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Payless Shoe Source sees a 35 per cent increase in sales of its athletic shoes
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- Bell Greenhouses has estimated its monthly demand for potting soil to be the following: N=400+4X where N=monthlydemandforbagsofpottingsoil X=timeperiodsinmonths(March2006=0) Assume this trend factor is expected to remain stable in the foreseeable future. The following table contains the monthly seasonal adjustment factors, which have been estimated using actual sales data from the past five years: Forecast Bell Greenhouses demand for potting soil in March, June, August, and December 2007. If the following table shows the forecasted and actual potting soil sales by Bell Greenhouses for April in five different years, determine the seasonal adjustment factor to be used in making an April 2008 forecast.The economic analysis division of Mapco Enterprises has estimated the demand function for its line of weed trimmers as QD=18,000+0.4N350PM+90Ps where N=numberofnewhomescompletedintheprimarymarketarea PM=priceoftheMapcotrimmerPS=priceofitscompetitorsSurefiretrimmer In 2010, 15,000 new homes are expected to be completed in the primary market area. Mapco plans to charge $50 for its trimmer. The Surefire trimmer is expected to sell for $55. What sales are forecasted for 2010 under these conditions? If its competitor cuts the price of the Surefire trimmer to $50, what effect will this have on Mapcos sales? What effect would a 30 percent reduction in the number of new homes completed have on Mapcos sales (ignore the impact of the price cut of the Surefire trimmer)?Redleaf company's market research department works on the manufacture and marketing of a winter tire for vehicles. Currently the price is 10$, and the demand is 13000 units. When the price is increased to 15$, the company expects the demand to be 8500 units (assume that price is linearly related to demand.). Company is following a make-to-order policy for their production, meaning that they make production as much as ordered from their dealers. The dealers make orders 3 times a year, on January, May and September. The company has 23 dealers, who do not have any capacity restriction on their orders. Yet, the above information is a country-wise research, and shows the aggregate demand (sum of all dealers' orders) for each price. Regardless of the production amount, the company faces with a 2170$ of administrative cost for production, in addition to 1,3 $ cost of raw materials and labour costs per each units produced. If we define price as a function of demand (P(d)) using the…
- Johnny's company provides a on-call service to provide garden maintenance / tidying services in several residential areas at a regular price of $ 400, covering maintenance / trimming and spraying of fertilizers and chemical pests. In an effort to attract new customers, the company offered its customers a $ 80 discount off the regular price. It turned out that this decision was greeted enthusiastically and customers increased to 5,500 units (packages) from 3500 units recorded in the same period last year. Question: a. Compute: Arc price elasticity of demand for service company “ABC”. b. It is assumed that the Arc price elasticity in item a is the best available estimate of the Point price elasticity of demand. If the marginal cost is $ 150 per unit for labor and materials. Compute: Optimal mark-up on price, and Optimal price for Johnny's company services.As a manager of a small business, you are considering to introduce a new product. The production requires a new machine. You figure out that you could buy it for $190,000, but the price could be in between $180,000 and $200,000. Because of the budget limitation you can only pay 60% of the machine price with your own saving. You will borrow the other 40% with an interest rate around 9% per year (but subject to change in between 8.5% and 10%). The demand of this product is predicted to be 15,000 per year and but could be in between 14800 and 15500. The unit price could be in between $2 and $3, and now you believe that $2.5 is a reasonable price right now. The raw material cost is estimated to be $0.9 but could be in between $0.5 and $1.2. The operation cost of the equipment is around $0.2 for one product but could be in between $0.1 and $0.25. The maintenance cost for this equipment is estimated to be $2000 per year but could be in between $1500 and $2300. Suppose you could always invest…The growth rate of the demand for coal in the world is 6 % per year. In what year will the demand be double that of 1997 ? Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
- A university is trying to determine how much it should charge for tickets to basketball games to help offset the expenses of the new arena. The cost to build the arena including labor, materials. e tc. was $92 million. Each year the maintenance cost is expected to increase by 5% as the building gets older. 1l1e maintenance cost for the first year is $150.000. Utilities arc expected to average about $200.000 per year and labor costs $300,000. The average attendance at basketball games over the year is expected to be J00.000 people (or 100.000 tickets sold to events). Assuming the arena has no other source of income besides regular ticket sales (not including student tickets) for basketball games, what should the university charge so that it can recover at least a 6% cost of borrowing on its investment? ll1c university expects the arena to be used for 40 years and 10 have no appreciable salvage value.A local specialty wine store normally sells an average of 129 imported wines from France - per month - over 6 months at an average of $15.86 each. The price elasticity of Demand for these wines is estimated to be -1.64. Recent government regulations, Canadian Dollar value changes and transportation costs have increased costs considerably resulting in higher breakeven prices for all items. In order to capture economic profits the store manager decides to take some action and re-prices the inventory in the store. If the manager increases the price of French Wines by 10% how many bottles of French Wine will they sell? ** HINT - use the basic formula: Elasticity = (Unknown Q / Change in Price) x (Average Price / Average Quantity sold) ** enter your answer for HOW many bottles of French Wine will be sold FOLLOWED by whether the elasticity value is inelastic or elasManning Inc. is the leading manufacturer of garage doors. Demand for residential garage doors depends, of course, on the rate at which new houses are being built, which in turn depends on changes in income per capita. During the past year, Manning sold 10 000 garage doors at an average price of R1 500 per door. In the coming year, disposable income per capita is expected to increase from R32 000 to R34 000. Without any price change, Manning expects current-year sales to rise to 12 000 units. 1. Calculate the arc income elasticity of demand. 2. The company economist estimates that in conjunction with the change in income, if the price of doors is increased by R100, they could sell 11 500 doors. What is the arc price elasticity and what would be the company’s revenue? 3. Should they raise the price even more?
- The demand equation for a product for a product brand of mackerel is given by the equation Qx=50-7Px+0.002I+12Py Where Qx=monthly consumption per family in cartons Px=price per carton of makerel=GHC 2.00 I=median annual family income=GHC20,000 Py=price per carton of competing brand of mackerel=2.5 Required: i.At the stated values of the explanatory variables,calculate the consumption of makerel(cartons). ii.what is the relationship between Good x and Good y? iii.what is the nature of Good x ? iv.Suppose the median annual family income increases to GHC40,000,What will be your new consumptino for Good x? v.Suppose that the price per carton of competing brand increases GHC3.00, What will be your new consumption for Good x?Al Shamil Generator Factory is manufacturing three types of generators in the production line for this month:normal units, automatic units and dual units, the selling price of these products reached $ 500, $ 750 and $ 980, respectively, and these products cost raw materials $ 200, $ 300 and $ 400, respectively. Labor costs $ 100, $ 200, $ 250. And the demand for dual units does not exceed 30 units per month. And the normal demand is at least 90 units per month. And the demand for the automatic is 150 units per month at the most. The employment item for this month was $ 850,000.And the item of raw materials is one million dollars. Find the function and the linear model that achieves the lowest cost ??In 2012–2015, the price of jet and diesel fuel used by air freight companies decreaseddramatically. As the CEO of FedEx, you have been presented with the following proposals to deal with the situation:a. Reduce shipping rates to reflect the expense reduction.b. Increase the number of deliveries offered per day in some markets.c. Make long-term contracts to buy jet fuel and diesel at a fixed price for the nexttwo years and set shipping rates to a level that will cover these costs.Evaluate these alternatives in the context of the decision-making model presented inthe text.