An inquiry arrived from a client

Assignment Help Business Management

Reference no: EM13157872

An inquiry arrived from a client, Noise Unlimited Inc. This firm sells luxury stereo systems through its retail outlets. At a price of $800 per system, NU, Inc. sold about 600 systems per month. The new general manager for this product, Eli Sticity, decided that they needed more revenues and increased price to $1200. However NU, Inc. is now only selling 100 systems per month at that price. What is the price elasticity for this product (need to calculate this and show your work?) Define price elasticity and explain how it should be used for pricing this product. What do you recommend for the pricing of this product (i.e. Should it stay at $1200, be increased, decreased, how do we find the optimal price?)

Reference no: EM13157872

Questions Cloud

What is the amount of zinc chloride that is produced : If 0.600 gram of zinc is used, what is the amount of zinc chloride that is produced in the above reaction?

What is the final temperatue of the mixture : if you have 370 ml of water at 25 degrees Celcius and 130mL of water at 95 degrees C. what is the final temperatue of the mixture?

Net cash low attributable toasset purchase in each year : In 2012, Firm A paid $50,000 cash to purchase a tangible business asset. In 2012 and 2013, it deducted $3,140 and $7,200 depreciation with respect to the asset. Firm A's marginal tax rate in both years was 35 percent. a. Compute Firm A's net cash low..

What is the new temperature? : A sample of neon gas has a volume of 282 mL AT 160 degrees celsius. The sample is cooled at constant pressure to a volume of 685 mL. What is its new temperature?

An inquiry arrived from a client : An inquiry arrived from a client, Noise Unlimited Inc. This firm sells luxury stereo systems through its retail outlets. At a price of $800 per system, NU, Inc. sold about 600 systems per month. The new general manager for this product, Eli Sticity, ..

Occurance of future taxable amount : At the December 31, 2007 balance sheet date, Garth Brooks Corporation reports an accrued receivable for financial reporting purposes but not for tax purposes. When this asset is recovered in 2008, a future taxable amount will occur and

How much concentrated sulfuric acid would be needed : Concentrated sulfuric acid has a concentration of 18 M. How much concentrated sulfuric acid would be needed to make 255 mL of 1.0 M sulfuric acid?

What is the current equity : What is the amount of projected assets?What is the amount of projected liabilities?What is the current equity?

How many moles of naoh were in excess after the first : What is the concentration of the HNO3 solution? (b) How many moles of NaOH were in excess after the first addition?

User Account

All Pages