A firm is charging $10 per gallon a bag, it sells aprox 1 million bags per...
A firm is charging $10 per gallon a bag, it sells aprox 1 million bags per month. The firm has estimated that its price elasticity of demand at current prices is approx -2
- The firm is increasing the price from $1 to $9. How many bags per month will it sell at the new price?
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A firm is charging $10 per gallon a bag, it sells aprox 1
million bags per...
Suppose you have been tasked with regulating a single monopoly firm that sells 50-pound bags of concrete. The firm has...
Suppose you have been tasked with regulating a single monopoly firm that sells 50-pound bags of concrete. The firm has fixed costs of $30 million per year and a variable cost of $2 per bag no matter how many bags are produced nstructions: Enter your answers as whole numbers. In part e, round your answer to 2 decimal places. a. If this firm kept on increasing its output level, would ATC per bag ever increase? Yes Is this a decreasing-cost...
Check my work Suppose you have been tasked with regulating a single monopoly firm that sells 50-pound bags of conc...
Check my work Suppose you have been tasked with regulating a single monopoly firm that sells 50-pound bags of concrete. The firm has fixed costs of $10 million per year and a variable cost of $1 per bag no matter how many bags are produced Instructions: Enter your answers as whole numbers. In part e, round your answer to 2 decimal places. a. If this firm kept on increasing its output level, would ATC per bag ever increase? Click to...
Amalgamated Popcorn, Inc. sells bags of flavored gourmet popcorn in a popular mall. As shop owner...
Amalgamated Popcorn, Inc. sells bags of flavored gourmet popcorn in a popular mall. As shop owner and operator, Rhea estimates the demand for flavored popcorn to be: Q = 1,200 – 800P + 2A, where A denotes advertising weekly spending (in dollars), Q is the bags of popcorn demanded and P is the price of a bag of popcorn. She is currently charging $1.50 per bag of popcorn (for which the marginal cost is $0.75) and spending $500 per week...
The Mix Cement Company sells bags of cement for $32 per bag. Fixed costs of production...
The Mix Cement Company sells bags of cement for $32 per bag. Fixed costs of production are $55,000 and variable costs are $10 per bag. a. What is Mix’s break-even point in units and sales dollars? b. How much profit will the company earn at sales levels of (i) 3,000 bags and (ii) 4,000 bags? c. How many bags would Mix have to sell to earn a profit of $70,000?
Organic Oranges Bag Company has the following figures for August 2020: Bags sold: 40,000 Price per...
Organic Oranges Bag Company has the following figures for August 2020: Bags sold: 40,000 Price per bag: $10 Variable cost per bag: $4 Fixed cost: $120,000 (1) Calculate the breakeven number in units for August. (2) How many bags does the firm need to sell in September to make a target profit of $150,000? Please show all work for the problem.
The Gentry Garden center sells 10,000 bags of lawn fertilizer annually. Each bag costs the firm...
The Gentry Garden center sells 10,000 bags of lawn fertilizer annually. Each bag costs the firm $2.00, inventory carrying cost is 20%, and the cost of placing an order with the supplier is $20. Answer the following questions: 1) What is the firm’s Economic Ordering Quantity? 2) What is the firm’s average inventory? 3) How many times must the firm order inventory in a year?
3) Your company manufactures candy that sells in small bags through pharmacies like Walgreens. You sell...
3) Your company manufactures candy that sells in small bags through pharmacies like Walgreens. You sell to a wholesaler who then sells to Walgreens. Demand for your candy is 1,000,000 bags per year through Walgreens. Your manufacturing cost is $.50 per bag and Walgreens sells each bag for $2.00. Walgreens has a contribution margin of 25% and the wholesaler has a contribution margin of 20%. a. What is your selling price to the wholesaler and your contribution margin? b. If...
Barefoot sells about 1,200 t-shirts per month at $27 each. The own price elasticity for these...
Barefoot sells about 1,200 t-shirts per month at $27 each. The own price elasticity for these shirts is estimated to be 1.25, if the price of the shirts are increased to $30: How many shirts will they sell at the new price? The revenue will change by? Consumers will better or worse of as a result of the price change?
A chemical firm produces sodium bisulfate. Demand for this product is 400 bags per day. The...
A chemical firm produces sodium bisulfate. Demand for this product is 400 bags per day. The capacity for producing the product is 1,000 bags per day. Setup costs 100 SR, and storage and handling costs are 0.25 SR per bag per year. The firm operates 200 days a year. Note: Round Qp to an integer value, but round any other values to a maximum of two decimals. a. How many bags per run are optimal? b. What would the average...
A sand and gravel company sells pea gravel. It faces two types of customer with the following inverse demand curves: Type A: P-3.5-0.0020 Type B: P-3-0.0010 Where Q measures bags of pea gravel an...
A sand and gravel company sells pea gravel. It faces two types of customer with the following inverse demand curves: Type A: P-3.5-0.0020 Type B: P-3-0.0010 Where Q measures bags of pea gravel and P is the price per bag. The marginal cost is $0.50. (a) Suppose the firm wants to use discounting to price-discriminate. Calculate the price per bag and the price per bag with the quantity discount. What minimum quantity will the firm set for the quantity discount?...
Suppose you have been tasked with regulating a single monopoly firm that sells 50-pound bags of concrete. The firm has fixed costs of $30 million per year and a variable cost of $2 per bag no matter how many bags are produced nstructions: Enter your answers as whole numbers. In part e, round your answer to 2 decimal places. a. If this firm kept on increasing its output level, would ATC per bag ever increase? Yes Is this a decreasing-cost...
Check my work Suppose you have been tasked with regulating a single monopoly firm that sells 50-pound bags of concrete. The firm has fixed costs of $10 million per year and a variable cost of $1 per bag no matter how many bags are produced Instructions: Enter your answers as whole numbers. In part e, round your answer to 2 decimal places. a. If this firm kept on increasing its output level, would ATC per bag ever increase? Click to...
3) Your company manufactures candy that sells in small bags through pharmacies like Walgreens. You sell to a wholesaler who then sells to Walgreens. Demand for your candy is 1,000,000 bags per year through Walgreens. Your manufacturing cost is $.50 per bag and Walgreens sells each bag for $2.00. Walgreens has a contribution margin of 25% and the wholesaler has a contribution margin of 20%. a. What is your selling price to the wholesaler and your contribution margin? b. If...
A sand and gravel company sells pea gravel. It faces two types of customer with the following inverse demand curves: Type A: P-3.5-0.0020 Type B: P-3-0.0010 Where Q measures bags of pea gravel and P is the price per bag. The marginal cost is $0.50. (a) Suppose the firm wants to use discounting to price-discriminate. Calculate the price per bag and the price per bag with the quantity discount. What minimum quantity will the firm set for the quantity discount?...
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