ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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You are the buyer for The Shoe Outlet. You are looking for a line of men’s shoes to retail for $79.95. If the markup on men's shoes is 45% based on selling price , what is the corresponding percent markup based on cost? (round answer to nearest tenth of a percent)
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- You own a company that produces helmets. You are currently selling 100 helmets per week. Your average total cost of producing these helmets is $100. Recall ATC=TC/Q. A customer comes to your store and says he needs a helmet and will pay you $95 for it. Thus you need to produce the 101st helmet if you make the sale. Your average total cost if you produce 101 helmets is $99.95. Do you sell the helmet to the customer for $95?arrow_forwardProduct 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_forwardthis table is trickyarrow_forward
- You are a small retailer. You make profit by buying from a large producer and reselling at your store. The price you're selling at does not change with how many units you sell. The producer recently raised their price to 150 a unit, so you're considering vertical integration and making your own products. If the fixed cost of vertical integrating is 1,200 and you can produce with a cost of 70 per unit, how many units do you have to sell for the vertical integration to yield the same profit as before? Enter your answer herearrow_forwardA particular style of sunglasses costs the retaller $90 per pair. At what price should the retaller mark them so he can sell them at a 10% discount off the original price and still make 40% profit on his cost?arrow_forwardWhen 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_forward
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