ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- Product Life Cycle Dollars 0 Introduction Growth Maturity Time Consumers have stopped buying the product. Price has been affected because competition has entered. Sales have peaked. The company is starting to innovate. Decline As you look at the Product Life Cycle shown above, you notice that the space between sales and profits starts to widen in the Growth phase. Why? (Choose all responses that apply.) Sales Profitsarrow_forwardYou are the CEO of a company. You have an opportunity to undertake the following project: pay $1,000 today and receive $1,300 a year from now. If the interest rate is 30%, the net gain of the project (cost minus benefit) is: A) $440. B) $200. C) $166. D) $0.arrow_forwardThe Rosebud Motel is a must-stay for any road-tripper or weary traveler. The motel fils each of its 24 rooms for 200 nights each during the year. Annual fixed costs total $160,000. The variable cost of one night's stay is $100. The motel owners expect a 50% return on the company's $500,000 of assets each year. The Rosebud Motel is currently the only place to stay for 50 miles. What should Rosebud's cost-plus price be if sales volume and costs are expected to stay consistent? OA. $133.33 OB. $185.42 OC. $2,150.00 OD. $152.08 OE. The Rosebud Motel would not set its price as it is a price-taker in this market.arrow_forward
- ЕОС 13.5B Morgan took $400 000 out of their savings account to start an ice cream stand. The savings account paid 5% interest. In the first year, Morgan sold 12,000 batches of ice cream at a price of $3 each, and incurred costs of $12,000 which involved outlays of money. What was Morgan's economic profit in the first year?arrow_forwardBags/Participants Fixed Cost Variable Cost Total Cost 0 $1,700 $ - $1,700 100 $1,700 $500 $2,200 200 $1,700 $1,200 $2,900 300 $1,700 $2,700 $4,400 400 $1,700 $5,200 $6,900 500 $1,700 $9,000 $10,700 600 $1,700 $15,000 $16,700 700 $1,700 $23,800 $25,500 800 $1,700 $36,800 $38,500 900 $1,700 $55,800 $57,500 1,000 $1,700 $83,000 $84,700 Given the above information on cost, if you charge $15 per entry, what is the breakeven quantity of bags that you should order? At what quantity of bags will profits be maximized? A Use the profit maximizing rule, MR ≥ MC, buy 300 bags. B Use the profit maximizing rule, MR ≥ MC, buy 200 bags. C Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 300. D Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 200.arrow_forwardQuality solution for better ratings pleasearrow_forward
- When comparing a gross lease to a NNN lease, some of the key differences being lower rent for the tenant at the risk of paying any additional cost out of pocket such as repairs. This would normally be the responsibility of the landlord as with a gross lease. Although the tenant has more control, this also means more risk for them and work of upkeep. This makes a NNN more beneficial for a landlord, and may explain why it’s more common on commercial properties. Residential tenants tend to give gross leases in case any expenses arise the situation will be covered without extra cost to the tenant. This is a discussion from one of my classmates I'm supposed to respond to their post it's only a discussionarrow_forwardAdapt the presentation to meet the unique needs of the customer. Individual client problems priorities are unique which means if we do our job well the solutions will match the customers needs. True Falsearrow_forward
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