If the cross-price elasticity of demand for Coke and Pepsi is 0.6 and presently 1000 units of Coke are consumed, how many. units of Coke will be consumed if the price of Pepsi increases by 10% ?
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- If 2 liter Bubbly-Cola products cost Speedy $16.20 per case of 24 bottles, what is the amount of the markup (in $) and what is the percent markup on selling price per case?Suppose consumers will purchase q units of a product at a price of 100/q+7 dollars per unit. What is the minimum number of units that must be sold in order that sales revenue be greater than $9000?compute for the following items: g. If breakeven sales in units will increase by 10,000 units, how much will be the increase/decrease in profits? h. If breakeven sales in units will decrease by 4,000 units, how much will be the increase/decrease in profits? i. If the firm wants to increase its current profits by P 60,000. How much sales revenue does it have to make?
- Suppose that the demand for a product is given by Q = 25-0.25P. If the product's price is $128 per unit, how many units will consumers be willing to buy? 0 25A 16-gallon beer keg yields about 200 12-oz servings. What would the beverage cost be ona keg costing $85.00? How about premium beer at $150.00? What would the selling pricesbe with 20 percent and 30 percent cost ratios?A leading beverage company sells its signature soft drink brand in vending machines for $0.89 per12 oz. can. A vending machine has monthly costs of space rental, energy consumption, and capitaldepreciation of $155. A shortage in the world sugar market causes sugar prices to soar. As a result,the Variable Cost of a can of soda increases from $.32 to $0.47. What would the new selling price of the soda need to be in order to achieve a 20% increase in thecontribution per unit after the increase in the price of sugar? $0.97 $1.40 $1.13 $0.90
- XYZ company currently sells 15,000 units a month for $ 50 each , has variable costs of $ 20 per unit , and fored costs of $ 300,000 . The company is considering increasing the price of its units to $ 80 per unit . If the price is changed , how many units will the company need to sell for profit to remain the same as before the price change ? Select one . 10,000 . 7.500 9,000 d . 11.250 e None of the given answers .Sales volumes are expected to be either 20,000 units with 60% probability or they are expected to be 25,000 units. Price will either be $10 (0.3 probability) or else $15. Margins are expected to be 30% or 40% of sales with an even chance of each. What is the expected total cost?The cost per unit of producing a product is 60 + 0.2x dollars, where x represents the number of units produced per week. The equilibrium price determined by a competitive market is $220. a) How many units should the firm produce and sell each week to maximize its profit? b) What is the maximum profit?
- The Warner Company sells its only product for P30 and the variable costs amount to P21 per unit. Fixed cost for each year is P270,000. Questions: 1. Assuming the desired profit for next year (if all costs and selling price remains the same) is placed at P90,000, what is the margin of safety in units? 2. What will be the projected sales in pesos with such desired profits of P90,000? 3. If instead, the desired profit is 5% of sales, how many units must be sold to achieve such?certain spare parts has a selling price of P150 if they would sell 8000 units per month. If for every P1.00 increase in selling price, 80 units less will be sold out per month. If the production cost is P100 per unit, find the price per unit for maximum profit per month. a. P150 b. P250 c. P175 d. P225Suppose that Sea Shell Oil Company (SS) is pumping oil at a field off the coast of Nigeria. At this site, it has an extraction cost of $30 per barrel for the first 5 million barrels it pumps each year and then $60 per barrel for all subsequent barrels that it pumps each year, up to the site's maximum capacity of 90 million barrels per year. Instructions: Enter your answers as a whole number. In part b, round your answers for accounting and economic profit to 1 decimal place. a. Suppose the user cost is $60 per barrel for all barrels and that the current market price for oil is $105 per barrel. How many barrels will SS pump this year? million barrels What is the total accounting profit on the total amount of oil it pumps? $ million What is the total economic profit on those barrels of oil? $ million b. What will happen if the current market price for oil rises to $135 per barrel, while the user cost remains at $60 per barrel? How many barrels will SS pump? million barrels What will be…