QUESTION 5: Kai decides to keep his price the same and add color, increasing variable costs by $0.40 per issue. What is the percent increase in unit volume (copies per issue) required to maintain $500 profits and cover the increased fixed and variable
Scenario: Richman Investments provides high-end smartphones to several employees. The value of each smartphone is $500, and approximately 1,000 employees have these company-owned devices. In the past year, employees have lost or damaged 75 smartphones .
Due to the industry’s heavy reliance on word-of-mouth, it is assumed that the brochures will result in low conversion. However, it would help to increase Elite’s awareness within its desired market. If 20% of initial customers sign up one friend by the end of the first year, the water bottles and t-shirts would have an ROI of 2.07%. This would result in an additional $5,760 in sales.
b. For problems #1 and #2 there were no profitable alternatives to understocking, whereas in problem #3, Ralph has a profitable alternative for understocking since 40% of customers will buy the Private. The different critical ratios from each problem produce a different optimal stocking quantity.
In our second assumption, instead of using the cost of goods per cases in 1986, we try to use the percentage it counts in the total expenses which is 50.4% and to find the sales needed to break-even. The detail of the calculation is shown in the answer for questions d. The result is that 95,635, a little bit higher than the estimated sales of 90,000.
Total Sales Dollars (for covering each incremental dollar of advertising) = $200,000 / $150,000 = $1.33
Have you ever had a shirt that at you wanted to wear to school? Well a kid named Ben Brewer did and he was punished with suspension for wearing his favorite rock t-shirt. The rule is that you can't wear shirts with bands on them. Ben clearly didn’t break any rule that the school made because the rule should not have been made in the first place. Band t-shirts are not disruptive at all.
5. Since the distribution D1 no longer holds, there exist a new distribution where everyone has 0.25 less than original and Wilt Chamberlain has 250,000 more than original
Norris had decided for some time that he wanted to purchase a motel. After looking at several different areas, he settled on Port Stephens in New South Wales as offering both the potential for a business and the lifestyle he was seeking. He rang a number of real estate agents, inquiring whether they had any motels listed for sale. He finally found a motel and general business listed with an estate agent called Evatt. Evatt told Norris that once he got going in this business it would be a gold mine. Norris sought an accountant’s advice and then proceeded to buy the business. Within six months of buying the motel and general business Norris was broke because there were neither the tourist numbers nor the local population to