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Robinson Plastics makes clear plastic products with injection molding techniques. Their latest invention is a plastic cup with a sharp blade mounted inside to cut prescription pills into small pieces. The cup is Estimating Demand 42 placed over the pill, and as the cup is pressed down, the pill is split into pieces, and contained inside the cup. Because the cup is above the pill, persons can see how the pills are cut, and keep the pieces of the pill contained. The presumed market is pharmacies, which would then sell to customers who want to reduce dosage size. A survey of local drug manufacturers and retailers suggests that the market demand for the next year can be characterized by: Q = 2,000,000 - 100,000P + 5A where Q = unit sales, P = price in dollars, and A = advertising expenditure in dollars in trade journals and publications. Robinson is considering a price of either $1 or $2, and an advertising budget of $10,000. Robinson has estimated production cost at $.75 a unit. a. Compute the quantity sold and elasticity at a price of $1, and also at a $2 price, assuming the given advertising budget. b. What is the advertising elasticity at a price of $2? Give an interpretation of the advertising coefficient.
Kathy’s Blooms purchased a delivery van for $20,000. The company was given a $2,000 cash discount by the dealer, and paid $1,000 sales tax. Annual insurance on the van is $500. As a result of the purchase, by how much will Kathy’s Blooms increas..
when a business is considering whether to replace old equipment with the newer equipment the original cost of the old -compared new equipment is information relevent to the business decisions?
The board of directors of the entity receiving the property should guess a value for the property that will serve as a basis for the transaction
During 2009, HS opened a branch office in the metropolitan area 30 kms from its principal place of business. Although this branch is not yet profitable ( as a result of competition from several well-established banks), management believes it will ..
Descriptive Questions-Basic Accounting Principle like Advance payments from customers for future services and the current assets of most companies.
The subsequent accounts are denominated in pesos as of 31st December, 2013. For reporting purposes, these amounts need to be stated in U.S. dollars.
Journalizing adjusting entries and Journalize the adjusting entry needed at December 31 for each of the following independent situations.
What are the two kinds of implied warranties for which warranty liability can be imposed in connection with a negotiable instrument and what kind of personal defenses can he raise against enforcement of a negotiable instrument by an ordinary holde..
What affect will this have on operating income
Traditional project evaluation/capital budgeting analysis consider a firm's only choice is accept or reject a program.
Present a schedule showing the revised income before income taxes for each of the years ended March 31, 2006, 2007, and 2008. (Make computations to the nearest whole dollar.)
What aspects of the company can you change in order to reduce the amount of fraud that is accruing? Use five most known factors relating to creating a culture of honesty, openess, and assistance to explain your answer.
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