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profit contribution analysis. Kathy's Bakery is a full -service bakery in Omaha, Nebraska. Kathy sells loaves of wheat bread for $3 a loaf. Of this amount, $1.50 is profit contribution. She is considering an attempt to differentiate her shop from several other competitors by only producing a special rice bread for customers allergic to wheat. Doing so would increase her unit cost by 50 cents per rice loaf. Current monthly profits are $400 on 800 units.A. Assuming average variable costs are constant at all output levels, what is Kathy's total cost function before the proposed change?
B. What will the total cost function be if rice loafs are produced?
C. Assume rice loaf remain stable at $3 . What percentage increase in sales would be necessary to maintain current profit levels?
Nosebleeds: P = 30 - 2Q With the stadium built, payers paid, and the other costs of playing baseball game incurred, the marginal cost of admitting an additional customer is essentially zero (MC=0). Everything else is "sunk" or fixed costs, TC = 10..
cisco's gross revenue(the percentage of revenue left after subtracting the cost of goods sold) was 70.1% of total revenue over a certain 4-year period. if the totall revenue was $5.4 billion for the first 2 years and $6.1 billion for the last 2 ye..
The company will make the move when its real estate sinking funds has a total value of $1.2 million. If the fund currently has $400,000 and the company adds $50,000 per year, how many years will it take for the account to reach the desired value.
The state highway route has a 30% chance of taking 4 hours, a 50% chance of taking 5 hours, and a 20% chance of taking 6 hours. All other factors being the same, people who place a higher valueon time.
Assume that the most efficient production technology available for making vitamin pills has the cost structure given in the following table. Note that output is measured as the number of bottles of vitamins produced per day and that costs include ..
Under patent protection, a firm has a monopoly in the production of a high-tech component. Market demand is estimated to be: P = 100 - 0.2Q. The firm's economic costs are given by: AC = MC = $60 per component.
Assume the following data for a country: total population, 500; population under 16 years of age or institutionalized, 120; not in labor force, 150; unemployed, 23; part-time workers looking for full-time jobs, 10. What is the official unemploymen..
For the Exchange variable, show the frequency and percent frequency for AMEX, NYSE, and OTC. Construct a bar graph similar to Figure 1.5 for the Exchange variable. d. Show the frequency distribution for the Gross Profit Margin using the five inter..
The best level of output for a monopolist in the short run is 500 units and is MR=MC. At this point Q=500, P= $11 and ATC= $8, so that the monopolist earns a profit of $3/per unit and a total profit of $1,500. Suppose that the AFC of the monopolis..
On the left tab under Publications, go to the Interactive Data Tables. Select National Income and Product Accounts. examine all four components of GDP (C, I, G, and Xn). Which of these four components of AD declined the most during the 2007 and 200..
The local economists estimate that Y is equal to $12,000 and Monopoly has set Pc at $10. If Monopoly's MC of serving another customer is equal to $1, what is the profit maximizing price for seasonal passes. Monopoly Rinks is the only ice skating fa..
were chosen at random, and the traffic lights of those intersections were modified. The numbers of minor accidents during a six-month period before and after the modifications were: NUMBER OF ACCIDENTS
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