A fully global organization might set up a ________ with a foreign company to create a new, independent company that produces a

Answer:

Both price and quantity rise

Explanation:

The reduction in soda prices boosts soda demand. As moviegoers typically enjoy popcorn along with their drinks, this spike in soda demand can lead to increased demand for popcorn, thereby raising both its price and quantity.

Answer:

The answer to the question is A.

Explanation:

To start, we differentiate between fixed and variable elements:

Fixed costs:

Advertising costs $20,000

Office costs $12,000

Other expenses $10,000

Variable costs:

Delivery costs $25,000

Commission costs $75,000

Other variable costs $20,000

Total amount $120,000

Next, we find the ratio of variable costs to total sales:

Total selling expense ratio = 120,000/2,500,000 = 0.048

For each of the variable costs:

Delivery costs = 25,000/120,000 = 0.20

Commission costs = 75,000/120,000 = 0.63

Other variable costs = 20,000/120,000 = 0.17

Lastly, for sales amounting to $3,400,000:

Total variable cost = 3,400,000 * 0.048 = $163,200

Commissions = 0.63 * 163,200 = $102,816

Answer:

a. -1.25

b. -1.25

Explanation:

Price elasticity measures how demand varies with price fluctuations.

The formula is:

= % change in Quantity / % change in Price

a. If the price moves from $1.00 to $1.50, the elasticity of demand will be:

% change in Quantity calculated using the midpoint method;

% Change in Price calculated with the midpoint formula

= -0.5/0.4

=-1.25

b. If the price decreases from $1.50 to $1.00, the elasticity of demand is:

% change in Quantity calculated using the midpoint formula;

% Change in Price calculated using the midpoint formula

= 0.5/-0.4

= -1.25

$8,400 The calculation for the annual financial benefit (loss) for the organization is detailed below: Particulars     Make                             Buy Direct material           $53,600 (8,000 units × $6.70) Direct labor               $64,800 (8,000 units × $8.10) Variable manufacturing overhead $8,800  (8,000 units × $1.10) Supervisor's salary $16,000  (8,000 units × $2) Fixed manufacturing overhead $2,000   Opportunity cost $16,000   Purchase cost                                                        $169,600  (8000 × $21.20) Total relevant cost       $161,200                              $169,600 Financial (loss) is = $161,200 - $169,600 = -$8,400 We simply compared the make and buy costs and found that purchasing incurs a higher cost than manufacturing, leading to an excess expense of $8,400 if the external supplier is chosen.

Answer: The average annual arithmetic return is 3.75%.

Explanation:

Year 1 = 10%

Year 2 = 15%

Year 3 = 15%

Year 4 = -25%

Total return = 15%

The arithmetic average annual return is calculated as (Year 1 return + Year 2 return + Year 3 return + Year 4 return) / 4 = 15% / 4 = 3.75%.