News clipping service is considering modernization

Assignment Help Business Economics
Reference no: EM131253090

A news clipping service is considering modernization. Rather than manually clipping and photocopying articles of interest and mailing them to its? clients, employees electronically input stories from most widely circulated publications into a database. Each new issue is searched for key? words, such as a? client's company? name, competitors'? names, type of? business, and the? company's products,? services, and officers. When matches? occur, affected clients are instantly notified via an online network. If the story is of? interest, it is electronically? transmitted, so the client often has the story and can prepare comments for? follow-up interviews before the publication hits the street. The manual process has fixed costs of $420,000 per year and variable costs of $6.40 per clipping mailed. The price charged to the client is $10.00 per clipping. The computerized process has fixed costs of ?$1,400,000 per year and variable costs of $2.30 per story electronically transmitted to the client.

If the same price is charged for either? process, what is the annual volume beyond which the automated process is more? attractive?

Please Show All Work

Reference no: EM131253090

Questions Cloud

Changes in demand and supply : Problems 6–9 are based on the model of demand and supply for coffee as shown in Figure 3.10 "Changes in Demand and Supply". You can graph the initial demand and supply curves by using the following values, with all quantities in millions of pounds of..
Draw production possibility frontier of world if migration : Suppose that in England 5 man-hours are required to produce each cask of wine and 5 man-hours are required to produce each bolt of cloth, whereas in Portugal 1 man-hour is required for a cask of wine and 4 man hours for a bolt of cloth. Draw the prod..
What is the equilibrium price of bagels : Problems 1–5 are based on the graph below. At a price of $1.50 per dozen, how many bagels are demanded per month? What is the equilibrium price of bagels? What is the equilibrium quantity per month?
Income elasticity and cross-price elasticity of demand : Suppose the own price elasticity of demand for good X is -3, its income elasticity is 1, its advertising elasticity is 2, and the cross-price elasticity of demand between it and good Y is -4. Determine how much the consumption of this good will chang..
News clipping service is considering modernization : A news clipping service is considering modernization. Rather than manually clipping and photocopying articles of interest and mailing them to its? clients, employees electronically input stories from most widely circulated publications into a databas..
Determine which game this is and find the nash equilibrium : Your professor lost two homework assignments, one which was yours and one which belonged to one of your classmates. Your professor remembers that the grade was the same on both assignments, but doesn't remember what it was. Assume that players can on..
Find the set of nash equilibrium : There are d democrats and r republicans voting in the US Presidential election. Each person decides whether to vote or not vote. The voters get a payoff of 2,1,0 if their preferred candidate wins, ties, or loses (respectively). Voters that vote incur..
Assume the market for hammers is perfectly competitive : Assume the market for hammers is perfectly competitive and the current price is $15. If, at this price, the quantity of hammers demanded is 15,000, while the quantity supplied is 25,000, then
Values two goods-money and her integrity : Susan Chen is a stock analyst. She values two goods: money (income) and her integrity. Her bonus is based on the number of investments she recommends to the company. Generally speaking, the higher the bonus she receives

Reviews

Write a Review

Business Economics Questions & Answers

  Delaware senate approved gun buyback program

On June 14, 2011, the Delaware Senate approved a gun buyback program. The yearlong program would authorize the state to pay $100 for every gun turned over to police. What sort of guns should Delaware officials expect to get if this plan becomes law?

  Most four positive internal rate of return values

Given the following end-of-year cash flows, which one of the following statements is correct? By Norstrom’s criterion, there will be at most four positive internal rate of return (IRR) values. By Norstrom’s criterion, there will be at most one positi..

  Additional ads would generate similar response rates

The first national bank received 3,000 inquiries following the latest advertisement describing its 30-month IRA accounts in the Boston World, a local newspaper. Assuming that additional ads would generate similar response rates, is the bank running a..

  Greater productive efficiency than the china

The United States can make certain toys with greater productive efficiency than can the China. Yet we import those toys from China.

  Consider the problem of picking a price for an economics

consider the problem of picking a price for an economics textbook. the marginal cost of production is constant at 20

  Lerner index

A firm sells 10 units at a price of 20. The marginal cost of production for this firm is MC(q)=5+q. What is this firm’s Lerner Index?

  Increase production and decrease their average costs

Monopolistically competitive firms is that they do not operate at the minimum of their Average Total Costs – in other words, they could increase production and decrease their average costs – why don’t they?

  Are the extens liable under their indorsers liability

On August 10, 2012, Theta Electronic Laboratories, Inc., executed a promissory note to George and Marguerite Thomson. Three other individuals, Gerald Exten, EmilO’ Neil, and James Hane, and their wives also indorsed the note. Are the Extens liable un..

  The market value of the forklift decreases

A forklift can be purchased for $30,000. The market value of the forklift decreases by 20% of the previous year’s value for 2 years, and then by 15% in years 3 through 10. Maintenance is $400 in years 1 and 2, and then jumps to $750 in year 3. After ..

  What is the law of demand

Insurers want to understand the Bay Area market for pediatric physician primary care services, to help decide the appropriate reimbursement rate for a pediatric primary care visit. Let the demand for pediatric visits be Q = 240 – P, and let the suppl..

  Using the national savings and investment identity

Using the national savings and investment identity, explain how each of the following changes (ceteris paribus) will increase or decrease the trade balance:

  Oil and gasoline prices in the united states

Oil and gasoline prices are a concern in the United States. Why does this economic problem exist from a supply and demand perspective, what can be done to improve resource allocations.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd