Recommend to maximize our cash flow

Assignment Help Business Economics
Reference no: EM132491841

Welcome onboard to Chevy's South Eastern Division. I would like you to analyze our current pricing scheme on the Chevy Tahoe and give me a recommendation on how we can increase our cash flow. Our sales department has estimated the following semiannual demand Q = 25,000 - 1.25PTAH + 1.5PSEQ. Notice that we have included the impact that the Toyota Sequoia has on our Tahoe demand as it currently is our principal rival in the geographic region. We are currently charging $42,500 for our base Tahoe and we notice that Toyota is currently charging $50,000 for its base Sequoia. Let me know what price you would recommend to maximize our cash flow, I am hoping there is room to bring our price point more in line with the Sequoia.

Reference no: EM132491841

Questions Cloud

Wage is matchstick paying its workers : If Matchstick is employing 27 units of labor, then what wage is Matchstick paying its workers if the firm is maximizing profit?
Development advocated by amartya sen : What is the approach to development advocated by Amartya Sen?
Change in the price of nonlabor resources : Assume there is no productivity increase and no change in the price of nonlabor resources.
Calculate hhi for halloumi cheese in tr : Assume in there are 20 Halloumi Cheese producers in TR. Assume each of first 15 of them have 2% share while the remaining 5 have 14% share.
Recommend to maximize our cash flow : Let me know what price you would recommend to maximize our cash flow, I am hoping there is room to bring our price point more in line with the Sequoia.
Topic-capital market history : What is the only relevant decision for independent projects if an unlimited capital budget exists?
How much do you need to invest in each bond : How much do you need to invest in each bond to immunize your portfolio to ensure you meet your obligation?
What is the expected return of jockie : You are analysing Jockie Industries. It has a beta of 1.2. The expected return on a market portfolio is 10%, and risk free rate is 4%.
Implications for interpreting pe ratios : How does the forecasting of growth rate on future cash flows affect this approach of valuation? Are there implications for interpreting P/ E ratios?

Reviews

Write a Review

Business Economics Questions & Answers

  Enforcement costs are critical to success of environmental

A cost-effective policy is always socially efficient. Enforcement costs are critical to the success of environmental program and should be included in the overall social costs of the program when evaluating different policy options

  Forecasts of future inflation is a move towards

Do you think the Fed's recent changes to explicitly tie the next policy moves to the unemployment rate and forecasts of future inflation is a move towards

  What happens when the price level rises

What happens when the price level rises? Which of the following best describes what happens when the price level rises? If a government started with a deficit and moved to a surplus, which of the following best describes the effects of these changes?

  Creating store objects and restaurant objects

You should test creating Store objects and Restaurant objects, your set methods and get methods, toString and equals methods.

  The cost measure sellers use to determine whether

The cost measure sellers use to determine whether or not to produce the optimal (i.e. profit maximizing) level of output is:

  Economic forms determine government forms

Write a few pages where you explain why forms of government in Europe (and America) changed around the same time mercantilism collapsed and the new market economies emerged. Must economic forms determine government forms?

  Decided to hold the money supply constant

During 2003, we began to stop worrying that inflation was a problem. Instead, we began to worry about deflation, a decline in the price level. Assume that the Fed decided to hold the money supply constant. What impact would deflation have on interest..

  Suppose the consumption function changes

Suppose the Consumption function changes to C=600 +.75(Y-T) - 30(r). 1)The new value of equilibrium output is =

  What interest rate must the investment earn

A teacher invests $5,000 at the end of every year for a 30-year career.If this teacher wants to have $1,000,000 in savings at retirement, what interest rate must the investment earn? (Show Work)

  About the perspectives of the business community

The political culture of the U.S. As well as public opinion in the U.S. Establishes a unique context in which business government relations take place. Discuss this statement and include comments about the perspectives of the business community.

  Companies use to market products to their customers

What are some strategies that companies use to market products to their customers? In addition, compare the strategies companies use to market their products to other businesses. Finally, compare the IT components and systems (e.g., security, payment..

  Political and economic markets different

In what ways are political and economic markets different?

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