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Question - Your firm spent $100 million developing a new drug. It has now been approved for sale, and each pill cost $1 to manufacture. Your market research suggests that the price elasticity of demand in the general public is -1.1.
Required -
a. What price do you charge the public?
b. What would happen to profits if you charged twice as much?
c. What role does the $100 million in development costs play in your pricing decision?
d. The Medicaid agency has made a take-it-or-leave-it offer of $2 per pill. Do you accept it? Why or why not?
If fully-franked dividend is $500, with individual personal tax being 35% and a corporate tax rate of 15%, then a person's net tax liability is
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Tomas and Saturn are partners who share income in the ratio of 3:1. Their capital balances are $40,000 and $60,000 respectively. Income Summary has a credit balance of $20,000. What is Saturn's capital balance after closing Income Summary to Capit..
Prepare a report for the president describing the factors that should be considered by Tangier in choosing between LIFO and FIFO.
Department S had no work in process at the beginning of the period. Calculate the total conversion costs for the period
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The centralized employee Travel Department of Howard Company has expenses of $47,600. The department has serviced a total of 2,800 travel reservations.
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