Suppose that an employee at a coffee shop is willing to work 30 hours per week when she is paid $10.00 per hour. When she is offered araise to $16.00 per hour, she is willing to work 40 hours per week.Her price elasticity of supply is(Note: use the midpoint method and give your answer to two decimal places.)

Price elasticity of supply is a measure that quantifies how responsive the quantity supplied of a…

Answered: Suppose that an employee at a coffee…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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For a given perishable product, a retailer pays $5 for each unit, then sells them for $10 each. At the end of the day, units not sold at the store are disposed of, and the retailer receives just $1 for each. Given the following probability distribution describing daily demand, how many units should be stocked? x Prob. (Demand = x) x Prob. (Demand = x) 0 0.01 7 0.18 1 0.02 8 0.14 2 0.04 9 0.09 3 0.07 10 0.05 4 0.09 11 0.02 5 0.12 12 0.01 6 0.15 13 0.01
A package holiday company is about to block book hotel rooms for the coming season. The number of holidays actually booked is equally likely to be any number between 0 and 99 (for simplicity rather than reality). Each room booked costs the company $250 and they can sell them for $350. a) How many rooms should the company book if unsold rooms have no value? b) How many rooms should it book if unsold rooms can be sold as last-minute bookings for $100 each?
The entry to record cost of goods sold at the end of the month is a: Debit to Work in Process Inventory and a credit to Finished Goods Inventory. Debit to Cost of Goods Sold and a credit to Finished Goods Inventory. Debit to Finished Goods Inventory and a credit to Cost of Goods Sold. Debit to Finished Goods Inventory and a credit to Work in Process Inventory.
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S5. Account
Boston Company use a special part in manufacturing of its finished products. The unit cost thisspecial part is $ 35, and details of its manufacturing cost is as follows. The $35 unit productcost of this part is based on average 25,000 number of parts produced each year.An outside supplier has offered to supply the 25,000 parts at a cost of $30 per part. The specialequipment used to manufacture the above part. This equipment can only be used formanufacturing of this part and if not used it has no resale value.The total amount of general factory overhead, which is allocated based on direct labor-hours,would be unaffected by this decision because it is fixed cost..Suggest the management whether to stop producing internally and buy them from theoutside supplier?Description CAD Direct Materials 10Direct Labor 6Variable overheads…
Mary hopes to sell 10,000 pieces of chrysanthemum last November but she was able to sell 15,000 chrysanthemum. Her chrysanthemum is sold at 20 pesos each. Her total expenses was 150,000, hence, cost per unit is 15.00. What was her sales volume? * 300,000 150,000 10,000 O 25,000 O 15,000
As a potential owner of a club known as Club Salida, you are interested in determining the necessary volume of sales in dollars to reach the breakeven next year. You decided to break down the club's sales into. four categories, where beer is the first. Your estimate of the sale of beer is that it will serve 30,000 servings. The selling price per unit will average $ 1.50; its cost is $ .75. The second category is food, of which you expect sell 10,000 units with an average unit price of $ 10.00 and a cost of $ 5.00. The third category is desserts and wine, of which you also hope to sell 10,000 units, but with an average unit price of $ 2.50 and a cost of $ 1.00. The last category is inexpensive lunches and sandwiches, of which you expect sell a total of 20,000 units with an average price of $ 6.75 and a cost per unit of $ 3.25. Your fixed costs (i.e. rent, utilities, etc.) are $ 1,800 a month plus $ 2,000 a month for entertainment. a) What is your breakeven point in dollars per month? b)…
A company has the following demand data for the last three years of sales for their popular product B. There are currently 5 workers assigned to the production line, each capable of producing approximately 8 units per month. It is assumed that each month has the same number of production days. They can hire more workers at a hiring and training cost of $800 per worker. If they layoff any workers, the unemployment cost is $2,000 per worker. The product has a standard production cost (labor, material, and overhead) of $300 per unit. The extra cost to produce one unit on overtime is $50 and the maximum overtime is two units per month per worker. They can use inventory but it will cost them $25 per unit per month for any unit in inventory at the end of the month. Failure to meet market demand typically will imply the customer will buy from another supplier, and therefore cost the company $100 in profit. They currently have 0 units in inventory. a. Use the demand data to develop a forecast…
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A building has an NOI of $130,000 and is being valued with a cap rate of 4%. Using the income approach, what is the value of the building? $4,130,000 $1,300,000 $3,250,000 $2,450,000

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