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Speedy Delivery Corporation
Speedy Delivery Corporation has two divisions. Division A has a profit of $100,00 on sales of $2,000,000. Division B I only able to make $25,000 on sales of $300,000. Based on profit margins (returns on sales), which division is superior?
Short term Treasury bills [3 and 6 month] have current annual rates of interest around 0.5%. Use that info plus your best forecast of inflation to calculate the real rate of interest on those bills.
Illustrate what do these numbers imply for the decision of when to open a shared facility versus two separate facilities.
Approx the marketplace demand curve and figure the existing Price elasticity of demand
Assume total benefits also total costs are given. Elucidate level of Y will yield the maximum net benefits.
In 1991, Brazil and Columbia united to form a coffee cartel and reduce coffee output. Suppose total costs for the cartel are:
Make a monthly sales forecast for the firm for 2001. Why would the managers of the Chemical Company want monthly sales forecasts of this kind.
Elucidate the historical relationship between unemployment and inflation.
Cindy gains utility from consumption and leisure. The most leisure she can consume in a week is 168 hours.
Robin and Terry are Stranded on a deserted island and consume two products, coconuts and fish. In a day, Robin can catch 2 fishes or gather 8 coconuts, and Terry can catch 1 fish or gather 1 coconut.
B3 Oraganization is a manufacturing firm that uses job order costing. The company applies overhead to jobs using a predetermined overhead rate based on machine-hours.
Illustrate what is more important for them to monitor and target, inflation or interest rates.
Illustrate what are the production elasticities of demand for labor, capital (trucks) and energy. What type of returns to scale is consistent with the above production function.
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