In addition to its regular license plate, the state of Texas sells personalized “vanity” licenses for...

In addition to its regular license plate, the state of Texas sells personalized “vanity” licenses for additional fees. When the State increased the price for such plates $25 to $75, the number of people who ordered vanity plates dropped from 150,000 to 60,000

(a) Calculate the price elasticity for the vanity plate. Is it elastic?

(b) Assume the main objective of Texan government is to maximize the revenue of the state, what is the optimum price to charge to the vanity plate? What is the total revenue at that price?

Expert Solution

Rahul Sunny answered 6 months ago

If a license plate consists of two letters followed by four digits, how many different licenses...

If a license plate consists of two letters followed by four digits, how many different licenses could be created having at least one letter or digit repeated.

A license plate in a certain state consists of 4 digits, not necessarily distinct, and 3...

A license plate in a certain state consists of 4 digits, not necessarily distinct, and 3 letters, also not necessarily distinct. (a) How many distinct license plates are possible if no restriction? (b) How many distinct license plates are possible if it must begin and terminate by a digit? (c) How many distinct license plates are possible if it must begin and terminate by a letter? (d) How many distinct license plates are possible if the three letters must appear...

The company A generates revenue primarily through the following means: Software license fees: typically licenses its...

The company A generates revenue primarily through the following means: Software license fees: typically licenses its software for periods of up to 60 months. Licensees are normally given the following payment options: Under the first payment option, the company collects the entire license fee at inception. This is categorized as a Paid-Up-Front (PUF) contract. Under a PUF arrangement, company A typically charges a one-time, paid-up- front fee for perpetual usage and the customer does not have the ability to cancel...

You are the CEO of PlatesRUs license plate manufacturing conglomerate. State regulators tell you that each...

You are the CEO of PlatesRUs license plate manufacturing conglomerate. State regulators tell you that each license plate must contain 2 letters (26 possible letters, A through Z) and 3 numbers (10 possible digits, 0 through 9). a. State regulators also tell you that the numbers and letters cannot repeat (E.g., AB123 is valid, but AA123 is not). How many different plates are possible? (Note: on a license plate, order matters. AB123 is different from BA123.) b. Regulators have stated...

Suppose each license plate in a certain state has one digit followed by four letters, followed...

Suppose each license plate in a certain state has one digit followed by four letters, followed by one digit. The letters f,o,s, and x and the digit 0 are not used. So there are 22 letters and 9 digits that are used. Assume that the letters and digits can be repeated. How many license plates can be generated using this format?

Texas State Concession currently sells hot dogs. During a typical month, the stand reports a profit...

Texas State Concession currently sells hot dogs. During a typical month, the stand reports a profit of $9,000 with sales of $50,000, fixed costs of $21,000, and variable costs of $0.64 per hot dog. Next year, the company plans to start selling nachos for $3 per unit. Nachos will have a variable cost of $0.72 and new equipment and personnel to produce nachos will increase monthly fixed costs by $8,808. Initial sales of nachos should total 5,000 units. Most of...

The Texas State Legislature is considered a part-time or amateur legislature because of its infrequent meeting...

The Texas State Legislature is considered a part-time or amateur legislature because of its infrequent meeting schedule of 140 days every other year. The part-time nature is meant to preserve the idea of a citizen legislature. Meeting biennially has advantages and disadvantages, but it is the system that we have become accustomed to. One of the drawbacks is that many professions do not afford the flexibility of time off to serve in the legislature. Think of your average store clerk,...

HTB Corp. sells its virtual reality headset for $750. In addition to the headset, a customer...

HTB Corp. sells its virtual reality headset for $750. In addition to the headset, a customer receives an activation code to gain free access to a specific game that currently sells for $62.50. The activation code expires six months from the date of the purchase of the headset, and the company expects that 80% of customers will use the activation code. HTB sells 100 headsets during the month of October of 2019.Requirements: 1.How many performance obligations are included in the...

In addition to its core business of bagels and coffee, Brueggers Bagles also sells hot chocolate...

In addition to its core business of bagels and coffee, Brueggers Bagles also sells hot chocolate for the noncoffee crowd. Customer research shows that the ideal temperature for hot chocolate is 142 F (“hot” but not “too hot”). A random sample of 24 cups of hot chocolate is taken at various times, and the temperature of each cup is measured using an ordinary kitchen thermometer that is accurate to the nearest whole degree. The sample mean is 141.375 with a...

X Company produces 65,300 units of its regular product each year and sells each one for...

X Company produces 65,300 units of its regular product each year and sells each one for $14.00. The following cost information is available: Total Per-Unit Direct materials $114,928 $1.76 Direct labor 99,909 1.53 Variable overhead 195,900 3.00 Fixed overhead 121,458 1.86 Variable selling 86,849 1.33 Fixed selling 81,625 1.25 Total $700,669 $10.73 A company has offered to buy 4,130 units for $13.48 each. Because the special order product is slightly different than the regular product, direct material costs will increase...

Question