The manager of a hardware store buys a popular small hammer for $2.25 per unit (assume...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The manager of a hardware store buys a popular small hammer for $2.25 per unit (assume there are no additional variable costs for this hammer). He has been selling the hammer for $5, and has calculated that the breakeven sales level for a $1 price decrease would be 46 units per month. If the $1 price decrease causes 62-unit increase in the monthly sales of the hammer, what will be the change in monthly profit resulting from this price decrease? 0-$46 $44 $28 -$64 0-$16 The manager of a hardware store buys a popular small hammer for $2.25 per unit (assume there are no additional variable costs for this hammer). He has been selling the hammer for $5, and has calculated that the breakeven sales level for a $1 price decrease would be 46 units per month. If the $1 price decrease causes 62-unit increase in the monthly sales of the hammer, what will be the change in monthly profit resulting from this price decrease? 0-$46 $44 $28 -$64 0-$16
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
The Sellinger Business School's Information Technology Service (ITS) is considering a new process to refurbish older computers in order to save on costs of buying new computers. The five steps to the...
-
MailMed Inc. (MMI), a pharmaceutical firm, provides discounted prescription drugs through direct mail. MMI has a small systems staff that designs and writes MMIs customized software. Until recently,...
-
Two points on a line have been measured by a CMM in the x-y plane. The point locations have the following coordinates: (12.257, 2.550) and (3.341, -10.294), where the units are inches and the...
-
Many retailers have installed point-of-sale (POS) systems to better manage their inventory and to save time and cut costs associated with ringing up customer sales. How should employees be trained to...
-
Use the following normal-form game to answer the questions below. a. Identify the one-shot Nash equilibrium.b. Suppose the players know this game will be repeated exactly three times. Can they...
-
Name three maintenance strategies? Explain briefly how they are implemented and mention any advantages and disadvantages each may have
-
The media often neglects to emphasize that police officers are often at-risk. For example, the FBI reported that while police officers were performing their duties in 2007, what is the estimated...
-
Car Armour sells car wash cleaners. Car Armour uses a perpetual inventory system and made purchases and sales of a particular product in 2 0 2 3 as follows: Jan. 1 Beginning inventory 1 3 0 units @ $...
-
dy 2. [8 Marks]. Determine dx for each of the following. (a) y = sinxtanx (b) y = tanx
-
In a startling turn of events that had crime fighters everywhere disappointed, Superman gave up his crime fighting career and moved to Lansing, Michigan, to start mass-producing red capes. Superman...
-
Company Profile brief profile of the company you are assigned to including a description of their products or services and the markets they compete. Summary of their stock performance in the last...
-
Jeri is a sole proprietor who has owned and operated a lighting design business for many years. She runs the business from her home, and in 2022, her business generated a net profit of $25,800. Jeri...
-
If the global pollution situation keeps worsening, one gallon of clean water can be more expensive than one gallon of petroleum. Scientists are looking for a way to synthesize water more efficiently....
-
Assume a simple Keynesian depression economy with a multiplier of 4 and an initial equilibrium income of $3,000. Saving and investment equal $400, and assume full employment income is $4,000. a. What...
-
Why do labor unions exist?
-
Labor union membership has declined in part due to a. a shift in workers from manufacturing to the service sector. b. deregulation in unionized industries. c. increasing global competition. d. all of...
-
If labor unions successfully negotiate wage increases for their members, a. the wages of nonunion workers increase as well. b. the wages in nonunion sectors decrease. c. employment likely falls in...
Study smarter with the SolutionInn App