You are the owner of a local Honda dealership. Unlike other dealerships in the area, you take pride in your "No Haggle" sales policy. Last year, your dealership earned record profits of $1.5 million. However, according to the local Chamber of Commerce, your earnings were 10 percent less than either of your competitors. In your market, the price elasticity of demand for midsized Honda automobiles is 4.5. In each of the last five years, your dealership has sold more midsized automobiles than any other Honda dealership in the nation. This entitled your dealership to an additional 30 percent off the manufacturer’s suggested retail price (MSRP) in each year. Taking this into account, your marginal cost of a midsized automobile is $11,000. What price should you charge for a midsized automobile if you expect to maintain your record sales?

Answers

Answer 1

Answer:

$11880

Explanation:

Given that:

In a local Honda Dealership;

Last year, your dealership earned a record profits of $1.5 million

according to the local Chamber of Commerce, your earnings were 10 percent less than either of your competitors.

The Price Elasticity of demand E = - 4.5

Marginal cost of a midsized automobile = $11,000

Let assume that In your market, you compete against two other dealers

From The above given data , the objective is to determine the What price should you charge for a midsized automobile if you expect to maintain your record sales.

So; in order to achieve that ; we consider the scenario of an Oligopoly market by using the markup formula for homogeneous product Cournot Oligopoly which can be represented as:

[tex]P = (\dfrac{n*E}{1+ n*E})*MC[/tex]

[tex]P = (\dfrac{3*(-4.5)}{1+(3*-4.5)})*11000[/tex]

[tex]P = (\dfrac{-13.5}{1+(-13.5)})*11000[/tex]

[tex]P = (\dfrac{-13.5}{-12.5})*11000[/tex]

P = 1.08 × 11000

P = $11880

Hence. the price you should charge for a midsized automobile if you expect to maintain your record sales is $11880


Related Questions

A company purchased $10,000 of merchandise on June 15 with terms of 3/10, n/45. On June 20, it returned $800 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it was entitled to. The cash paid on June 24 equals:

Answers

Answer:

$8,924

Explanation:

the journal entries should be:

June 15, merchandise purchased on account, terms 3/10, n/45

Dr Merchandise inventory 10,000

    Cr Accounts payable 10,000

June 20, defective merchandise returned

Dr Accounts payable 800

    Cr Merchandise inventory 800

June 24, invoice is paid within discount term

Dr Accounts payable 9,200

    Cr Cash 8,924

    Cr Purchase discount 276

The purchasing power of money and the price level vary: Group of answer choices inversely. directly during recessions, but inversely during inflations. directly, but not proportionately. directly and proportionately.

Answers

Answer:

Option "Inversely" is correct.

Explanation:

Option “Inversely” is correct because the increase in price level exhibits inflation and a rise in inflation decreases the purchasing power of money. However, if the price level decreases or inflation decreases, then the purchasing power of money increases. Therefore we can see that increase in price level decreases the purchasing power and a decrease in price level increases the purchasing power. Therefore, there is an inverse relationship.

Suppose Gina and Henry play two rounds of the ultimatum game. In the first round they play for $10; in the second round they play for $1,000. In the first round Gina suggests an 80/20 split ($8 to Gina, $2 to Henry), but Henry quickly rejects the offer as unfair. Assuming Gina is interested in gaining financially from the experience and that she understands behavioral economics, we would expect her to

Answers

Answer:

C. offer a more unequal split ($900/$100) in order to gain more for herself and figuring Henry will accept the split because $100 is better than nothing.

Explanation:

Since in the question it is mentioned that the first round play $10 then for second it would be $1,000. Split ratio is 80 by 20 but the same is rejected by Henry

For understanding the behavioral economics, i.e decision making effects  she should offer more unequal split i.e $900 by $100 so that she gain more as compared to Henry and at the same time Henry accept the $100 thinking that it is better than nothing

Hence, the correct option is c.

In which situation would saving a Word document as a PDF be most useful?
when checking for accessibility issues
O when allowing users to make changes to a document
when users who want to view a document do not have Word
O when sending a document to a person who has no access to browsers

Answers

Answer:

its "when users who want to view a document do not have word"

Explanation:

c

Answer: C

Explanation:

Simkin Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below: Hours Wait time 22.4 Process time 7.3 Inspection time 1.9 Move time 4.5 Queue time 6.6 The manufacturing cycle efficiency (MCE) was closest to:

Answers

Answer: 0.36

Explanation:

Given the following information :

Hours Wait time = 22.4

Process time = 7.3

Inspection time = 1.9

Move time = 4.5

Queue time = 6.6

The Manufacturing Cycle Efficiency (MCE) equals:

The ratio of the process time and the throughput time

The throughput time (Manufacturing cycle) regers to the duration of time required to manufacture a particular product.

It is usually the sum of the process, inspection, move and queue time.

Therefore, throughput time equals ;

(process + inspection + move + queue) time.

(7.3 + 1.9 + 4.5 + 6.6) = 20.3

MCE = PROCESS TIME / THROUGHPUT TIME

MCE = 7.3 / 20.3 = 0.3596 = 0.36

When a firm markets new securities, a preliminary registration statement must be filed with Group of answer choices the Securities and Exchange Commission. the Federal Deposit Insurance Corporation. the exchange on which the security will be listed. all other companies in the same line of business. the Federal Reserve.

Answers

Answer: the Securities and Exchange Commission.

Explanation:

When a firm markets new securities, the firm must file a preliminary registration statement with the Securities and Exchange Commission.

The mission of the Securities and Exchange Commission is to help protect the investors, and also maintain

an orderly, fair, and an efficient markets. Also, the Securities and Exchange Commission facilitate capital formation.

Niko is a member of a five-person community action team to address natural resource issues in his region. He notices that every time the team meets, members do not listen respectfully to each other. According to Hill’s model of team leadership Niko should ______.

Answers

Answer: Step up into a leadership role and use coaching behaviors to address internal relations

Explanation:

Taking responsibility is most timethe only way to resolve a problem in a group or society. One of the ways to go about this is having an undying passion that ensures that until the problem is resolved you won't take a break because the task in most of these sort of scenario could be frustrating and make the one who take up the task give up easily but once there's passion then the individual can rise to the occasion to ensure that things are done rightly through coaching method to meet their goal.

What occurs over time as a result of inflation? Check all that apply. Interest becomes worth less money. The dollar’s value becomes unstable. Interest rates decrease. Interest rates fluctuate in value. The dollar’s future value changes.

Answers

Answer:

the anser is A and E

Explanation:

What occurs over time as a result of inflation are Interest becomes worth less money and the dollar’s future value changes.

What is inflation?

Inflation is the consistent and persistent rise in the prices of goods and services as a result of too much money in circulation.

Causes of inflation are:

Increases in production costs.Increase in prices of goods and services.A surge in demand for products and services

Hence, what occurs over time as a result of inflation are Interest becomes worth less money and the dollar’s future value changes.

Learn more about inflation here: https://brainly.com/question/1082634

#SPJ2

The selling of Busch Entertainment, a theme park unit that owns SeaWorld, by Belgium-based AB InBev after the acquisition of Anheuser-Busch by InBev to ensure a focus on AB InBev’s core business, is an example of Multiple Choice a principal–agent problem. taper integration. restructuring. a diversification premium. franchising.

Answers

Answer:

The right answer is "Restructuring ".

Explanation:

Restructuring seems to be a process during which a firm keeps changing its organization's strategy as well as its path. Most restructuring procedures demonstrate laying off workers. The enterprise can fire workers, remove divisions, or shutter almost all of its stores nationwide.

So that the given instance would be an example of "Restructuring".

Angina, Inc., has 5 million shares outstanding. The firm is considering issuing an additional 1 million shares. After selling these shares at their $20 per share offering price and netting 95% of the sale proceeds, the firm is obligated by an earlier agreement to sell an additional 250,000 shares at 90% of the offering price. In total, how much cash will the firm net from these stock sales?

Answers

Answer:

$23,500,000

Explanation:

Angina Inc. has an outstanding of 5 million shares

The company is considering issuing an additional 1 million shares at $20 per share offering price and 95% of the proceeds gotten from the sale

An earlier agreement obligated the firm to sell an additional 250,000 shares at 90% of the offering price

The first step is to calculate the net proceeds for the shares sold

Net proceeds= Number of shares sold×price per share×percentage of sales proceed

The net proceeds for 1,000,000 shares can be calculated as follows

= 1,000,000×95/100×$20

= 1,000,000×0.95×$20

= $19,000,000

The net proceeds for 250,000 shares can be calculated as follows

= 250,000×90/100×$20

= 250,000×0.9×$20

= $4,500,000

Therefore, the total proceeds can be calculated as follows

= $19,000,000+$4,500,000

= $23,500,000

Hence the firm will realize a total cash of $23,500,000 from the stock sale.

If average daily remittances are $6 million, and "extended disbursement float" adds two days to the disbursement schedule, how much should the firm be willing to pay for a cash management system if the firm earns 7% on excess funds

Answers

Answer:

$840,000

Explanation:

Calculation of how much should the firm be willing to pay for a cash management system

Using this formula

Annual return from cash management system = Average daily remittances × 2 days disbursement schedule× Percentage of excess funds

Let plug in the formula

Annual return from cash management system$6,000,000 × 2 days × 7%

Annual return from cash management system= $840,000

Therefore the firm be willing to pay the amount of $840,000 for thebcash management system if the firm earns 7% on excess funds.

Which is an advantage of the sole proprietorship and partnership business models?

Answers

Explanation:

Advantage is profit easy to earn money etc

Review the following conversation: Marcy: Dana, can I talk to you for a couple of minutes? We’ve been roommates for two years and I think I have a time management problem. I just don’t get enough done in a day. What do you think? Dana: Tell me more. How did you decide that you have a problem? Marcy: I never get everything done on my to-do list. The more I get done, the more I end up adding to the list. Dana: What would solving the problem look like to you? Marcy: Well, I’d get everything done on my list. Dana: Is that

Answers

Answer:

Coaching.

Explanation:

Coaching is demonstrated as the method of training in which a more experienced or proficient person provides suggestions and guidance to an individual(employee) with an aim to build and develop his/her skills, competence, performance, and career. The managers are required to be efficient coaches as it helps them in promoting better engagement in the team and enhancing productivity as well as customer support of the organization. It helps the managers to develop the skills in employees and boost their self-confidence which makes them able to overcome challenges effectively, improve their performance, and reach desired goals.

A sole proprietorship: Multiple Choice involves significant legal costs during the formation process. has its profits taxed as personal income. provides limited financial liability for its owner. can generally raise significant capital from non-owner sources. has an unlimited life.

Answers

Answer:

has its profits taxed as personal income.

Explanation:

Some of the advantages of sole proprietorships are that they do not require expensive legal costs in order to establish them, but their two main disadvantages are that it is more difficult to raise additional funds and the owner (sole proprietor) has unlimited liability against any obligation resulting from the business. They also have a limited life, since they cease to exist if the owner dies.

Jamir has decided that he needs a new car. He has found the model and color he wants for a purchase price of $25,838.

To buy the car, he must put 10 percent down, and his loan is for five years with an interest rate of 4.4 percent. His payments are $432.46.

To lease the car, he can sign a three-year contract with payments of $290. He needs to provide $1,500 up front to pay initial fees and his first month's payment. His annual mileage cannot exceed 15,000 miles.

Jamir’s new job is 25 miles away from his home. What is the most important thing he needs to consider before agrees to a lease?

Answers

Answer:

he will do more than 15,000 miles a year

Explanation:

Answer:

b) He will have to come up with a bigger down payment. c) His monthly payments will be higher.

Explanation:

can't see my options but got a question like this on edge.

How to get popular on YTube

Answers

Alright, so you can either do the clickbait way, which means you shove the latest trend in the title and do what’s trending, or you can do what your heart desires. Remember, you won’t get popular over night. It can take 1-4 years to be even remotely popular. There’s lots of competition on the app so good luck
Clickbait and advertising yourself on all social media

a. The factor distribution of income describes the relationship between
1. factor ownership and total income.
2. technology and total income.
3. capital and total income.
b. The factor market and factor prices play an essential part in the
1. allocation of income.
2. allocation of resources.
3. distribution of goods and services.
4. allocation of finance.

Answers

Answer:

a. The factor distribution of income describes the relationship between

3. capital and total income

b. The factor market and factor prices

1. allocation of income.

Explanation:

In economics, income distribution is defined as how a nation's total GDP is distributed amongst its population. On the other-hand, The factor distribution of income is the division of total income among labor, land, and capital. Factor prices, which are set in factor markets, helps in the  determination of the factor distribution of income.

Forrester Company is considering buying new equipment that would increase monthly fixed costs from $120,000 to $150,000 and would decrease the current variable costs of $70 by $10 per unit. The selling price of $100 is not expected to change. Forrester's current break-even sales are $400,000 and current break-even units are 4,000. If Forrester purchases this new equipment, the revised break-even point in dollars would be:Multiple Choice$375,000.$325,000.$500,000.$400,000.$300,000.

Answers

Answer:

$375,000

Explanation:

Selling price = $100

New variable cost per unit = ($70 - $10)

= $60

New fixed cost = $150,000

Therefore, Break even point in dollars

= Fixed costs / Contribution margin ratio,

Where Contribution margin ratio=

{(Selling price per unit - Total variable cost per unit / Selling price per unit)}

= {($100 - $60 / $100)}

= 0.4

= 40%

Break even point in dollars would be;

$150,000 / 0.4

= $375,000

As Bart Brownlee approached retirement, he decided the time had come to invest some of his nest egg in a conservative fund. He chose the Franklin Utilities Fund. If he invests $30,000 and the fund charges a load of 4.25 percent when shares are purchased, what is the amount of commission (load) Bart must pay?

Answers

Answer:

$1,275

Explanation:

The computation of the amount of commission for paying is shown below:

= Invested amount × fund charges a load percentage

= $30,000 × 4.25%

= $1,275

By multiplying the invested amount with the fund charges a load percentage we can easily calculate the amount of commission and the same is to be considered

Carly's Classic Limo Service sold one of its automobiles for $19,000. The car was an antique car that Carly used to promote the business. The car had an original cost of $13,000 with $11,000 in accumulated depreciation. The recognized gain on the sale was $

Answers

Answer:

$17,000

Explanation:

The reason is that the recognized gain is the difference between the Carrying Value and the Sale Value of the asset.

Here

Carrying value of asset = $13,000 Cost    -  $11,000 Accumulated Depreciation

Carrying value of asset = $2,000

Sale Value is $19,000

Recognized Gain = $19,000 Sale Value     -    Carrying Value $2,000

Recognized Gain = $17,000

What is partnership.
List the advantages and disadvantages of partnership.​

Answers

Answer:

Disadvantages of a partnership include that: the liability of the partners for the debts of the business is unlimited. each partner is 'jointly and severally' liable for the partnership's debts; that is, each partner is liable for their share of the partnership debts as well as being liable for all the debts.

Explanation:

Explanation:

PARTNER SHIP:

WHEN TWO OR MORE PEOPLE ARE IN BUSINESS TOGETHER IT IS CALLED A PARTNERSHIP. A PARTNER ACTING ALONE IN THE NAME OF THE BUSINESS BINDS THE OTHER PARTNERS.

ADVANTAGES OF PARTNERSHIP:

◇ TWO HEADS OR MORE ARE BETTER THAN ONE.

◇ YOUR BUSINESS IS EASY TO ESTABLISH AND START- UP COSTS ARE LOW.

◇ MORE CAPITAL IS AVAILABLE FOR THE BUSINESS.

◇ YOU'LL HAVE GREATER BORROWING CAPACITY.

◇ HIGH- CALIBRE EMPLOYEES CAN BE MADE PARTNERS.

◇ PARTNERS BUSINESS AFFAIRS ARE PRIVATE.

◇ IT'S EASY TO CHANGE YOUR LEGAL STRUCTURE LATER IF CIRCUMSTANCES CHANGE.

DISADVANTAGES OF PARTNERSHIP:

◇ THE LIABILITY OF THE PARTNERS FOR THE DEBTS OF THE BUSINESS IS UNLIMITED.

◇ THERE IS A RISK OF DISAGREEMENTS AND FRICTION AMONG PARTNERS AND MANAGEMENT.

◇ EACH PARTNER IS AN AGENT OF THE PARTNERSHIP AND IS LIABLE FOR ACTIONS BY OTHER PARTNERS.

◇ IF PARTNERS JOIN OR LEAVE, YOU WILL PROBABLY HAVE TO VALUE ALL THE PARTNERSHIP ASSETS AND THIS CAN BE COSTLY.

HOPE IT HELP....❣❣❣

If a small business fails to repay a bank loan, what will the lending institution do to recover its loss?

Answers

Answer:

The bank sues the company for not paying the loan

Explanation:

When the small business fails to repay the loan to the bank, the bank sues the company in the credit bureau. The court then may declare the company bankrupt or the assets of the business can be liquidated to repay the creditor's loan. The defaults and unable to repay the loan affects the person's credit score severely, if the business is sole proprietorship. If the business is declared bankrupt then all of the business assets are liquidated and the money is paid to the lenders.

Harriet forges a check from her employer’s checkbook. Her sister Ivy deposits the check at the bank. What is the usual term for Ivy’s actions? a. False impersonation. b. Criminal misuse of a financial instrument. c. Uttering. d. Unauthorized abatement.

Answers

Answer:

c. Uttering.

Explanation:

In this case, Harriet committed uttering of a forged financial document. Uttering is a crime and it refers to using, trading or offering a forged legal document. In this case, the forged legal document was a check, but uttering can also include forging a high school or college diploma and pretending to have graduated from the institution, and any other forging of legal documents.

Harry deposits $2400 in an account that pays 7% simple interest and $3500 in a second account that has a higher interest rate but is more risky. What interest rate must he get on the second account in order to earn at least $800 in interest for one year?

Answers

Answer:

18.0571%

Explanation:

Simple interest = principal x time x year

simple interest on the first investment = $2400  x 0,07 x 1 = $168

in order to earn at least $800 , he must earn $800 - $168 = $632 in the second investment

$632 = $3500 x r x 1

r = $632 / $3500 = 0,180571 = 18.0571%

The owner of an interior lot has received notice that the city intends to place a sidewalk across his property. The lot measures 100' x 500'. The cost of the sidewalk is $40 per linear foot and the city will pick up 50% of the cost, with each homeowner picking up the difference. How much will this homeowner be charged in a special assessment tax to cover his cost of the sidewalk?

Answers

Answer:

The amount that he will be charged in a special assessment tax to cover his cost of the sidewalk Is $2000  

Explanation:

We are told that the property is an interior lot, so we'll only consider one of the width of his plot, since the sidewalk can only pass through the front or the back of his property.

The property measures 100' x 500' , that is 100 ft width by 500 ft length

The cost of the sidewalk is $40 per linear ft

The city will pick up 50% of the cost.

For a width of the lot, the cost per linear length will be

100 x $40 = $4000

The city covers 50% of this cost, leaving 50% of the cost to the homeowner.

The homeowner's cost will be 50% of $4000

= 0.5 x $4000 = $2000  

The amount that he will be charged in a special assessment tax to cover his cost of the sidewalk Is $2000  

Sparky's incorrectly included inventory that was on consignment in its ending inventory count. Consequently, the ending inventory was overstated on the balance sheet. Explain how this error will affect this year's income statement. (Check all that apply.)

Answers

Answer:

Net Income will be Overvalued.

Explanation:

If closing inventory is overvalued, the cost of sales figure will be undervalued, consequently the gross profit and the net income for the year will  be overvalued.

Florida state saving bond can be converted to $1000 at maturity date of five year from purchase if the state bond are to be competitive with the USA saving bonds which pay 1% interest compounded annually at what price will the state bonds sell

Answers

Answer:

The price will the state bonds sell would be $951.46

Explanation:

In order to calculate the price will the state bonds sell we would have to make the following calculation:

price will the state bonds sell=price to be converted/(1+interest rate)∧n

According to given data we have the following:

price to be converted=can be converted to $1,000 at maturity date of five year from purchase

interest rate=1%

n=5

Therefore, price will the state bonds sell=$1,000/(1+1%)^5

price will the state bonds sell=$951.46

The price will the state bonds sell would be $951.46

For retirement, identifying which of the following most correlates with generating income for retirement? A. Tangible assets B. Debt C. Insurance D. Cash flow

Answers

Answer:

it should be A

Explanation:

it generating income for retirement

When labor productivity increases over time, generally A) it is due to increases in the number of workers B) So do average wages C) It results in higher For prices for goods and services .

Answers

Answer:

The answer is B.

Explanation:

Labour productivity is given as output per unit of labour input.

When output increases in an industry, ceteris paribus, the industry may have to lower prices in order to sell that increase. When output increases(labor productivity increases), workers will demand for higher wages. This is so because the efficiency of the workers has improved and there is need for compensation.

If I was gonna be a business person what would I be and why?

Answers

Answer:

peter druker and write about him and the stuff he did write that he is the person u look up for

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