Assignment #1 Economics and Ethical Issues Mrs. Acres Homemade Pies In relationship between supply and demand for Mrs. Acres Homemade Pies, according to the growth of production, consumers are willing to buy Shelly pies at $4.50 each with a production of 8000 pies per month with a profit of $12,000. In order to stay at a $12,000 monthly profit, if Shelly decide to raise her price to $9.50 per pie; the impact will decrease the demand for her pies and her production would only have to be 2000 pies per month. The equilibrium price for Shelly pies is $6.00 per pie with a production of 4000 pies a month.
Date: May 25, 2013 To: Lead Economist Laura From: Subject: GE273 Unit 8 Report for Researcher Molly Market researcher Molly needs to select the best advertising strategy for her client Fuse Soda Company. Fuse’s main rival is Frantic Soda, and Molly understands that the effectiveness of Fuse’s advertising depends on how Frantic reacts. If both companies choose to hire a celebrity spokesperson, neither market share, but both experience a 10% increase in profit because the celebrity promotes stronger sales. If only one company hires celebrity, that company enjoys improve market share (a 15% increase) and higher profit. The company that does not hire a celebrity loses market share and experiences a 20% decrease in profit.
Many consumers where highly interested in owning the technology but was not familiar with the details of how it works. Robert Stephens jumped on the opportunity to capitalize on innovation and the fact that it brings constant change and new problems. 2. What changes in the purchasing patterns of (a) all consumers and (b) women made the acquisition of Geek Squad particularly important for Best Buy? (a) Best Buy had a very high return rate so a full service, house call entity allowed for a decrease of their return rates by 25% - 35%.
However, this may also go against them because without stores there sales will be lower than they could be if they did own shops. The website also helps to increase sales revenue as it is bright and eye-catching that could encourage people to buy their products. The website also helps to increase sales revenue as the delivery service offers free global shipping, which could increase sales exponentially. However, this does have exceptions as it does not deliver to some countries. ASOS also add 1790 new clothing lines a week and already have 50,000.
(10 points) |Score | | | 2. An online store that has been successfully growing on its initial angel investment and revenues wants to invest $5 million to expand the business. The bank is willing to lend the business this money at a 10 percent interest rate over an eight-year term. Calculate the monthly payment, and explain what the business must be able to do with this money in order for this to be a smart business decision. The monthly payment would be $53,084.34.
The numbers matched; she had won the $10,000,000 grand prize. The lottery provided two options for payment of the grand prize. First, the winner could take $1,000,000 immediately, with the remainder payable in $1,000,000 instalments over nine years, starting one year from now. The alternative payment option was an immediate lump sum payment of $7,000,000. Anne believes that she can earn a rate of return of 7 per cent on any money she receives.
In the past two months Nissan and Hyundai have beat Holden for the first time in 65 years. Holden gets the most funding then any other car company by over $180 million because it is the company to sell the most cars and make the most profit even though it doesn’t make as many cars .If Holden doesn’t start selling more cars like they used to then the government will have to cut off some of their funding which then will make it impossible for Holden to make cars in our country which then will make Holden go out of business. The daily telegraph, 2nd April 2013, Subway shop staff underpaid for five years. Four stores in NSW have been fined for underpaying vulnerable young staff for five years. There were 11 staff all aged from 15 to 21, with all the 11 staff they have to come up with $52,344 back pay.
Sure enough, by the last half of 2003, Chemalite, Inc. did indeed go into full operation with sales of $754,500 (Wilson, 2008)). This ability to generate sales early is important because Alexander estimates competition within about five years (Wilson, 2008). Additionally, Chemalite, Inc. has a firm order with the organizing committee of the 2004 Olympic Games for 60,000 chemalites at $1.50 each (Wilson, 2008). This will increase sales by $90,000. Chemalite, Inc.’s machinery used to produce chemalites in general-purpose machinery that might reasonably be expected to last for 10 years (Wilson, 2008).
The ad managed to give supporters a way to donate in addition to attracting nearly 200,000 new donors to the organization. The success of the commercial will benefit more than the A.S.P.C.A., who has now increased its grant program to smaller rescue groups by 900%. In “Ad Featuring Singer Proves Bonanza for the A.S.P.C.A.,” a New York Times article, it is stated that this commercial is by far the A.S.P.C.A.’s most successful fund-raising effort, where this organization’s annual budget of $50 million would not have been thought possible for a single commercial. “Sarah made it possible to do in two minutes what took 30 minutes before,” said Jo Sullivan, the organization’s senior vice president for development and communications, referring to the long-form use of celebrities in the past. “She literally has changed the way we fund-raise.” All of the praise that this ad has received, along with the astonishing numbers it has produced for the organization it represents shows many people that the people responsible for the commercial’s success sure seem to know what they are
Old Spice The power of advertising has never had a reach so far as it has over the last decade. Billions of dollars every year are thrown the ways of writers and directors to create an appeal to audiences everywhere in hopes consumers will purchase their product and stay on board for repeat business. This is especially critical for companies such as Proctor and Gamble to do with older brands such as Old Spice. Having been around for over seventy years, Old Spice was in need of a campaign that would not only appeal to the purchasing audience, but also to revamp the image of such a staple in the hygiene industry. The advertising drive of 2010 featured the hit slogan “The man your man could smell like” (OldSpice, 2010).