Price and cost (dollars per pillow)1009080706050408223020101,000 2,000 3,000 4,000S=MCMRD5,000Quantity (pillows per hour)The figure above shows the demand, marginal revenue, and marginal cost curves for Paul's Parrot pillows, a single-pricemonopoly producer of pillows stuffed with parrot feathers. When Paul maximizes his profit, the price ispillow and the marginal cost isper pillow.perO $70; $40O $70; $60O $100; $40O $60; $40O $60; $60

The primary goal of a monopoly, like any profit-maximizing firm, is to produce and sell a quantity…

Answered: Price and cost (dollars per pillow) 100…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Ginger & Mary-Anne's Bakeshop makes triple chocolate brownies that cost $1.50 each. Past experience shows that 20% of the brownies will spoil. Assuming May wants a 40% markup based on cost and produces 200 brownies, what should each brownie sell for?
The following data is extracted from the books of Gulf company, Fixed cost OMR 12.000. Selling price OMR.8 per unit and variable cost OMR 2 per unit. How many units will be sold in excess of the breakeven point if Gulf Company wishes to make a profit of OMR 6.000 ? a. 1,000 units b. 2,000 units C. 1.500 units d. 3.000 units
Your widget factory requires GWium for polishing. GWium is expensive but worth it and a little goes a long way. Each widget requires 0.1 ounces of GWium to produce. Your supply contract enables you to buy 10,000 ounces of GWium per day for $30/ounce. This is a good deal; the market price is $40/ounce. Total cost of other materials and labor (excluding GWium) is $2.25/widget. You sell to a wholesaler, who buys all widgets you produce at a non-negotiable price of $6.25/widget. Which of the following are true. A. Selling the widgets is a much better course of action than selling the GWium B. Selling the GWium on the open market is a much better course of action than making the widgets O C. You could produce 100,000 widgets per day D. Both A and B E. Both B and C
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A pharmacist is trying to determine the inventory order and stock levels for a particular drug. The following information is available about the drug. Demand (D) 85 tablets/week Working weeks per year 52 weeks Unit holding cost per year (H) $6 Order cost (S) $44/order Standard deviation of weekly demand (sd) 15 tablets Lead time (L) 2 weeks Desired cycle service level 95% If the pharmacist uses the continuous review (Q) system to control the inventory of the drug, what would be the order quantity and reorder point? If the pharmacist uses the periodic review (P) system to control the inventory of the drug, what would be the review interval and target inventory level? (Hint: Use the EOQ model to derive the review interval P)
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Assume that, you as a management accountant, are assigned to project a college’s maintenance costs for the next year. From company records, you can collect information related to costs and volumes for two possible cost drivers. Labor hours used in maintenance. Numbers of students enrolled. Month Total Maintenance Cost Number of hours Number of students 1 16,690 238 534 2 13,560 194 532 3 13,540 108 534 4 16,060 229 530 5 12,430 101 533 6 20,860 298 537 7 18,240 244 540 8 12,310 98 540 9 13,770 108 541 10 16,990 225 538 11 20,650 289 540 12 14,770 118 539 Next Semester 1 2 3 4 5 6 TOTAL Required: Prepare a Regression Analysis to determine the Cost Function. Assume that the number of students for the first semester for the…

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