Assume you just graduated from a university with an MBA and were hired by a small American company generating 100% of its $20 million revenue from domestic sales. Your job as International Sales Director is quite simple: to make sure international sales generate as much revenue as domestic sales within five years.

Where do you start?

What are some of your first initiatives? Why?

1. Drawing on the influences (determinants) of price elasticity of demand, explaining whether the demand for petrol in Australia is elastic or inelastic. Illustrate the effect of price drop on the total revenue of a petrol station.

• Part 1: explain whether demand or petrol is elastic or inelastic by exploring the determinants of price elasticity of demand. Atleast 1 explain to explain determinats. Not necessary

Part 2: explain and illustrate the impact of price drop on total revenue of a petrol station.

For each of the following characteristics, say whether it describes a monopoly firm, a monopolistically competitive firm, both, or neither.

a. faces a downward-sloping demand curve

b. has marginal revenue less than price

c. faces the entry of new firms selling similar products

d. earns economic profit in the long run

e. equates marginal revenue and marginal cost

f. produces the socially efficient quantity of output

A bakery runs a Groupon campaign. $3 cost for $8 value 50/50 split with Groupon 70% of coupons redeemed 1,200 coupons sold Average ticket value: $11 Bakery’s gross margin: 45%

A. Calculate the revenue from the campaign

B. Calculate the restaurant expenses associated with the Groupon customers.

C. Assume that the campaign generated 75 new customers. Calculate the breakeven sales revenue for a new customer.

Marketing and Sales have a strong relation. To get more sale you have to develop good marketing strategies. If you have a company name Shahen Express that is working online using Website Domain www.shahenexpress.com. Which Web marketing strategies will be used in this website? How you increase the sales of the company and What will be the Revenue Model? Is Revenue Transition concept will used in the website? Justify your answer with suitable examples.

Sohanlal is a green peas seller in a perfectly competitive industry. He is not as efficient as other firms. A green peas packet brings an average revenue of Rs. 80, but his average cost is Rs. 100, which includes his average fixed cost of Rs. 50. His profit-maximizing output is 300 pockets.

Q.1 What is his marginal revenue and should he continue in business in the short run?

Defferal questions:

1) Were payment for any goods and/or services received in a prior period, before being earned, and shown on the balance sheet as unearned revenue? If yes, was some or all of that revenue earned during the current period?

2) Were any payments made in prior periods, for expense items not yet incurred, and shown on the balance sheet as prepaid expenses?If yes, was some or all of that expense incurred during the current period?

Case 19-1 The Terminator Trans Ocean Shipping (“Trans Ocean”) provides domestic and international transportation and logistics services to customers. The company contracts shipping vessels, trucks, and aircraft to provide regional, long-haul, and international shipments of customer goods. Trans Ocean has entered into the following contracts: In March 2019, Trans Ocean entered into a revenue contract with a customer, Asia Manufacturing (“Asia”), in which Trans Ocean would be the exclusive shipper of Asia’s products between Shanghai and Los Angeles. Trans Ocean’s contract with Asia is effective on July 1, 2019. Before signing the contract with Asia, Trans Ocean did not operate the ShanghaiLos Angeles route, and to satisfy the contract with Asia, in April 2019, Trans Ocean leases a cargo ship from Heavy Vessel Manufacturing (“Heavy”), which commences on July 1, 2019. Because the shipping route is new, on July 1, 2019,

(1) Trans Ocean has no other customers to deliver goods on the Shanghai-Los Angeles route and (2) because of operational costs, Trans Ocean does not have alternative uses for the leased cargo ship. Trans Ocean adopted ASC 842, Leases, on January 1, 2019. The following are relevant facts about Trans Ocean’s revenue contract with Asia, and Trans Ocean’s lease with Heavy. Trans Ocean’s Revenue Contract With Asia • The revenue contract’s stated term with Asia is for one year. • Asia can renew the contract annually for up to four additional years. Therefore, the revenue contract can extend to five full years. • Asia pays a significant up-front nonrefundable fee for the initial one-year term; the same amount is due at the beginning of every renewal period. • Asia can cancel at any time without incurring a penalty outside of forfeiting any up-front nonrefundable fees already paid or owed at the beginning of the initial contract term and any and each renewed period. • Although the contract is new, Trans Ocean and Asia have entered into similar arrangements with similar terms and historically, Asia has renewed for one or more years. • Trans Ocean appropriately concludes that (1) the revenue contract meets the scope of, and criteria in, ASC 606, Revenue From Contracts With Customers, and (2) the contract term for its revenue contract with Asia is one year. Trans Ocean’s Lease With Heavy • The contract between Trans Ocean and Heavy contains a lease under ASC 842. • Rental payments are at market and fixed each year. Case 19-1: The Terminator Page 2 Copyright © 2019 Deloitte Development LLC All Rights Reserved. • To mitigate risks, Trans Ocean negotiated the lease period and renewal options to mirror those of Trans Ocean’s revenue contract with Asia. As a result, the fixed, noncancelable term of the lease is one year, and Trans Ocean can renew annually for four additional years (i.e., up to five full years). Trans Ocean believes that since Asia can terminate the revenue contract after one year (even though Asia may need to ship products for longer than a year and has historically renewed under other similarly structured contracts), it is uncertain whether Asia will renew the revenue contract. Because of this uncertainty, Trans Ocean believes that the renewal options related to the lease are not reasonably certain at the commencement date of the lease. As a result, Trans Ocean concludes that the lease term for its lease contract with Heavy is also one year. Required:

2. What factors should Trans Ocean consider in supporting its conclusion related to the lease term? Additional Facts On December 1, 2019, Trans Ocean entered into a shipping contract with Eastern Manufacturing Company (“Eastern”) to ship Eastern’s products between Shanghai and Los Angeles. The contract with Eastern commences on January 1, 2020, and on the basis of Trans Ocean’s evaluation of its enforceable rights and obligations in the contract with Eastern, Trans Ocean concludes that term of the revenue contract with Eastern is for a period of two years. Further, Trans Ocean concludes that (1) because of its contract with Asia and Eastern, it would not be operationally feasible to deploy the leased cargo vessel on other routes; (2) the cargo vessel will have sufficient capacity to service both Asia and Eastern; and (3) the leased asset is needed for Trans Ocean to perform under its revenue contract with Eastern (because of economic reasons that would not allow Trans Ocean to use another vessel). Required: 3. Should Trans Ocean reassess the lease term of the cargo vessel? If so, why?

13. Which of the following statements is correct?
A. If the monopolist is earning a positive economic profit, it must be producing where price is greater than
average variable cost.
B. If the monopolist's marginal revenue is greater than its marginal cost, the monopolist can increase profit
by selling fewer units at a higher price per unit.
C. When a monopolist produces where price equals the minimum of average total cost, it earns a positive
economic profit.
D. If the monopolist is earning a positive economic profit, it must be producing where MR = MC.
E. If the monopolist's marginal revenue is greater than its marginal cost, the monopolist can increase profit
by selling more units at a lower price per unit.

14. Suppose when a monopolist produces 75 units its average revenue is $10 per unit, its marginal revenue is $5
per unit, its marginal cost is $6 per unit, and its average total cost is $5 per unit. What can we conclude about
this monopolist?
A. The monopolist is currently maximizing profits, and its total profits are $375.
B. The monopolist is currently maximizing profits, and its total profits are $300.
C. The monopolist is not currently maximizing profits; it should produce more units and charge a lower price
to maximize profits.
D. The monopolist is not currently maximizing profits; it should produce fewer units and charge a higher
price to maximize profits.

15. which of the following statements is (are) correct?
(x) Deadweight loss measures monopoly inefficiency.
(y) The deadweight loss associated with a monopoly occurs because the monopolist produces an output
level less than the socially optimal level.
(z) The deadweight loss that arises from a monopoly is a consequence of the fact that the monopoly price is
equal to both average revenue and marginal revenue.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (x) only