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1- Explain how the break-even quantities and operating leverages are affected by the relationships between fixed and variable costs.
2- Explain how expanding a company's division with the highest operating leverage would affect the company's risk position.
3- Explain how a break-even calculation (based on different price levels) can affect your analysis, and use the notion of operating leverage to assess the risks and rewards associated with production level option.
In the aftermath of September 11 terrorist attacks, the quantity of sold airline tickets in 2002 fell by a large percentage when compared to 2001. During the same time period the average price for airling tickets also fell.
Find out the breakeven output and total sales revenues. Estimate the output that would generate total profit of 60,000 and total sales revenue at that output level.
Price elasticity of demand and Income elasticity of demand What impacts will have the construction of a new natural gas company on oil demand. And on electricity demand? Justify.
XYZ Corporation faces a horizontal demand curve and the market price is given to be $15. Compute the shutdown price of operations for Corporation XYZ.
Many retail companies use mark up pricing? Setting price some percentage above variable cost (such as 50% above cost).
Name any good or service which has a noticeable recent price change. Using concepts of supply and/or demand, what are some possible explanations for this change in price?
Compute the industry prices necessary to induce short-run quantities supplied by the firm of 5,000, 10,000, 15,000 tons of sweet peas. Assume that MC>AVC at every point along the firm's marginal cost curve and that total costs include a normal pro..
What are some things that would affect changes in supply? How can quantity demanded be changed and what if the government raised the minimum wage. How would this policy effect your firm?
Explain the median housing price in a community
Which of the following is NOT a condition for price discrimination? Different groups of consumers should be charged differing prices for the same product. The firm's demand curve should be downward sloping.
Discuss how Internet security measures can actually create opportunities for criminals to steal, rather than prevent them.
what is the least-cost input-combination of labor and capital and how much output is produced with that set of resources?
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