Managerial Economics & Business Strategy (Mcgraw-hill Series Economics)
9th Edition
ISBN: 9781259290619
Author: Michael Baye, Jeff Prince
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter CS, Problem 6CBE
To determine
To explain: The impact on subscription, revenue and profit.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Question 7 (Breakeven Analysis)
You decided to sell Only coffee using Nespresso machine during Ramadan
The Nespresso Machine Cost is 3,000 SAR
Every cup of coffee required one brown sugar that cost 0.5 SAR, one disposable cup costs 1.5 SAR, and one coffee capsule costs 3 SAR
If you sell one coffee for 10 SAR
Option 1
Option 2
No Employee
Sales quantity = 1500 per month
Selling Price 10 SAR per coffee
One more Employee and his salary is 4000
Expected sales quantity = 2500 per month
Selling Price 10 SAR per coffee
What is the breakeven quantity?
What is the breakeven quantity?
What is the profit?
What is the profit?
Which option is better?
Problem 10-01 (Algorithmic)
Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual demand rate of 3,600 cases. A case of the soft drink costs R&B $2. Ordering costs are $22 per order and holding costs
are 26% of the value of the inventory. R&B has 250 working days per year, and the lead time is 5 days. Identify the following aspects of the inventory policy:
a. Economic order quantity. If required, round your answer to two decimal places.
Q*
551.9 X
b. Reorder point. If required, round your answer to the nearest whole number.
r =
72
c. Cycle time. If required, round your answer to two decimal places.
T =
38.3
X days
d. Total annual cost. If required, round your answer to two decimal places.
TC = $
Topic A Problem: While on vacation, you go to a miniature golf course on a weekday and notice no other
customers there while you golf. Why do you think a miniature golf course would stay open during the week
when it seems like the revenue from so few customers could not possibly cover the costs of running the golf
course? What is an example of another business that stays open even when it's slow, and their revenue does
not seem like it could cover their costs?
Chapter CS Solutions
Managerial Economics & Business Strategy (Mcgraw-hill Series Economics)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- COVID-19 and the Economy The rapid spread of the coronavirus across the world has rendered a large proportion of the workforce unable to commute to work, to reduce the spread of the virus. This has resulted in both employers and employees seeking alternative work arrangements. Many companies have shifted to remote work, with video calls and instant messaging replacing meetings. In other words, most if not all workers have experienced work from home. Hence, working remotely has become a priority for most governments and companies in the time the pandemic. In a well-organized four-paragraph effect essay, discuss two effects COVID-19 has had employees, employers, or the economy as a result of working from home.Choose ONLY ONE prompt and develop it into an essay with an Introduction, TWO Body Paragraphs, and a Conelusion. Pls i need helparrow_forwardCASE STUDY Jeff Spud from ‘Spud’s Farm’ is your client and is a medium sized potato farmer on the north-west coast of Tasmania. You are asked to give him financial and business advice on how his business can survive the problems he is facing from powerful buyers of his produce and with competition from other local, interstate and overseas producers. His previous contracts for his potato crop have been from McCain, a global company. Previously he was able to form a collective with other farmers in the region to negotiate the price to be paid by McCain per tonne. He understands there is some legal issue on negotiating price as a collective and requests advice on this. Jeff has explained that he can produce 50 tonnes of potatoes per hectare and the contract price per tonne he has been given is $248. He has potentially 45 hectares of farm he can use for potatoes. He has provided you with the estimated fixed and variable costs for each farmed hectare. Below are some snippets from recent…arrow_forward[5th_itemB] *problem situation in the photo below* Required: What would you recommend (strategy/course of action to assist workers who would lose their jobs owing to the minimum wage increase) as a result of your findings?arrow_forward
- Question 20 of 20 Reggie owns and operates a cheese shop in the village of Somerset. Although Reggie has a degree in mechanical engineering and could easily go to work for his brother's company earning $76000 a year, his true passion is for cheese. Consider the list of Reggie's revenue and expenses from last year. Please use the information provided to answer the questions. Revenue from 2010 $90000 Rent $18000 Equipment $6000 Supplies $3000 What is Reggie's accounting profit? What is Reggie's economic profit? -$13000 $63000 $3000 O -$13000 -$63000 $3000 $63000 -$63000arrow_forwardOperations Strategy Question: Which of the following is not a component of the production process? a) Inputs b) Outputs c) Operations strategy d) Transformation processarrow_forwardMemo 1 To:Pricing Manager, Tri-State Region From:Regional Vice President, Tri-State Region Re:Revenue from EPIX We recently added the EPIX Movie Channels as part of a new tier of programming for our digital video subscribers. The EPIX channels are sold as an add-on package for $9.75 per month, but we would like to potentially increase our revenue from our subscriber base. Currently we have about 15,059 subscribers, generating monthly revenue of $146,823.Some have suggested we should cut price, as customers tend to be fairly price sensitive for add-on packages. However, in this case, if we lower price for our new subscribers, we really need to cut it to all of our existing subscribers as well. I have some concerns that lowering price will be counter-productive.The marketing department calculated some subscription levels at various price points in this region, and I need you to perform the analysis.…arrow_forward
- COVID-19 Lockdown Price FreezeYou have been appointed as the Marketing Manager of Makro, Massmart CEO Mitchell Slape hasassigned you tasks and requires you to write a report that will be presented at the next Massmart Boardmeeting. You are encouraged to conduct further research on the company.Background issues1Massmart . is a South African firm that owns local brands such as Game, Makro, Builder's Warehouse,Cambridge Food and Cash & Carry stores.2Massmart announces a price freeze in all their brands for the duration of the 21-day nationwidelockdown. This will involve. suspending price adjustments that were scheduled, as part of the normalcourse of business, before the lockdown was announced. Fresh produce, which is procured daily fromfresh produce markets around the country, is the only category that is not included in this announcement.3Commenting on the decision, Massmart CEO Mitchell Slape said: “This is an unprecedented time forSouth Africa and the. world. As we all come to…arrow_forwardAssignment Content Suppose a firm uses sugar in a product that you purchase. The firm vertically integrates by purchasing sugar farms that produce the sugar organically and in a way that makes it also sustainable for the environment. How would that influence your demand for that product? What other purpose than profitability might cause the firm to make this decision to vertically integrate in this way? Your journal entry must be at least 200 words in length. No references or citations are necessary.arrow_forwardResearch topic: How leadership can positively influence organizational performance.arrow_forward
- I need help with this question. note: this is just 1 questionarrow_forwardSpecific subject: Microeconomics - Production and Costs Function Comment on the following statements, whether they are true, false or uncertain: (a) "The fact that the marginal product of the variable factor of production is increasing is ultimately irrelevant to the firm's cost structure, since its marginal cost curve will be increasing anyway." b) Variable Cost (VC) is ALWAYS greater than Fixed Cost (FC). c) If the Average Cost (AC) is decreasing, then the Marginal Cost (MC) is less than the Average Cost (AC).arrow_forwardBackground: A CARICOM Press Release on 16 November, 2006 stated that at the opening of the Twenty-Second Meeting of the CARICOM Council for Trade and Economic Development (COTED), Secretary General of the Caribbean Community (CARICOM) H. E. Edwin Carington opined that the implementation of the CSME was the best chance of the region coping in the face of globalization. He urged Member States to facilitate the implementation of the Single Economy, “thereby completing the process of establishing a more competitive Caribbean Regional economy”. Current Scenario: 17 years has passed since those statements were made by the then Secretary General. The Conference of Heads of Government CARICOM are scheduled to meet in one month. Your Head of State will be making a Presentation at this Meeting reviewing the competitiveness of CARICOM economies in the face of globalization. Research the extent to which the CARICOM Single Market and Economy (CSME) has established the region as a “more…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSON
Engineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education