Find out the optimal markup on cost

Assignment Help Accounting Basics
Reference no: EM13967456

Optimal Markup on Cost

The Bristol, Inc., is an elegant dining establishment that features French cuisine at dinner six nights per week and brunch on weekends. In an effort to boost traffic from shoppers during the Christmas season, the Bristol offered Saturday customers $4 off its $16 regular price for brunch. The promotion proved successful, with brunch sales rising from 250 to 750 units per day.

A. Calculate the arc price elasticity of demand for brunch at the Bristol.

B. Assume that the arc price elasticity (from part A) is the best available estimate of the point price elasticity of demand. If marginal cost is $8.56 per unit for labor and materials, calculate the Bristol's optimal markup on cost and its optimal price.

Reference no: EM13967456

Questions Cloud

What you plan to implement in your life. : Write about what was included in each chapter. You are welcome to add what you learned or how you felt, but you will be graded on writing about what was included in each chapter.
Find the operating frequency of the power system : It is operating in parallel with a 480-V 150-kW four-pole 50-Hz synchronous generator whose prime mover has a no-load speed of 1500 r/min and a full-load speed of 1485 r/min. The loads supplied by the two generators consist of 200 kW at 0.85 PF l..
Determine point price elasticity of demand : Illustrate the relation between the optimal markup on price and the point price elasticity of demand.
Review about tacit and explicit knowledge : The perspectives of KM. Review about tacit and explicit knowledge. Understand the concept of corporate amnesia. Understand the Concept Analysis technique.
Find out the optimal markup on cost : The Bristol, Inc., is an elegant dining establishment that features French cuisine at dinner six nights per week and brunch on weekends. In an effort to boost traffic from shoppers during the Christmas season, the Bristol offered Saturday customer..
What generator rate of shaft rotation after paralleling : The governor setting on the diesel is now increased. Show both by means of house diagrams and by means of phasor diagrams what happens to the generator. How much reactive power does the generator supply now?
Determining the markup on cost : Brake-Checkup, Inc., offers automobile brake analysis and repair at a num- ber of outlets in the Philadelphia area. The company recently initiated a policy of matching the lowest advertised competitor price.
Discuss & interpret the financials in relation to initiative : Write a 350 - 700 word analysis of the company's short term and long term financing needs and determine strategies for the company to manage working capital.
Define the term value-added analysis : Define the term "value-added analysis." Provide a brief explanation about how the concept of "value-added analysis" entered into the industry, including the person who authored the concept and the premise for introducing the concept in the industr..

Reviews

Write a Review

Accounting Basics Questions & Answers

  An employee highly skilled receives an hourly rate of 40

an employee highly skilled receives an hourly rate of 40 with time and a half for all hours worked in excess of 40

  Dunn is a large local accounting firm located in a

dunn is a large local accounting firm located in a southwestern city. carlos ruiz one of the firms founders appreciates

  Long-term strategic marketing goals

long-term strategic marketing goals

  What about a foreign-based multinational corporation

Does a state have the authority to require a U.S.-based multinational corporation to compute its state taxable income on a worldwide combined reporting basis? What about a foreign-based multinational corporation? Explain.

  On the first day of the fiscal year harris company borrowed

on the first day of the fiscal year harris company borrowed 65000 by giving a 10-year 6 installment note to cuba bank.

  The stockholders equity section of leyland corporations

the stockholders equity section of leyland corporations balance sheet at december 31 is presented here.leyland

  Irrespective of market structure considerations

The statement "You get what you pay for" reflects the common perception that high prices indicate high product quality and low prices indicate low quality. Irrespective of market structure considerations, is this statement always correct?

  Break even sales in units and cost volume profit chart

Aspen Co. expects to maintain the same inventories at the end of 2008 as at the beginnign of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various depart..

  Which of the following is a main accounting contribution to

which of the following is a major accounting contribution to the managerial decision-making process in evaluating

  Describe the purpose of each of four financial statements

Prepare a 700 -1,050 word paper in which you identify the four basic financial statements. Describe the purpose of each of the four financial statements. Discuss how the financial statements would be useful to internal users, such as to managers ..

  Tax consequences to oriole on distribution

What are the tax consequences to Oriole Corporation on the distribution of the land? If the land is, instead, subject to liability of $700,000, what are the tax consequences to Oriole on the distribution?

  Bxv inc is considering a 15-year investment project that

bxv inc. is considering a 15-year investment project that will cost 300000. it is estimated that none of the 300000

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd