The Trailer division of Baxter Bicycles makes bike trailers that
attach to bicycles and can carry children or cargo. The trailers
have a retail price of $105 each. Each trailer incurs $33 of
variable manufacturing costs. The Trailer division has capacity for
24,000 trailers per year and incurs fixed costs of $410,000 per
year.
Required:
1. Assume the Assembly division of Baxter Bicycles
wants to buy 5,100 trailers per year from the Trailer division. If
the Trailer division can sell all of the trailers it manufactures
to outside customers, what price should be used on transfers
between Baxter Bicycles's divisions?
2. Assume the Trailer division currently only
sells 10,000 Trailers to outside customers, and the Assembly
division wants to buy 5,100 trailers per year from the Trailer
division. What is the range of acceptable prices that could be used
on transfers between Baxter Bicycles's divisions?
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In: Accounting
You manage a farm that is looking to sell oranges in both
California and Oregon. The demand for oranges in California is
given by PCA = 25 - 0.5QCA and the
demand for oranges in Oregon is POR = 19 -
0.3QOR. The total cost of selling oranges is TC = 10 + Q
and the marginal cost is constant at MC = $1. If you cannot
differentiate between customers in California and Oregon, and you
are forced to charge the price that is optimal in California in
both Oregon and California, how much profit will you lose compared
to the profit you made in (2)? (Write answer
without the negative sign nor the
dollar sign.)
Please BOLD answer for a rating.
(2) You manage a farm that is looking to sell oranges in both
California and Oregon. The demand for oranges in California is
given by PCA = 25 - 0.5QCA and the
demand for oranges in Oregon is POR = 19 -
0.3QOR. The total cost of selling oranges is TC = 10 + Q
and the marginal cost is constant at MC = $1. If you can
differentiate between customers in California and Oregon, you
should charge a price of $312 in California and a price of $300 in
Oregon.
In: Economics
An online shopping website considers offering its customers a mail-in rebate program. By this way, it aims to differentiate between different groups of customers. After the completion of the purchase of a wireless router, consumers can mail a rebate form to receive $ back. In other words, the net price after the rebate is p*-a for those who are interested in the mail-in-rebate. The shopping website is a monopoly with no fixed cost. Its marginal cost is $30.
The Market consists of two different consumer groups whose demand functions are as follows:
The demand of the two groups are as follows;
P1=150-2q1
P2=100-5q2
Assuming that the consumers of group 1 are not interested in rebate forms,
a. What is the optimal rebate amount, which differentiates between different consumer groups?
b. Assume that the firm has enough information about its consumers to implement a perfect price discrimination strategy. Calculate the equilibrium price and quantities and the profit if the firm uses perfect price discrimination. (Do not derive the kinked market demand curve. Simple assume that the market demand is Q=95-07P)
In: Economics
An online shopping website considers offering its customers a mail-in rebate program. By this way, it aims to differentiate between different groups of customers. After the completion of the purchase of a wireless router, consumers can mail a rebate form to receive $ back. In other words, the net price after the rebate is p*-a for those who are interested in the mail-in-rebate. The shopping website is a monopoly with no fixed cost. Its marginal cost is $30.
The Market consists of two different consumer groups whose demand functions are as follows:
The demand of the two groups are as follows;
P1=150-2q1
P2=100-5q2
Assuming that the consumers of group 1 are not interested in rebate forms,
a. What is the optimal rebate amount, which differentiates between different consumer groups?
b. Assume that the firm has enough information about its consumers to implement a perfect price discrimination strategy. Calculate the equilibrium price and quantities and the profit if the firm uses perfect price discrimination. (Do not derive the kinked market demand curve. Simple assume that the market demand is Q=95-07P)
In: Economics
Chapter 6 Problem A consumer finds only three products, X, Y, and Z, are for sale. The amount of utility which their consumption will yield is shown in the table below. Assume that the prices of X, Y, and Z are $10, $2, and $8, respectively, and that the consumer has an income of $74 to spend. Product X (Price $10) Product Y (Price $2) Product Z (Price $8) Quantity Utility Marginal Utility per $ Quantity Utility Marginal Utility per $ Quantity Utility Marginal Utility per $ 1 42 1 14 1 32 2 82 2 26 2 60 3 118 3 36 3 84 4 148 4 44 4 100 5 170 5 50 5 110 6 182 6 54 6 116 7 182 7 56.4 7 120 (a) Complete the table by computing the marginal utility per dollar for successive units of X, Y, and Z to one or two decimal places. Remember the marginal utility per dollar would be calculated by first getting the marginal utility which is the change in utility as quantity increases and then dividing it by the price. When doing Quantity 1 you are going from 0 units to 1 unit. The utility for 0 units would be $0. (b) How many units of X, Y, and Z will the consumer buy when maximizing utility and spending all income? Show this result using the utility maximization formula. (Meaning they need to spend all of their income of $74) (c) Why would the consumer not be maximizing utility by purchasing 2 units of X, 4 units of Y, and 1 unit of Z?
In: Economics
3. A class of mutations in TCA cycle enzymes result in a “hypermethylator phenotype” in a variety of human tumors. Briefly describe this phenomenon, including the enzymes and associated mutations, and how these epigenetic alterations can contribute to tumorigenesis.
In: Biology
Explain why changes in Ca2+ levels are fundamental in short-term synaptic changes such as facilitation, synaptic depression, augmentation, and posttetanic potentiation. What can these short-term changes contribute to the study of learning and memory?
In: Biology
How does the mix of a credit portfolio impact on exposure and
diversification?
Discuss the impact that individual transactions can have on a credit portfolio and explain how a financial institution can contribute to portfolio credit exposure.
In: Finance
In Slater's rules, electrons in the same group as your electron of interest count for 0.35 units of shielding. Explain how an electron in the same subshell is able to contribute to shielding. Aren't they the same distance from the nucleus?
In: Chemistry
a. How do dislocation junctions contribute to strengthening? b. The addition of C to Fe greatly increases the room temperature strength of the alloy, but an equal amount of C added to Ag has little effect. Why?
In: Mechanical Engineering