About the no haggle sales policy

Assignment Help Business Economics

Reference no: EM131171233

You are the owner of a local Honda dealership. Unlike other dealerships in the area, you take pride in your “No Haggle” sales policy. Last year, your dealership earned record profits of $1.5 million. In your market, you compete against two other dealers, and the market-level price elasticity of demand for midsized Honda automobiles is -1.6. In each of the last five years, your dealership has sold more midsized automobiles than any other Honda dealership in the nation. This entitled your dealership to an additional 25 percent off the manufacturer’s suggested retail price (MSRP) in each year. Taking this into account, your marginal cost of a midsized automobile is $12,000. What price should you charge for a midsized automobile if you expect to maintain your record sales?

Reference no: EM131171233

Questions Cloud

What amplification factor must be applied to the signal : Two microphones having sensitivities of -55 and -70 dB are available. What amplification factor must be applied to the signal of the least sensitive unit in order to make its output the same as the other microphone?

Do you agree with the findings : In what areas did you score high and low? Do you agree with the findings? How do these traits help you to be a creative thinker?

Presentation on supply chain : Do presentation on PowerPoint handling the subject of (Supply Chain in a thousand word), this will be presented in front of investors and the don't have the full pictures about this dept.

Optimal for the monopoly to produce : The demand function is P = 850 - 20Q. If a monopoly's marginal cost is 50, what is the monopoly's optimal equilibrium quantity if it is optimal for the monopoly to produce?

About the no haggle sales policy : You are the owner of a local Honda dealership. Unlike other dealerships in the area, you take pride in your “No Haggle” sales policy. Last year, your dealership earned record profits of $1.5 million. Taking this into account, your marginal cost of a ..

Where would you locate the bar and grill establishment : What are the local and state regulations for operating a bar and grill establishment? What are the ethical issues involved operating a bar and grill establishment? Where would you locate the bar and grill establishment

Compare the sound-level-meter weighting-characteristic curve : Compare the sound-level-meter weighting-characteristic curves with the loudness curves of 40, 70, and 90 phon, corresponding to the A, B, and C scales, respectively.

Conspicuous consumption forms : How does snob appeal/conspicuous consumption forms a situation when more is demanded when the price increases

Economists use ceteris paribus : Why do economists use ceteris paribus as an expression meaning all other things remaining constant?

User Account

All Pages