No haggle sales policy
Course:- Business Economics
Reference No.:- EM13987005

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Business Economics

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 $14,000.

What price should you charge for a midsized automobile if you expect to maintain your record sales?

Instruction: Round your answer to two decimal places.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Business Economics) Materials
This section provides the opportunity to develop your course project. Conducting an internal environmental scan or organizational assessment, provides the ability to put the
Suppose that there is a net government disbursement of $80 (i.e., the government’s payments to the public exceed its receipts from the public by $80). In the absence of any of
Using the midpoint? formula, calculate the price elasticity of demand if a price rise from? $8 to? $10 and decreases the quantity demanded from 20 units to 15 units. The price
Your task is to use information about existing economic conditions to forecast U.S. and Canadian interest rates. The following information is available to you. Over the past s
To be successful leaders in the global business world of the 21st century, managers must consider economic trends, behavior, and ramifications of economic decisions. Managers
Technology is now being developed so that road use can be priced by computer. A computer in the surface of the road picks up a signal from your car and automatically charges y
Assume a firm has just released a large advertising campaign that turns out to be highly successful. Assume the costs have already been included in the analysis. Explain what
Suppose a domestically produced motor bicycle sells at a world price of $5,000 under unrestricted trade. The domestic producer uses $3,000 worth of imported inputs, (VA*). Wha