Decreased the average selling price of its phones

Reference no: EM13686157

Revenue at a major cellular telephone manufacturer was $2.3 billion for the nine months ending March 2, up 85 percent over revenues for the same period last year. Management attributed the increase in revenues to a 108 percent increase in shipments, despite a 21 percent drop in the average blended selling price of its line of phones. Given this information, is it surprising that the company’s revenue increased when it decreased the average selling price of its phones? Describe

Reference no: EM13686157

Questions Cloud

Appliance manufacturers promote service contracts : Discuss each of the pricing strategies below. What conditions are necessary to make each strategy successful in terms of increasing profits? Describe your answer. A local restaurant/bar offers discounted drinks through â happy hour, from 5 to 6 PM on..

Contrast and compare the types of risk manufacturing firms : Contrast and compare the types of risk manufacturing firms face with the risks to which service firms are exposed. Identify one way by which either a manufacturing firm or a service firm might minimize risk.

Explain about cannibalization analysis : Explain about Cannibalization Analysis - Explain the concept and the cannibalization table.

A monopolist is currently hiring : A monopolist is currently hiring 5,000 units of labor. At this level, the marginal revenue of output is $10, the (fixed) wage rate is $300, and the marginal product of labor is 50. In order to maximize profit, the firm must

Decreased the average selling price of its phones : Revenue at a major cellular telephone manufacturer was $2.3 billion for the nine months ending March 2, up 85 percent over revenues for the same period last year. Management attributed the increase in revenues to a 108 percent increase in shipments, ..

Explain abells three-dimensional business-definition model : Explain Abell’s three-dimensional business-definition model and explain where it can be utilized. Then, consider Reader’s Digest Association, publisher of Reader’s Digest, the largest circulation magazine in the world in 1992.

Hugely successful web company has utilized free economics : Suppose a hugely successful web company has utilized free economics, expanded its scale of operations also spread its long-run costs over larger also larger audiences. After years of profits, the company's profits fell continuously. Using production ..

What level of excess reserves does the bank now have : Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is 20%. Households deposit $10,000 in currency into a checking account at the bank and that currency is added to reserves. What level of excess reserves..

Presume that three risk-neutral bidders are interested : Presume that three risk-neutral bidders are interested in purchasing a Princess Beanie Baby. The bidders (numbered 1 through 3) have valuations of $12, $14, and $16, respectively. The bidders will compete in auctions as described in parts (a) and (b)..

User Account

All Pages