Futuristic was a newly setup firm in 2019. It is in the business of providing artwork. However, being in the business of standard art objects (non-essential items), it did not do well once it was hit by COVID-19. It has a selling price of ₹2,500 per piece and a variable cost of ₹1,000 per piece. It incurs an annual fixed cost of ₹30,00,000.
a. The manager of the business wishes to know- the number of art pieces they must sell to be at the break-even point the contribution margin
Following particulars has been shared for you. If fixed cost is Rs500000, selling price is Rs60 and Variable cost is Rs20
a. Calculate and describe -Breakeven point (5 Marks)
b. What could be the sales number to earn a profit of Rs 50000, at a Fixed Cost Rs 200000, Variable Cost Rs30 per unit, Selling Price Rs 60 per unit
Subway is selling good number of the veggie patty Burger on a daily basis. The production house offers a proposal to the management of getting the Veggie Patty manufactured by one of the suppler named Vishnu LLP. However, the management want to take the outsourcing decision also called as make or buy decision by evaluating the various important factors contributing to the decision
Discuss, the major considerations for evaluating the make or buy decisions
The equity shares of a firm in the current stock market has been traded at Rs60 per share. The price earnings ratio is 10 times. The Dividend payout ratio is 75%.
The total number of shares issued and outstanding as on date are 100000 equity shares of Rs10 each. Book value of each share is Rs40
Describe and Compute - Earnings per share, return on equity
Assume that you plan to take a housing loan with a tenor of 20 year. The loan has to be repaid in equal monthly installments. Considering that the loan amount is Rs. 50 lakhs and the interest rate on loan is 9% p.a., what would be the equated monthly installment (EMI)?
1. Company consumes two goods X and Y, her utility function is given by the equation
U= 60XY2.The current market price for X is 200 birr, while the market price for y is 100birr and her current Income is 10,000birr
A. Sketch a set of two Indifferent curves for Company in her consumption of X and Y
B. Write the expression for Company's budget constraint graph the budget constraint and find the slope
C. Determine the X, Y combination that maximizes her utility given her budget constraint
Calculate the Impact on Company's optimum consumption of X and Y If the price of X increase to 300birr.
A. Solve the following.
1. If price increases from 25 to 35 (P=30) and quantity demanded falls from 80 to 60 units (Q=70), what is the elasticity of demand?
2. If price decreases from 40 to 30 and quantity demanded rises from 15 to 30 units, what is the elasticity of demand?
3. If income rises 15 percent in a year and the demand for clothing by 20 percent, find the YED.
4. If 5 percent increase in the of iphone, the demand for Huawei phone increases by 20 percent, find the XED.
what are social and economic implications of the inadequate provision of social-rented housing in South African cities?
Consider a monopolist with the following demand functions for different
market segments
q1= 16 - 0.2P1
q2= 9 - 0.05P2
Where q1 and q2 are the quantities demanded in segments 1 and 2 respectively,
and p1, and p2 are the prices charged in the two segments.
The cost function is C = 50 + 20(q1 + q2)
b) Assume that these conditions are met. Calculate for each market segment
the equilibrium price, quantity and profit.
c) Show that the higher price is charged in the relatively more inelastic
segment of the market.
d) If the monopolist cannot discriminate and it has to charge one price what
price will it charge and what quantity would it produce? What will be the
profit under this scenario?
e) Describe the optimal two-part pricing strategy for the firm. How much
profit does the firm earn from this strategy?
The table shows units of output, value of output and number of people employed in an industry over three years, what can be concluded from the table?