According to the enotes, if a company does not have a current supplier for a part, they must issue a Request for quotation (RFQ) so their potential supplier can provide a detailed quote that might include more than just a per unit price, it may also include delivery date, and payment terms. This quote invites suppliers into a bidding process to bid on specific products or services. However, it is only the first step in a negotiation with a supplier.
Answer:
-4.3; inelastic
Explanation:
Initial price = $6.45
Initial quantity demanded = 600
New price = $6.95
New quantity demanded = 400
Percentage change in Quantity demanded:
= (Change in quantity demanded ÷ Initial quantity demanded) × 100
= [(400 - 600) ÷ 600] × 100
= (-200 ÷ 600) × 100
= 0.3333 × 100
= -33.33%
Percentage change in price:
= (Change in price ÷ Initial price) × 100
= [($6.95 - $6.45) ÷ $6.45] × 100
= ($0.5 ÷ $6.45) × 100
= 0.0775 × 100
= 7.75%
Therefore, the price elasticity of demand is as follows:
= Percentage change in quantity demanded ÷ Percentage change in price
= -33.33 ÷ 7.75
= -4.3
Hence, the price elasticity of demand is inelastic.
Answer:
$75.40
Explanation:
Mark up is a percentage applied on the cost to get the selling price. In other word, the difference between the marked-up amount and the total cost gives the profit of the entity.
To get the target selling price, we would first determine the total cost, then apply the mark up percentage on the cost and add the result to the cost.
Total cost per unit
= $12 + $4 + $9 + $10 + $5 + $12
= $52
Amount of mark up
= 45% * $52
= $23.40
Target selling price = $52 + $23.40
= $75.40
Answer:
Problems: For details refer below
Benefits: For details refer below
Explanation:
Problems associated with Burberry’s licensing arrangement in Japan
1) Licenser creates potential competitors
2) There is a lower control in licensee
Benefits of establishing a relationship with Sanyo Shokai in the country
1) Less costly as compare to Foreign direct investment
2) Responsibility can be shared with the third party
Answer:
31,500
Explanation:
Cost function, C (x) = 2 x + 4500
Revenue function, R (x) = 5 x
Profit = Total revenue - Total cost
= R(x) - C(x)
= 5 x - [2 x + 4500]
= 3 x - 4,500
If company sells 12,000 boxes, then profit will be:
= 3 x - 4,500
= 3(12,000) - 4,500
= 36,000 - 4,500
= 31,500
Therefore, 31,500 is the profit earn by the company by selling 12,000 boxes of cereal.
