Question

In: Economics

Fluidyne Corporation manufactures and sells water filters. The economic forecasting unit of the company has supplied...

Fluidyne Corporation manufactures and sells water filters. The economic forecasting unit of the company has supplied the following demand equation:   

QB=    2000 -     5PB +   2.5PC   +   0.82Y   + 0.6AB

          (1200)       (1.5)       (1.2)            (0.5)      (0.2)

Where,

QB=quantity sold

PB=price per unit

PC=average unit price of competitor’s product

Y=income per household

AB=advertising expenditure

           

            R2= 0.86

S.E.E=5

Standard error of coefficients in parentheses (1200) (1.5) (1.2,) (0.5) , ( 0.2)

Given, PB=$50,    PC=$45,      AB=$12,500      Y=$2,000

  1. Does each independent variable have a significant effect on the sales of Fluidyne water filters?
  2. Interpret the coefficient of variables that are significant?
  3. Interpret the coefficient of determination(R2)
  4. Determine the monthly quantity demanded sold (QB) for water filter?
  5. Is the quantity demanded for water filter (QB) sensitive to its own price?
  6. Is water filter a luxury or necessity?

Solutions

Expert Solution

Rahul Sunny answered 1 year ago
Next > < Previous

Related Solutions

Fluidyne Corporation manufactures and sells water filters. The economic forecasting unit of the company has supplied...
Fluidyne Corporation manufactures and sells water filters. The economic forecasting unit of the company has supplied the following demand equation:    QB=    2000 -     5PB +   2.5PC   +   0.82Y   + 0.6AB           (1200)       (1.5)       (1.2)            (0.5)      (0.2) Where, QB=quantity sold PB=price per unit PC=average unit price of competitor’s product Y=income per household AB=advertising expenditure                         R2= 0.86 S.E.E=5 Standard error of coefficients in parentheses (1200) (1.5) (1.2,) (0.5) , ( 0.2) Given, PB=$50,    PC=$45,      AB=$12,500      Y=$2,000 Does each independent...
Fluidyne Corporation manufactures and sells water filters. The economic forecasting unit of the company has supplied...
Fluidyne Corporation manufactures and sells water filters. The economic forecasting unit of the company has supplied the following demand equation QB=    2000 -     5PB +   2.5PC   +   0.82Y   + 0.6AB           (1200)       (1.5)       (1.2)            (0.5)      (0.2) Where, QB=quantity sold PB=price per unit PC=average unit price of competitor’s product Y=income per household AB=advertising expenditure                         R2= 0.86 S.E.E=5 Standard error of coefficients in parentheses (1200) (1.5) (1.2,) (0.5) , ( 0.2) Given, PB=$50,    PC=$45,      AB=$12,500      Y=$2,000 Does each independent variable...
Fluidyne Corporation manufactures and sells water filters. The economic forecasting unit of the company has supplied...
Fluidyne Corporation manufactures and sells water filters. The economic forecasting unit of the company has supplied the following demand equation:                                      Points: 5 QB=    2000 -     5PB +   2.5PC   +   0.82Y   + 0.6AB           (1200)       (1.5)       (1.2)            (0.5)      (0.2) Where, QB=quantity sold PB=price per unit PC=average unit price of competitor’s product Y=income per household AB=advertising expenditure                         R2= 0.86 S.E.E=5 Standard error of coefficients in parentheses (1200) (1.5) (1.2,) (0.5) , ( 0.2) Given, PB=$50,    PC=$45,      AB=$12,500      Y=$2,000 Does each...
Thomas Ltd., a manufacturing firm, manufactures frames for the Kona Bicycle company. The company has supplied...
Thomas Ltd., a manufacturing firm, manufactures frames for the Kona Bicycle company. The company has supplied information from its accounting records for the last 12 months. No. of Factory Month Frames Overhead Jan          5,000 $      9,000 Feb          6,000        10,800 Mar          4,400          8,600 Apr          5,800          9,600 May          4,800          9,100 Jun          5,300          9,400 Jul          4,500          7,900 Aug          7,000        13,000 Sep          5,500        10,800 Oct          5,600...
A manufacturing company produces water filters for home refrigerators. The process has typically produced some defective...
A manufacturing company produces water filters for home refrigerators. The process has typically produced some defective liters. A random sample of 300 liters yielded 12 defects. Construct and interpret a 90% confidence interval for the true proportion of defective water liters.
Flannigan Company manufactures and sells a single product that sells for $500 per unit; variable costs...
Flannigan Company manufactures and sells a single product that sells for $500 per unit; variable costs are $270. Annual fixed costs are $943,000. Current sales volume is $4,250,000. Compute the contribution margin per unit.
Halla Corporation produces and sells bottled water. The bottled water produced by the company is sold...
Halla Corporation produces and sells bottled water. The bottled water produced by the company is sold for 500 won per bottle, and the variable cost of producing and selling a bottle of bottled water is 300 won. Meanwhile, the fixed cost incurred in facility investment for the production and sale of the bottled water is 10 million won. Halla Corp. uses 40 million won in debt with an interest rate of 10 percent. Answer the following question. 1. Halla Corporation's...
Mark is a senior executive of a Canadian company, Canpure, that manufactures and sells water purification...
Mark is a senior executive of a Canadian company, Canpure, that manufactures and sells water purification systems. The company is hoping to expand into the Far East and has identified Star Enterprise in Vietnam as a promising first overseas buyer. Mark wants to ensure that he negotiates a workable contract that provides his company with all the protection he needs. Jon is the representative of Star Enterprise, and he knows that he needs expert advice before he embarks on serious...
Darwin Company manufactures only one product that it sells for $200 per unit. The company uses...
Darwin Company manufactures only one product that it sells for $200 per unit. The company uses plantwide overhead cost allocation based on the number of units produced. It provided the following estimates at the beginning of the year: Number of units produced 50,000 Total fixed manufacturing overhead costs $ 1,000,000 Variable manufacturing overhead per unit produced $ 12 During the year, the company had no beginning inventories of any kind and no ending raw materials or work in process inventories....
Hixson Company manufactures and sells one product for $34 per unit. The company maintains no beginning...
Hixson Company manufactures and sells one product for $34 per unit. The company maintains no beginning or ending inventories and its relevant range of production is 20,000 units to 30,000 units. When Hixson produces and sells 25,000 units, its unit costs are as follows: Amount Per Unit Direct materials $ 8.00 Direct labor $ 5.00 Variable manufacturing overhead $ 1.00 Fixed manufacturing overhead $ 6.00 Fixed selling expense $ 3.50 Fixed administrative expense $ 2.50 Sales commissions $ 4.00 Variable...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT