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Gobi Inc. has sales of $40,000,000. The contribution margin is $0% and the fixed costs are $3,000,000. The variable costs per unit is $12. The company is considering two different strategies for increasing their profits:
1. Spend $2,000,000 in advertising; the results is expected to increase the company's sales by 25%
2. Reduce the price by 20%; the price demand elasticity is -3.0
Which of the two strategies will generate the highest overall profits? Shall all calculations.
There are many more sole proprietorhips than corporations or partnerships. Why are there so many sole proprietorships Why is the revenue of the average sole proprietorship less than that of the typical corporation
You are supporting a proposal decision as the manager of the systems and software engineering organization. A monthly budget of estimated labor costs is needed to evaluate the lifecycle funding profile for a technical option
Many airline routes worldwide are served by only one airline (a monopoly). Within the U.S., these are often from a small or mid-sized city to a major carrier hub and frequently operated by a regional carrier under contract to the larger airline.
College enrollments increased at the same time that average tuition rose dramatically. Does this contradict the law of downward-sloping demand?
Calculate the incremental profit that south park would earn by customizing its instruments and marketing them directly to end users.
Given the increase in government expenditures and the marginal propensity to consume, how would yoou find the change in equilibrium GDP.
You have been tasked by your boss to forecast what hours of work through your workers would be following a proposed increase. you have had a flexible policy of workers selecting their hours
In the long run, inflationary andrecessionary gaps are self-correcting because, eventually. nominalwages rise and fall in order to close an inflationary or arecessionary gap thegovernment applies the right combination of fiscal and monetarypolicies t..
Whether programs with offensive features can appeal to the squeamish
Describe the law of demand. Why does a demand curve slope downward? What are the determinants of demand? What happens to the demand curve when each of these determinants changes?
List three strategies that can be used by firms to enhance profits in an environment of extreme price competition.
Lenders and borrowers are all so nervous that the huge planned increase in the money supply ,refrred to as 'quantitative easing' , may have much smaller stimulating effect than it would have in normal circumstances.This strategy is not without ris..
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