to be evaluated before a company can see if a profit has been made. To even get to the point where a profit will be made there has to be a product that is sold whether it is a tangible or an intangible product. There has to be something that the business is selling in order to make that profit. The amount of profit that is attained is the outcome of the total revenue minus the total cost. This will then show the business what the remaining profit is. Business is like a puzzle‚ all the pieces
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optimize this solution. Decrease the Price of Whole If MNC were to decrease the price of the Whole product by $0.25‚ the optimal solution would change. This decrease in price would cause Whole’s contribution margin to fall to $0.79 and the optimal profit to fall to $439.76‚ a $100.00 difference. These calculations can be found in Appendix G. The production levels‚ however‚ would not change. This is because‚ as can be seen in the Sensitivity Report‚ there is an allowable increase of $0.36 and an allowable
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If Pu is price per unit set by Speed Car to Better Car Marginal cost of Better Car (MCb) = 100 + PU Demand is given by P=1000-Q Then‚ MR is P=1000-2Q Profit maximization function of the retailer is: MR = MC 1000 – 2Q = 100 + Pu Pu = 900 – 2Q MR of the producer (Speed Cars) is given by MR = 900 – 4Q ( due to double marginalization) Profit maximization function of producer is MR = MC 900 – 4Q = 100 4Q = 800 Q = 800/4 Q = 200 For calculation of price‚ Demand curve of producer Pu = 900 -2Q Pu = 500
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X5D = yards of fabric 5 on dobbie looms Y1 = yards of fabric 1 purchased Y2 = yards of fabric 2 purchased Y3 = yards of fabric 3 purchased Y4 = yards of fabric 4 purchased Y5 = yards of fabric 5 purchased Profit Contribution per Yard: Fabric = Manufactured (Variable cost –Selling Price) Purchased = (Selling Price – Purchase Price) Fabric Manufactured Purchased 1 0.99-0.66=0.33 0.99-0.80=0.19 2 0.86-0.55=0.31 0.86-0.70=0.16 3 1.10-0.49=0.61 1.10-0
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the cost of the product‚ where similarly‚ the supplier does not incur any cost while selling the product to the buyer. This is known as perfect mobility. Maximum Profits In a perfect competition‚ suppliers only aim for profit maximization. They are not concerned with customer retention and revenue maximization. Profit maximization is determined by the quantity of product they sell. When the marginal cost‚ or the cost incurred by the production of a single unit of the product is equal to the marginal
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offer of reducing the price of signature product to $29.99 for a year. This report is a summary and analysis of current situation on West Lake Home Furnishings Ltd. (WLHFL) The analysis is based upon the basic objective of economics that is profit maximization. Based upon the present trend of consumer income and preference it is recommended that WLHFL should accept the offer to reduce the unit retail price to $29.99. As a student of WIMWI‚ I thank you for providing opportunity to learn about the
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Section 1 The case that I chose for this analysis paper was “Management A”. There are two key decision options for this case. The first is to schedule the heavy emissions work for the night shift‚ so that when the EPA tests their levels during the day‚ they are normal. The second option given to George as an ultimatum by his boss is to move the plant 15 miles south to Mexico to avoid EPA emissions restrictions and fines. Below is a Stakeholder Analysis of each of the two possible decisions. Stakeholder
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query the cloud data‚ paying the price for the infrastructure they use. Cloud management necessitates an economy that manages the service of multiple users in an efficient‚ but also‚ resource economic way that allows for cloud profit. Naturally‚ the maximization of cloud profit given some guarantees for user satisfaction presumes an appropriate price-demand model that enables optimal pricing of query services. The model should be plausible in that it reflects the correlation of cache structures involved
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years) and does not include any information with regards to seasonal trend. The fluctuation of demand in each service is a concern that needs to be addressed. Preparation of the most efficient plan of action for the upcoming year is a key to profit maximization. Highline Financial Services has complied data for their three categories of service from the past eight quarter. The data shows that the demand has been fluctuating with regards to each service. All of the company’s other factors (advertising
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objectives. Managerial decision problems like the amount of products that is needed to be produced‚ the type or kind of product to be produced‚ the technique or method of producing a product‚ the price of product‚ strategies needed to maximize the profit of the organization and other problems have to be solved in order to achieve the organization’s goals. The process of managerial decision-making applies both economic theory and the tools of decision science in solving these problems where economic
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