Brums [2.3K]
2 years ago
8

​lilly's, a furniture​ retailer, sells​ low-end furniture and accent pieces that are targeted toward​ lower-income consumer grou

ps.​ lilly's most likely segments the consumer market based on​ ________ variables.
Business
1 answer:
ElenaW [278]2 years ago
6 0
<span>Study online flashcards and notes for Marketing including According to the 5 step model of the marketing process, the first step in ... Lilly's, a furniture retailer, sells low-end furniture and accent pieces that are targeted toward lower-income consumer groups. Lilly's most likely segments the consumer market based on.demographic The evaluation of marketing concept from mere selling concept to consumer- .... Many individuals or group involvement is seen in decision making process. ... together with the consumer self- image, values and needs, the more likely the .... There are four prominent models of consumer behaviour based on involvement.</span>
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Show that if the contribution to profit for trains is between $1.50 and $3, the current basis remains optimal. If the contributi
Dmitriy789 [7]

Answer:

210

Explanation:

Let us consider that x is the number of soldiers produced each week and y is number of trains produced each week.

Also, weekly revenues and costs can be expressed in terms of the decision variables x and y.

Then,

Hence the profit which we want to maximize is given by,

Now the constraints are given as,

Finishing Constraint:

Each week, no more than 100 hours of finishing time may be used.

Carpentry Constraint:

Each week, no more than 80 hours of carpentry time may be used.

Demand Constraint:

Because of limited demand, at most 40 soldiers should be produced each week.

Combining the sign restrictions and with the objective function  and constraints,and yield the following optimization model:

Such that,

First convert the given inequalities into equalities:

From equation (1):

If x=0 in equation (1) then (0,100)

If y=0 in equation (1) then (50,0)

From equation (2):

If x=0 in equation (2) then (0,80)

If y=0 in equation (2) then (80,0)

From equation (3):

Equation (3) is the line passing through the point x=40.

Therefore, the given LPP has a feasible solution first image

The optimum solution for the given LPP is obtained as follows in the second image

The optimal solution to this problem is,

And the optimum values are  .

Let c be the contribution to profit by each train. We need to find the values of c for which the current, basis remain optimal. Currently c is 2, and each iso-profit line has the form

3x +  2y = constant

y = 3x/2 +constant/ 2

And so, each iso-profit line has a slope of  .

From the graph we can see that if a change in c causes the isoprofit lines to be flatter than the carpentry constraint, then the optimal solution will change from the current optimal solution to a new optimal solution, If the profit for each train is c, the slope of each isoprofit line will be.

-3/c

Because the slope of the carpentry constraint is –1, the isoprofit lines will be flatter than the carpentry constraint.

If,

-3/c<-1

c >3

and the current basis will no longer be optimal. The new optimal solution will be point A of the graph.

If the is oprofit lines are steeper than the finishing constraint, then the optimal solution will change from point B to point C. The slope of the finishing constraint is –2.

If,

-3/c < -2 or

C < 1.5

Then the current basis is no longer optimal and point C,(40,20), will be optimal. Hence when the contribution to the profit for trains is between $1.50 and $3, the current basis remains optimal.

Again, consider the contribution to the profit for trains is $2.50, then the decision variables remain the same since the contribution to the profit for trains is between $1.50 and $3. And the optimal solution is given by,

z = 3× (20) + 2.5 × (60)

= 60 + 150

= 210

5 0
2 years ago
Smith buys and sells equity securities. On December 15, 2021, Smith purchased $522,000 of Jones shares and elected the fair valu
Fofino [41]

Answer:

Smith will report an investment income of $56,000 in its income statement.

Explanation:

Based on the information given we were told that Smith made a purchased of the amount of $522,000 of Jones shares in which as of December 31, 2021, the Jones shares also had a fair value of the amount of $578,000 this means that Smith will report an investment income of $56,000 ($578,000-$522,000) in its income statement.

4 0
2 years ago
Four roommates are planning to spend the weekend in their dorm room watching old movies, and they are debating how many to watch
gulaghasi [49]

Answer:

See the five answers below.

Explanation:

The roommates are debating how many movies they should watch.

This is the constraint; given that they have to pay to rent each movie.

<u>PART (A)</u>

Since their dormitory room is the 'cinema', meaning that it's just going to be 4 of them and a private good that they'll pay for; then the showing of a movie is not a public good!

Public goods are those general utilities usually provided by governments, for their citizens; e.g. public defense, clean drinking water, good roads, etcetera.

<u>PART (B)</u>

Given the 'willingness to pay' constraint, we need to find the optimal number of movies they can watch. It costs $8 to rent a movie, no matter how interesting it is or how much satisfaction the viewers derive from it. So the cost of the 1st film = the cost of the 2nd film = the cost of the 3rd film = the cost of the 4th film = the cost of the 5th film.

To get the total amount they're willing to pay for all 5 movies, sum up!

(10+9+6+3) + (9+7+4+2) + (8+5+2+1) + (7+3+0+0) + (6+1+0+0)

KEY: This arrangement should remind you of the law of diminishing marginal utility. The more movies they watch in one sitting or over a weekend, the less satisfaction they derive from the intangible commodity. Hence, the less they are willing to pay for more of the commodity.

So the sum is 28 + 22 + 16 + 10 + 7  =  83

Now to get the number of movies they should rent if they wish to maximize their total spending, divide the total willingness to pay by the cost for a movie:

83/8 = 10.375

Rounding up to the nearest whole number or in reality, that's 10 movies.

<u>PART (C)</u>

Suppose the roommates choose to rent this optimal number of movies - which is higher than the intended number of movies - and then split the cost equally, what will each roommate pay?

Here, we will use the approximated value 10.

10movies  x  $8  =  $80

Splitting the cost equally, divide by 4

$80 ÷ 4  = $20

This figure is just in obedience to the question's requirements which says the bill must be shared equally. In actual fact, some of the four roommates don't have a purchasing power or willingness that is up to $20! That's Felix and Larry.

<u>PART (D)</u>

Complete the given table by inputing each roommate's total willingness to pay for the 5 movies and the surplus each person obtains from watching the movies. Remember to assume that Van is the same person as Raphael.

Also, total cost for 5 movies is 8 x 5 = $40

Dividing this by 4, you have $10 per roommate. So a surplus would be the excess of each roommate's TWTP over $10.

                      <u>  TWTP($)          CS($)</u>

VAN                    40                   30

CARLOS             25                    15

FELIX                  12                      2

LARRY                 6                      -4

<u>PART (E)</u>

If the cost is divided up based on the benefits (remember how the price for movie was static despite the movie and satisfaction received by each viewer? That's about to change) or satisfaction each roommate receives, the practical problem with this 'solution' is that each roommate has an incentive to reduce the value of the movies to him; and this can only be measured by the efficient number (the number that rates the value each roommate derives from each movie). In this case, the incentive is the window given to each roommate to 'not tell the truth' about their level of satisfaction from watching each movie, because that would mean a higher bill for the individual.

KUDOS!

4 0
1 year ago
Lily is planning to sell her home, which she bought seven years ago for a total of $168,000.the property value has increased by
abruzzese [7]
The answer is D. $251,700
7 0
1 year ago
Read 2 more answers
You’ve decided the industry is mature. That means it has reached a point of market saturation. As a new player, you’ll need to t
OlgaM077 [116]

Answer:

intensity of rivalry

Explanation:

You answer this question based on Porter's Five forces model. This model is used to analyze how stiff competition is in a given industry. It includes, threat of new entrants, bargaining power of suppliers, bargaining power of buyers, intensity of rivalry and threat of substitute goods. In this case, the leaders must address the intensity of rivalry because the market is already saturated with those three big companies. Therefore,  your company must evaluate level of homogeneity of products that already exists, consumers' switching costs and brand loyalty to come up with a competitive strategy.

6 0
1 year ago
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