Laxada Marketing launched a new sales promotional program, or every seals of proof of purchase of their product, customers receive a double-layer reversible umbrella costing P200 eacn. This umbrella may separately be sold for P300 each. The company estimates that 75% of the seals of proof of purchase reaching the consumer market will be redeemed. Product sales with seals of proof of purchase - 20,000 units for a total of P12,000,000 Premiums distributed to customers - 500 umbrellas How much of the total transaction price is allocated to the premium?

Laxada Marketing launched a new sales promotional program, or every seals of proof of purchase of their product, customers receive a double-layer reversible umbrella costing P200 eacn. This umbrella may separately be sold for P300 each. The company estimates that 75% of the seals of proof of purchase reaching the consumer market will be redeemed. Product sales with seals of proof of purchase - 20,000 units for a total of P12,000,000 Premiums distributed to customers - 500 umbrellas How much of the total transaction price is allocated to the premium?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 7E

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At the Motorola plant in Mesa, Arizona, it is desired to determine whether one-inch-thick insulation or two-inch-thick insulation should be used to reduce heat loss from a long section of steam pipe. The heat loss from this pipe without any insulation would cost Php200 per linear foot per year. The one-inch insulation will eliminate 88% of the heat loss and will cost Php60 per foot. Two-inch insulation will eliminate 92% of the heat loss and will cost Php110 per foot. The steam pipe is 1,000 feet in length and will last for10 years. MARR = 6% per year. Which insulation thickness should be recommended?
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The expansion plan of a business firm requires the purchase of a parcel of land on which to build a structure, which they will need 5 years hence. The current costs are land, P1,000,000; building P3,500,000. Since these are not needed immediately, the firm plans to defer the purchase of the land and the construction of the building until they are needed. If the value of the land and the cost of the building are expected to appreciate at the rates of 20% and 8% per annum, respectively, what will be the total cost of the land and structure 5 years hence?