HW chapter11
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Benedictine University *
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3301
Subject
Economics
Date
Apr 3, 2024
Type
xlsx
Pages
9
Uploaded by ChefDragonflyPerson749
Modern Electronics
a.
Total Revenue = $ 705.12 Model Parameters for Qty Sold
PRICE
Constant
Price A
Price B
b.
A
$ 18.00 20.00
-0.62
0.30
B
$ 30.00 29.00
0.10
-0.60
NA=20-0.62PA+0.30PB
NB=29+0.10PA-
17.84
12.8
2. Modern Electronics sells two popular models of
wireless headphones, model A and model B. The
sales of these products are not independent of each
other (in economics, we call these substitutable prod-
ucts because if the price of one increases, sales of the
other will increase). The store wishes to establish a
pricing policy to maximize revenue from these prod-
ucts. A study of price and sales data shows the fol-
lowing relationships between the quantity sold (N)
and prices (P) of each model:
NA = 20 - 0.62PA + 0.30PB
NB = 29 + 0.10PA - 0.60PB
a. Construct a mathematical model for the total
revenue.
b. What is the predicted revenue if PA = $18 and
PB = $30?
QTY SOLD
REVENUE
TOTAL REV
17.84 $ 321.12 $ 705.12 12.80 $ 384.00 -0.60PB
MasterTech
Net Sales
$ 1,250,000.00 Cost of Sales
$ 300,000.00 Gross Profit
$ 950,000.00 Sales Expenses (fixed)
$ 90,000.00 Sales Expenses (variable)
$ 100,000.00 Percentage
8%
Total Sales Expenses
$ 190,000.00 Administrative Expenses
$ 50,000.00 Net Operating Profit
$ 710,000.00 Interest Expenses
$ 8,000.00 Net Income Before Taxes
$ 702,000.00 Taxes
$ 351,000.00 Tax Rate
50%
NET INCOME
$ 351,000.00 20. MasterTech is a new software company that develops and markets productivity software for municipal government applications. In developing their income statement, the following formulas are used:
gross profit = net sales - cost of sales
net operating profit = gross profit - administrative expenses - selling expenses
net income before taxes = net operating profit - interest expense
net income = net income before taxes - taxes
Net sales are expected to be $1,250,000. Cost of sales
is estimated to be $300,000. Selling expenses have
a fixed component that is estimated to be $90,000
and a variable component that is estimated to be 8%
of net sales. Administrative expenses are $50,000.
Interest expenses are $8,000. The company is taxed
at a 50% rate. Develop a spreadsheet model to calcu-
late the net income. Design your spreadsheet using
good spreadsheet-engineering principles.
Garage Band
Expected Crowd
2500 people
Average Concessions Expenditure
$ 25.00 per person
Fixed Cost
$ 18,000.00 Ticket Price
$ 20.00 per person
REVENUE FROM TICKETS
$ 50,000.00 CONCESSION SALES
$ 62,500.00 PROFIT PERCENTAGE
80%
BAND PROFIT
$ (17,100.00)
21. A garage band wants to hold a concert. The expected crowd is 2,500. The average expenditure on concessions is $25. Tickets sell for $20 each, and the band’s profit is 80% of the gate and concession sales minus a fixed cost of $18,000. Develop a mathematical model and implement it on a spreadsheet to find the band’s expected profit.
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Related Questions
E2
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I have just visited the netflix website and learned about its pricing. I found the following plans
Basic
Standard
Premium
Monthly cost* (British Pound)
£ 5.99
£ 9.99
£ 13.99
Number of screens you can watch on at the same time
1
2
4
Number of phones or tablets you can have downloads (Links to an external site.) on
1
2
4
Unlimited movies, TV shows and mobile games
✓
✓
✓
Watch on your laptop, TV, phone or tablet
✓
✓
✓
HD available
✓
✓
Ultra HD available
✓
What type of pricing does this represent?
a. Limit pricing.
b. 1st degree price discrimination
c. 2nd degree price discrimination
d. 3rd degree price discrimination
e. None of the above.
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My dear expert bro hand written not allowed please dear.
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Panther Acre Cattle Company - Chapter 7 Lab
A typical farm or ranch problem is determining the optimum or profit-maximizing weight to sell
fed cattle. Assume the feeder cattle are purchased at 600 pounds. The feed required and the
weight gain is shown in the table below. Feed costs 7¢ per pound and feeder cattle prices are as
follows:
Weight
Price per Pound
600-899 lbs
72¢
go to 3rd
900-1099 lbs
decimal
1100 lbs or more
70¢
Point
67¢
Pay attention to the price changes when computing MVP.
Input
Output
Feed
Weight
Selling
Required Gain
Weight
Total Average Marginal Marginal Marginal
Revenue Physical Physical Value
Input
(lbs)
(lbs)
(lbs)
Product
Product
Product
Cost
600
0
0
600
432
XXX
XXX
XXX
XXX
500
50 So
650
468
0.10
0.083
1,100
145 as
745
536.40 0.132
6.158
1,700
235 aol
835
601.20
0.138
0.15
2,300
320 85
920
644
0.139
2,900
400 80
1,000
700
0.138
3,500
465 65
1,065
745, 50 0.133
4,100
525 60
1,125
753.75 0.128
4,700
575 SO
1,175
787.25 0.122
5,300
615 40
1,215
814.05 0.116
5,900
645…
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The global pandemic 2020 has promoted a race to capture the market for introducing effective vaccine and treatments.
a. If PFIZER is the sole vaccine provider given the following information, answer the questions below:
Output
Price/Unit
Total Cost
1
5500
1000
2
5000
1200
3
4500
1500
4
4000
2500
5
3500
4000
6
3000
5700
7
2500
7500
8
2000
9400
9
1500
11400
10
1000
13500
Given the tabular information above find the profit-maximizing output and price also illustrate the same using the two-dimensional labeled diagram. Show the calculation as well.
b. Assume if many firms enter into the business of providing vaccine determine:
How the demand curve of PFIZER would change and how it would now maximize its profit? The kind of market structure now PFIZER…
arrow_forward
The global pandemic 2020 has promoted a race to capture the market for introducing effective vaccine and treatments.
a)- If PFIZER is the sole vaccine provider given the following information, answer the questions below:
Output
Price/Unit
Total Cost
1
5500
1000
2
5000
1200
3
4500
1500
4
4000
2500
5
3500
4000
6
3000
5700
7
2500
7500
8
2000
9400
9
1500
11400
10
1000
13500
Given the tabular information above find the profit-maximizing output and price also illustrate the same using the two-dimensional labeled diagram. Show the calculation as well. (use excel)
b)- Assume if many firms enter into the business of providing vaccine determine:
How the demand curve of PFIZER would change and how it would now maximize its profit? The kind of market structure now PFIZER is forced to operate in? Also, illustrate the same using…
arrow_forward
Only typed solution
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A monopolist is facing the following demand schedule Pa24-30 That is, Q0 implies Pe24, then Qefimplies P21, and Q-2 entals P18, and so one. Fixed costs will be
neglected in this analysis. The marginal cost is constant and equal to 3 for every unit produced. Determina
(a) The quantity produced and the amount of maximum profits
(b) Price and quantity to yield the efficient solution
(c) Redo (a) when we impose a sales tax equal to 4 (per unit sold).
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Note:hand written solution should be avoided.
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Forty thousand potential customersof a cable TV franchise are each willing to pay $11/month for HBO and $11/month for Cinemax. Twenty thousand potential customers are willing to pay $20/month for HBO and only $5/month for Cinemax. Assume costs are zero.
If the franchise sells the two services in a bundle, it should charge1: $312: $253: $224: $205: $18
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Note:-
Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.
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Discuss the supplier evaluation and selection process.
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The global pandemic 2020 has promoted a race to capture the market for introducing effective vaccine and treatments.
If PFIZER is the sole vaccine provider given the following information, answer the questions below:
Output
Price/Unit
Total Cost
1
5500
1000
2
5000
1200
3
4500
1500
4
4000
2500
5
3500
4000
6
3000
5700
7
2500
7500
8
2000
9400
9
1500
11400
10
1000
13500
Given the tabular information above find the profit-maximizing output and price also illustrate the same using the two-dimensional labeled diagram. Show the calculation as well.
Assume if many firms enter into the business of providing vaccine determine: How the demand curve of PFIZER would change and how it would now maximize its profit? The kind of market structure now PFIZER is forced to operate in? Also, illustrate the same using the two-dimensional…
arrow_forward
Note:-
Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.
arrow_forward
Note:-
Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.
arrow_forward
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What quantity of donuts would they be most likely to sell to maximize profits?
What price would they charge per donut?
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Tiles
Workers
AVC
ATC
MC
TC
Revenue
1000
10
8
20
8
22000
9000
2000
19
8
13.6
7.2
50000
18000
3000
27
7
11.2
6.4
93000
27000
4000
34
7
9.8
5.6
148000
36000
5000
41
7
9
5.6
217000
45000
6000
48
6
8.4
5.6
300000
54000
7000
58
7
8.3
8
418000
63000
8000
70
7
8.5
9.6
572000
72000
P = 40 - .0001QM
What is the long run equilibrium price for the type of tiles that Art-tile produces? Why?
How many companies will produce this type of tile in long run equilibrium?
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Related Questions
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- Only typed solutionarrow_forwardA monopolist is facing the following demand schedule Pa24-30 That is, Q0 implies Pe24, then Qefimplies P21, and Q-2 entals P18, and so one. Fixed costs will be neglected in this analysis. The marginal cost is constant and equal to 3 for every unit produced. Determina (a) The quantity produced and the amount of maximum profits (b) Price and quantity to yield the efficient solution (c) Redo (a) when we impose a sales tax equal to 4 (per unit sold).arrow_forwardNote:hand written solution should be avoided.arrow_forward
- Forty thousand potential customersof a cable TV franchise are each willing to pay $11/month for HBO and $11/month for Cinemax. Twenty thousand potential customers are willing to pay $20/month for HBO and only $5/month for Cinemax. Assume costs are zero. If the franchise sells the two services in a bundle, it should charge1: $312: $253: $224: $205: $18arrow_forwardNote:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardComplete the calculations for Total Revenue by determining how many customers will purchase at each of the segment prices. Then, explain what the maximum total revenue would be if you employed pure bundling.arrow_forward
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Recommended textbooks for you
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