Question
In: Math
Schneider's Bakery sells cakes. At a price of $20 per cake, it sells 500 cakes per...
Schneider's Bakery sells cakes. At a price of $20 per cake, it sells 500 cakes per week. At a price of $40, it sells 300 cakes per week.
(a) (2.5 points) Find a linear demand function ?(?)D(x) that models this situation.
(b) (2.5 points) Find the elasticity of demand.
(c) (2.5 points) Find ?(20)E(20) and ?(50)E(50), and explain what these numbers represent.
(d) (2.5 points) Using the linear demand function from part (a), find the price ?x that results in unit elasticity, and explain what this number represents. Also, determine the weekly revenue at this price.
Solutions
Expert Solution
I have used E with sign. Some also do not.
Both practices are followex.
Appreciate feedback.
milcah answered 2 years agoRelated Solutions
Cory’s Cakes is a local bakery. Price and cost information follows: Price per cake $ 17.00...
Cory’s Cakes is a local bakery. Price and cost information
follows:
Price per cake
$
17.00
Variable cost per cake
Ingredients
2.50
Direct labor
1.40
Overhead (box, etc.)
0.20
Fixed cost per month
$
3,850.00
Required:
Determine Cory’s break-even point in units and sales
dollars.
Determine the bakery’s margin of safety if it currently sells
450 cakes per month.
Determine the number of cakes that Cory must sell to generate
$2,000 in profit.
Cove’s Cakes is a local bakery. Price and cost information follows: Price per cake $ 14.21...
Cove’s Cakes is a local bakery. Price and cost information
follows:
Price per cake
$
14.21
Variable cost per cake
Ingredients
2.18
Direct labor
1.16
Overhead (box, etc.)
0.28
Fixed cost per month
$
4,130.10
Required:
1. Calculate Cove’s new break-even point under
each of the following independent scenarios:
a. Sales price increases by $1.70 per cake.
b. Fixed costs increase by $460 per month.
c. Variable costs decrease by $0.44 per
cake.
d. Sales price decreases by $0.20 per...
Cove’s Cakes is a local bakery. Price and cost information follows: Price per cake $ 13.71...
Cove’s Cakes is a local bakery. Price and cost information
follows:
Price per cake
$
13.71
Variable cost per cake
Ingredients
2.16
Direct labor
1.15
Overhead (box, etc.)
0.15
Fixed cost per month
$
4,715.00
Required:
1. Calculate Cove’s new break-even point under
each of the following independent scenarios:
a. Sales price increases by $1.80 per cake.
b. Fixed costs increase by $530 per month.
c. Variable costs decrease by $0.34 per
cake.
d. Sales price decreases by $0.60 per...
Cove’s Cakes is a local bakery. Price and cost information follows: Price per cake $ 14.81...
Cove’s Cakes is a local bakery. Price and cost information
follows:
Price per cake
$
14.81
Variable cost per cake
Ingredients
2.34
Direct labor
1.03
Overhead (box, etc.)
0.21
Fixed cost per month
$
4,042.80
Required:
1. Calculate Cove’s new break-even point under each of the
following independent scenarios: (Round your answer to the
nearest whole number.)
a. Sales price increases by $1.90 per cake.
b. Fixed costs increase by $525 per month.
c. Variable costs decrease by $0.35 per...
Cove’s Cakes is a local bakery. Price and cost information follows: Price per cake $ 14.11...
Cove’s Cakes is a local bakery. Price and cost information
follows:
Price per cake
$
14.11
Variable cost per cake
Ingredients
2.35
Direct labor
1.05
Overhead (box, etc.)
0.18
Fixed cost per month
$
4,212.00
Required:
1. Calculate Cove’s new break-even point under each of the
following independent scenarios: (Round your answer to the
nearest whole number.)
a. Sales price increases by $1.50 per cake.
b. Fixed costs increase by $460 per month.
c. Variable costs decrease by $0.43 per...
Cove’s Cakes is a local bakery. Price and cost information follows: Price per cake $ 14.01...
Cove’s Cakes is a local bakery. Price and cost information
follows:
Price per cake
$
14.01
Variable cost per cake
Ingredients
2.33
Direct labor
1.19
Overhead (box, etc.)
0.11
Fixed cost per month
$
3,010.20
Required:
1. Calculate Cove’s new break-even point under each of the
following independent scenarios: (Round your answer to the
nearest whole number.)
a. Sales price increases by $1.50 per cake.
Break Even Point _______ Cakes
b. Fixed costs increase by $485 per month.
Break Even...
Cove’s Cakes is a local bakery. Price and cost information follows: Price per cake $ 14.71...
Cove’s Cakes is a local bakery. Price and cost information
follows: Price per cake $ 14.71 Variable cost per cake Ingredients
2.22 Direct labor 1.10 Overhead (box, etc.) 0.21 Fixed cost per
month $ 4,024.80
Required: 1. Calculate Cove’s new break-even point under each of
the following independent scenarios: (Round your answer to the
nearest whole number.)
a. Sales price increases by $1.80 per cake.
Break-Even Point
cakes
b. Fixed costs increase by $480 per
month.
Break-Even Point
cakes
c....
Cove’s Cakes is a local bakery. Price and cost information follows: Price per cake $ 14.71...
Cove’s Cakes is a local bakery. Price and cost information
follows:
Price per cake
$
14.71
Variable cost per cake
Ingredients
2.31
Direct labor
1.01
Overhead (box, etc.)
0.13
Fixed cost per month
$
4,278.80
Required:
1. Calculate Cove’s new break-even point under
each of the following independent scenarios:
a. Sales price increases by $1.60 per cake.
b. Fixed costs increase by $545 per month.
c. Variable costs decrease by $0.42 per
cake.
d. Sales price decreases by $0.60 per...
Cove’s Cakes is a local bakery. Price and cost information follows: Price per cake $ 14.61...
Cove’s Cakes is a local bakery. Price and cost information
follows:
Price per cake
$
14.61
Variable cost per cake
Ingredients
2.22
Direct labor
1.15
Overhead (box, etc.)
0.27
Fixed cost per month
$
3,291.00
Required:
1. Determine Cove’s break-even point in units
and sales dollars.
2. Determine the bakery’s margin of safety if
it currently sells 370 cakes per month.
3. Determine the number of cakes that Cove must
sell to generate $1,900 in profit.
Cove’s Cakes is a local bakery. Price and cost information follows: Price per cake $ 14.01...
Cove’s Cakes is a local bakery. Price and cost information
follows:
Price per cake
$
14.01
Variable cost per cake
Ingredients
2.19
Direct labor
1.12
Overhead (box, etc.)
0.29
Fixed cost per month
$
3,955.80
Required:
1. Calculate Cove’s new break-even point under each of the
following independent scenarios: (Round your answer to the
nearest whole number.)
a. Sales price increases by $1.10 per cake.
b. Fixed costs increase by $450 per
month.
c. Variable costs decrease by $0.44 per...
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