ect.mheducation.com/flow/connect.html Saved Help Sav Suppose a corporation has two subsidiaries, one of which is unregulated and sells all of its output to the other, regulated subsidiary. Permitted profits at the regulated subsidiary are equal to 10 percent of total costs. The initial profit picture for the subsidiaries is provided in the table below: Regulated Subsidiary Unregulated Subsidiary $800,000 $ 500,000 $300,000 Total revenue N/A $1,000,000 $ 100,000 Total costs Total profit If the unregulated subsidiary doubles its selling price to the regulated subsidiary, what are the new profits at Instructions: Enter your responses as a whole number. (a) The unregulated subsidiary? profit = $ %3D (b) The regulated subsidiary? profit = $ < Prev 7 of 8 Next > lon & #3 %24 У h. *00

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose a corporation has two subsidiaries, one of which is unregulated and sells all of its output to the other, regulated subsidiary.
Permitted profits at the regulated subsidiary are equal to 10 percent of total costs. The initial profit picture for the subsidiaries is
provided in the table below:
Regulated Subsidiary
Unregulated Subsidiary
$800,000
$ 500,000
$300,000
Total revenue
N/A
$1,000,000
$ 100,000
Total costs
Total profit
If the unregulated subsidiary doubles its selling price to the regulated subsidiary, what are the new profits at
Instructions: Enter your responses as a whole number.
(a) The unregulated subsidiary?
profit = $
%3D
(b) The regulated subsidiary?
profit = $
< Prev
7 of 8
Next >
lon
&
#3
%24
У
h.
*00
Transcribed Image Text:ect.mheducation.com/flow/connect.html Saved Help Sav Suppose a corporation has two subsidiaries, one of which is unregulated and sells all of its output to the other, regulated subsidiary. Permitted profits at the regulated subsidiary are equal to 10 percent of total costs. The initial profit picture for the subsidiaries is provided in the table below: Regulated Subsidiary Unregulated Subsidiary $800,000 $ 500,000 $300,000 Total revenue N/A $1,000,000 $ 100,000 Total costs Total profit If the unregulated subsidiary doubles its selling price to the regulated subsidiary, what are the new profits at Instructions: Enter your responses as a whole number. (a) The unregulated subsidiary? profit = $ %3D (b) The regulated subsidiary? profit = $ < Prev 7 of 8 Next > lon & #3 %24 У h. *00
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