Expect an increase or decrease in total revenue

Assignment Help Operation Management

Reference no: EM13856696

To increase revenue and profit, a firm is considering a 4% increase in price and an 11% increase in advertising. If the price elasticity of demand is -1.5 and the advertising elasticity of demand is +0.6, would you expect an increase or decrease in total revenue? Explain.

Reference no: EM13856696

Questions Cloud

Calculate the commission rate for the total sale : Use an IF function in cell H18 to calculate the commission rate for the total sale for order 1. The commission rate is 2% for all sales that total more than $10 and 1% for all sales that total more than $5. No commission is paid on sales that total $..

My assignment is dealing with the balance scoreboard : My assignment is dealing with the Balance scoreboard. I need help. I have to compare and contrast the traditional BSC and how Heathrow Terminal 5 project implemented the BSC and how it was flexible.

Competitor ratios-industry ratios-standards and trends : Analyze the financial statements using 3 years (2 if unavailable) using ratios of debt, liquidity, profitability, investing (e.g. EPS, P/E, etc.), and failure forecasting. Look at common-size analyses and year-to-year changes. Discuss competitor rati..

What rate of return is the annuity fund offering : Raul inherited an annuity worth $7046.13 from his uncle. The annuity will pay him seven equal payments of $1400 at the end of each year. What rate of return is the annuity fund offering?

Expect an increase or decrease in total revenue : To increase revenue and profit, a firm is considering a 4% increase in price and an 11% increase in advertising. If the price elasticity of demand is -1.5 and the advertising elasticity of demand is +0.6, would you expect an increase or decrease in t..

Calculate the average sublimation flux : Air at 1 atm flows at a Reynolds number of 50,000 normal to a long, circular, 1-in.-diameter cylinder made of naphthalene. Using the physical properties of Example 3.14 for a temperature of 100oC, calculate the average sublimation flux in kmol/s-m..

Maximize your return and what would be your net return : If you had $2000 to spend and it cost $100 to increase labor capacity in any plant by one hour, $200 to add one unit of subassembly A in any plant, and $250 to increase demand of any style by one unit; how would you spend the $2000 to maximize your r..

Responsibility to forecast the sales : Fiat has introduced a new car in the United States called the 500. Assume that your boss has the responsibility to forecast the sales of the 500 in the United States for the year 2012. He believes that Fiat will sell 85,000 of the 500s for 2012. Supp..

Acquire a company within the european union or outside : acquire a company within the European Union or outside of it? Why?

User Account

All Pages