Revenue at a major smartphone manufacturer was $1.3 billion for the 9 months ending March 2 up 86 percent over revenues for the same period last year. Management attributes the increase in revenues to a 10o percent increase in shipments. Despite a 32 percent drop in the average blended selling price of its line of phones. Given the information, is it surprising that the company's revenue increased when it decreased the average selling price of its phones?
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Revenue at a major smartphone manufacturer was $1.3 billion for the 9 months ending March 2 up 86 percent over revenues for the same period last year. Management attributes the increase in revenues to a 10o percent increase in shipments. Despite a 32 percent drop in the average blended selling price of its line of phones. Given the information, is it surprising that the company's revenue increased when it decreased the average selling price of its phones?
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- As a manager of a small software retailing company, you are concerned with projected profit next year. While profit can be determined as the difference between sales and maintenance cost, or in symbols, P = S - M, where P is profit, S is sales, and M is maintenance cost including technical support. It is argues that when sales goes up so does maintenance cost because the cost of technical support will go up. Further, it is measured that the correlation between S and M is 0.8. Now given the figure that sales next year is expected to be $300 thousand with standard deviation of $4 thousand and maintenance cost is expected to be $150 thousand with standard deviation of $6 thousand, what would be the expected profit and its standard deviation you will include in your report?A company sells three types of products for $20, $15, and $10 per unit. In 1 year, the total revenue for the three products was $2090, which corresponds to the sale of 153 units. The company sold half as many units of the $20 product as units of the $15 product. How many units of each product were sold? How much revenue came from the $20 unit The number of twenty dollar units sold was .The number of fifteen dollar units sold was .The number of ten dollar units sold was .The revenue from the $20 units wasFor tax purposes, “gross income” is all the money a person receives in a given year from any source. But income taxes are levied on “taxable income” rather than gross income. The difference between the two is the result of many exemptions and deductions. To see how they work, suppose you made $50,000 last year in wages, earned $10,000 from investments, and were given $5,000 as a gift by your grandmother. Also assume that you are a single parent with one small child living with you. a. What is your gross income? b. Gifts of up to $14,000 per year from any person are not counted as taxable income. Also, the “personal exemption” allows you to reduce your taxable income by $4,050 for each member of your household. Given these exemptions, what is your taxable income? c. Next, assume you paid $700 in interest on your student loans last year, put $2,000 into a health savings account (HSA), and deposited $4,000 into an individual retirement account (IRA). These expenditures are all tax exempt,…
- It is known that the ABC oil company supplies consumers with 150 tons of products per day. The company produces only two types of products - gasoline and diesel fuel. The limiting transformation ratio of diesel fuel relative to gasoline is 0.5. a) Draw a line of the company's monthly production capacity for gasoline and diesel. b) With the advent of new technologies, production increased by 20%, and the availability of gasoline increased by 30%. Explain how the company's new product line differs from the previous one. c) If we put the gasoline production on the X-axis of the graph, what percentage of the slope capacity of the production line is different from the slope ratio of the previous production line?ABC is an online-to-offline platform that sells e-commerce products to offline customersthrough a network of agents. ABC gives a commission to agents for each sale made. ABC has4 main product categories: electronics, fashion, supermarket, and others. Please refer to theexhibits for data sets pertaining to the questions below. Today is May 16 th . Question: The average basket size per purchase per agent in the fashion category in April is Rp.180.000,-. A third of agents made only 1 purchase that month. A third made 2 purchases that month. The rest made an average of 3.5 purchases that month. What % of agents in Aprilbought fashion? Answer: ________%The price for cigarettes sold by Big Tobacco Co Ltd was6.00 per packet in March 2018. During the month of March, the consumption of cigarettes was 1000 packets. However, the Board of Directors of Big Tobacco Co Ltd decided to increase the price by 25% during the month of April. As a manager you noted that price elasticity of demand was 0.8. As a manager Big Tobacco Co Ltd: Advise your management ofthe strategy that could be adopted by your firm to maintain sales.
- 21. Consider a firm subject to quarter-to-quarter variation in its sales. Suppose that the following equation was estimated using quarterly data for the period 2011–2018 (the time variable goes from 1 to 32). The variables D1, D2, and D3 are, respectively, dummy variables for the first, second, and third quarters (e.g., D1 is equal to 1 in the first quarter and 0 otherwise). Qt =a+bt+c1D1+c2D2+c3D3 The results of the estimation are presented here: a. Calculate the intercept in each of the four quarters. What do these values imply? b. Use this estimated equation to forecast sales in the fourth quarter of 2019.Using the following variables: Company Sales Force Commission of 3% and $500,000 in Salary/Administration, and Independent Sales Rep Commission of 5%. If the company sales force and independent sales rep break-even sales volume was $50 Million, in what situation would the use of company sales force be preferred? If the sales volume was less than $5 million If the sales volume was equal to $50 Million If the sales volume was great than $50 Million If the sales volume was less than $50 MillionAndria Mullins, financial manager of Webster Electronics, has been asked by the firm's CEO, Fred Weygandt, to evaluate the company's inventory control techniques and to lead a discussion of the subject with the senior executives. Andria plans to use as an example one of Webster's "big ticket" items, a customized computer microchip which the firm uses in its laptop computer. Each chip costs Webster P200, and in addition it must pay its supplier a P1,000 fee on each order. Further, the minimum order size is 250 units; Webster's annual usage forecast is 5,000 units; and the annual carrying cost of this item is estimated to be 20 percent of the average inventory unit cost. Andria plans to begin her session with the senior executives by reviewing some basic inventory concepts, after which she will apply the EOQ model to Webster's microchip inventory. Question: What is the formula for the total costs of carrying and ordering inventory? and then use the formula to derive the EOQ model.
- In June, an investor purchased 250 shares of Oracle (an information technology company) stock at $23 per share. In August, she purchased an additional 360 shares at $23 per share. In November, she purchased an additional 510 shares, but the stock increased to $29 per share. What is the weighted mean price per share? (Round your answer to 2 decimal places.)he price for cigarettes sold by Big Tobacco Co Ltd was6.00 per packet in March 2018. During the month of March, the consumption of cigarettes was 1000 packets. However, the Board of Directors of Big Tobacco Co Ltd decided to increase the price by 25% during the month of April. As a manager you noted that price elasticity of demand was 0.8. As a manager Big Tobacco Co Ltd: Advise your management ofthe strategy that could be adopted by your firm to maintain sales. Also, advise your government on recommended interventions in the cigarette market.The price for cigarettes sold by Big Tobacco Co Ltd was 6.00 per packet in March 2018. During the month of March, the consumption of cigarettes was 1000 packets. However, the Board of Directors of Big Tobacco Co Ltd decided to increase the price by 25% during the month of April. As a manager you noted that price elasticity of demand was 0.8. As a manager Big Tobacco Co Ltd: As a manager Big Tobacco Co Ltd store advise your management of the strategy that could be adopted by your firm to maintain sales