The demand for a product/service goes up so the price of the service goes up. The opposite to anticipation inflation is unanticipated inflation which is when the price of goods/products unexpectedly rise. Ms.Wang originally spent £1900 a month on drawings and then she cut it back to £1000 a month. This saved her a total of £900 a month meaning she saved £10,800 in a year. She cut her
A) 1x B) 20x C) –9x D) 9x 5) The price of a sweater went up 20% since last year. If last years price was x, what is this years price in term x? A) 1.2x B) 3.6x C) 0.5x D) 0.2x 6) If rs+4 which of the following CANNOT be a value for s? A) -5 B) -1 C) -4 D) 0 7) Julie has cats, fish, and frogs for pets. The number of frogs she has is [pic]more than the number of cats, and the number of fish
In order to achieve her marketing objective, she has to allocate communication budget in such a way that it would result in 10% increase in profit over 2007 estimates. Marketing Mix Strategies: RBS had high distribution penetration. Maximum distribution was of 1 lb box. There was a 150 person sales team to manage retail and wholesale accounts. Sales-force was incentivized by a quota system with quarterly volume quotas.
One suggestion is that the company reposition its water as a premium product, justifying a higher price. If successful, the company believes that it could charge 20% more for its water than it does now. 1. What is the maximum sales loss (in % and units) that Healthy Spring could tolerate before a 20% price increase would fail to make a positive contribution to its profitability? The maximum sales loss would be 25% before they can tolerate before a 20% price increase, which amount to 1,500 bottles per day instead of 2,000.
The weaker economy resulted in sponsorship cutbacks for professional riders. The company expects the market will improve moderately in the upcoming year and has indicated it will not take any pricing actions to increase sales. However, the 3.2% increase forecasted for units sold and revenue in year 9 over year 8 is a concern since the company is not planning on any specific actions to spur sales or product awareness in the weakened economy. The next concern is the amount of components and frame materials budgeted in the raw materials budget. Each bicycle requires 42
| | Instructor Explanation: | a. When the price of a substitute good falls, the demand for the other good falls. Price of Diet Cola Brand Y falls -- demand for Diet Cola Brand X falls. b. This tests your ability to distinguish between a change in demand and a change in quantity demanded.
Contribution margin = $190 - $ 70 = $120 per passenger 90 X .60 = 54 filled seats Break-even point in passengers = $ 3,150,000/$120 = 26,250 passengers 26,250/54 = 486 train cars d) (Refer to original data.) Fuel cost is a significant variable cost to any railway. If crude oil increases by $ 20 per barrel, it is estimated that variable cost per passenger will rise to $ 90. What will be the new break-even point in passengers and in number of passenger train cars? New contribution margin = $70 Break-even point in passengers = fixed costs/contribution margin Passengers = 45,000 Train cars = 715 e) Springfield Express has experienced an increase in variable cost per passenger to $ 85 and an increase in total fixed cost to $ 3,600,000.
These funds were to pay off $114,000 of the $170,000 loan from Lester to this estate, which were then distributed to Lisa and your two nephews. The balance of $56,000 which was to he paid to you was never distributed to you. Those funds and the additional $100,000 that you personally borrowed were used to pay down the accounts payable balance. The individual that looked you the $100,000 per their note requires you to pay down the loan by $20,000 every six months starting 7/1/10. When we prepared your personal financial statements for the bank we discussed that your loans against your home are too high and that you should start reducing these down as
Analysis for the recommended solution 2.1. Demand: money cares a lot (income & price) The reason why the sales have declined in the past 5 year may come from 3 factors: Recession, Environmental Concern, and Price Competition. The MJ Brenner is overreacting to the environment threat. As research shows “In 2011,sales of green household cleaning supplies represented just 3% of all FDM household cleaning supply sales”, such a small market share itself is far from enough to account for the 7.5% decline in total sales in CleanSpritz. Economic recession has some impact on the drop in sales.
Furthermore the brand has the current advertising campaign emphasizing on different ways to use baking soda can be assumed to not be very effective since advertising recollection is low. Option 1: Cut down on trade promotions lowering the amount of baking soda in stores and increasing the price per unit. Pros: Getting rid of some trade promotions such as free cases with purchases over a certain amount will help reduce overhead. Fewer products in the market would also hopefully increase demand. Cons: Retails could by less baking soda and could probably decide to sell baking soda at a higher price, which could deter some existing costumers from buying again.