Is janice using marginal cost and marginal revenue correctly

Reference no: EM131174782

21st Century Liquors - QUESTIONS

Assume that you are Janice Wilton and you have been asked to elaborate on the memo in Exhibit 1 to address the issues raised by Ted Radcliff in both of his conversations with you. Use the report form from the course website and please be certain to address all of the following issues:

Q. 1. What conditions would justify the assumption of a constant contribution margin per customer? Do you think those conditions are likely to hold here? To support your conclusions, do a scatter plot of the sample data, and then use the sample data to run a regression of purchase costs (dependent variable) on purchase revenues (independent variable). [Hint: What is the meaning of the intercept term of your regression results?]

Q. 2. Is there good reason to believe that evening customers purchase, on average, more than day customers? Support your answer by performing a statistical test on the difference between the mean day purchase and the mean evening purchase.

Q. 3. Is Janice using marginal cost and marginal revenue correctly in her analysis? Explain the errors in her analysis, if any. [Hint: Think about Ted Radcliff's questions.]

Attachment:- 21st-Century-Liquors-Case.rar

Reference no: EM131174782

Questions Cloud

What specific economic policies would you propose : What specific economic policies would you propose to accomplish these goals? What do you believe would be the short- and long-term effects of your policies on both inflation and unemployment rates?

Compute the energy loss for gradual enlargements : Compute the energy loss for gradual enlargements with cone angles from 2° to 60° in the increments shown in Fig. 10.5. For each case, water at 60°F is flowing at 85 gal/ min in a 2-in Schedule 40 steel pipe that enlarges to a 6-in Schedule 40 pipe..

Which strategies do you plan to utilize and why : In addition, explain how the communication plan addresses what you are hoping to achieve with your strategic goal. What leadership or managerial skills will you draw upon in implementing this plan?

Example of a scenario that participated : Provide an example of a scenario that you participated in or witnessed in a work setting in which a supervisor questioned members about their leadership performances and then explained how the results were used and future projects were executed. W..

Is janice using marginal cost and marginal revenue correctly : Is Janice using marginal cost and marginal revenue correctly in her analysis? Explain the errors in her analysis, if any. [Hint: Think about Ted Radcliff's questions.]

Vietnam emerging market potential : International Management Case, Vietnam's Emerging Market Potential, in the text, and answer the corresponding questions:

Determine the energy loss for a gradual contraction : Determine the energy loss for a gradual contraction from a DN 125 Schedule 80 steel pipe to a DN 50 Schedule 80 pipe for a flow rate of 500 L/min. The cone angle for the contraction is 105°.

Restatement and foreseeability standards : There are three standards that we studied this week, including also the Restatement and foreseeability standards. Of the three standards that we studied, which do you think is the best in terms of doing justice between all the parties involved in ..

Discussing the fact that the corporation : Let's assume that you are in a restaurant and overhear a conversation at the next table between some insiders to a publicly traded Corporation were discussing the fact that the Corporation will be coming out with something in the near future that ..

User Account

All Pages