Point Elasticity and Arc Elasticity

Please show the work in answering the below questions. Thank you. 1. B. B. Lean's deluxe garment bag sales recovered from 4,800 units to 6,000 units following a price reduction from $140 to $130 per unit. Calculate B. B. Lean's arc price elasticity of demand for this product. 2. Calculate point price elasticity of demand for this product. 3. Assuming the same arc price elasticity of demand calculated in Part A, determine the further price reduction necessary for B. B. Lean to gain a volume of 10,000 units.

Interest rate problem

a) Given the following data, calculate the real interest rate for years 2, 3, and 4. (Assume that each CPI number tells us the piece level at the end of each year.) Year CPI Nominal Interest Rate Real Interest Rate 1 100 --------- -------- 2 110 15% ___________ 3 120 13% ___________ 4 115 8% ___________ b) If you lent $200 to a friend at the... click for more

Please include graphs

In problem 4, Sue's surfboard buys a second plant and the total quantity of each quantity of labor increases by 50%. The total fixed cost of operating each plant is $200.00 a week. The wage rate is $100.00 a week. a. Set out the average total cost curve when Sue's surfboards operates two plants. b. Draw the long-run average cost curve. c. Over what output ranges is it efficient to operate one plant? (SEE ATTACHMENT)

Evaluate two competing product proposals, and prepare a 6-10 slide Powerpoint presentation

Some notes/clarifications to assist in doing the evaluation/analysis portion of the assignment: You may do the analysis using paper and pencil, but use of Excel would prove beneficial. You may want to set up a schedule in which column A is the Description of the specific cash flow being considered, column B is year 0 (proposal introduction, i.e. "start-up"), columns C through G are the analysis years 1 through 5, and column H is year 6 (proposal completion, i.e. "shut-down"). Column A should identify each of the elements that must be analyzed when considering the proposal's cash flows. Be sure to list each inflow and outflow. Sales Revenue: Estimated annual revenue is given for ye... click for more

Predicted Profits

Predicted Profits Details: Con Agra's 2000 income statement showed the following, (in millions) Net Sales - $25,386 Costs of goods sold - 21,206 Selling, administrative & general purpose expenses - 2,888 Interest expense - 303 Income before income tax and non-recurring charges - 989 Suppose the cost of goods sold is the only variable cost; selling, administrative, general, and interest expenses are fixed with respect to sales. Assume that Con Agra had a 10% increase in sales in 2001 and that there was no change in costs except for increases associated with the higher volume of sales. Compute the predicted 2001 operating profit for Con Agra and the percentage increase ... click for more