Economics Answers

Your company Apollo is second in the manufacturing industry. The market leader has introduced an innovative product which is expected to wipe out market share for rovers (one of Apollo’s key products) which currently bring in a quarter of revenue and are responsible for a third of expenditures. Revenue forecast and budget expense revision is necessary.

What impact will the market leader’s actions have on your revenue forecast and expense budget:

If total original revenue assumptions were forecast at $700,000 and total expense assumptions added to $1,000,000?
What would the impact on financial performance be in dollars?

1. What are the two types of information available to complete the budget? Describe the benefits and disadvantages of them and give an example of each.

2. Identify four factors of management intention in regard to the cash flow budget.

1. Which budget is the GST amount transferred to:

For cash payment?
At the end of the period?

2. What is the closing accounts receivable amount? How is it?

3. Which budget is this transferred to?

You present the financials at the annual general meeting.

Separately list three groups of stakeholders you expect to be at this event.
How should each group be treated/ what would you expect from them?

You are responsible for the manufacturing budget preparation. What other forecast or budget/s affects the raw materials budget and in what way? How would a growth in the sales forecast affect the raw materials budget? What will this growth mean to the budgeted statement of financial performance and what should be considered in terms of the capacity of the production department and costs across all departments?

1.suppose the monthly income of an individual increases from Rs 20,000 to Rs 25,000 which increase his demand for clothes from 40 units to 60 units. Calculate the income elasticity of demand.
2.Quantity demanded for tea has increased from 300 to 400 units with an increase in the price of the coffee powder from Rs 25 to Rs 35. Calculate the cross elasticity of demand between tea and coffee.

Share markets all over the world often increase or decrease together. Why do you think it is the case? What does a rise in the stock market indicate to you about the level of current and expected growth in the world economy?

Why share markets around the world often increase or decrease together?

1.There is a fruit seller who has 30 Kgs of apples to be sold and he wants to fix a price so that all the apples are sold. There are three customers in the market and their individual demand functions are given below:

D1=25-.05P
D2=20-.025P
D3=15-.075P
Where D is the demand and P is the price

Determine
Market demand equation for the fruit seller
Price at which he can sell all the apples
Individual demands of each of the three customers

2. A) Determine the market equilibrium price if the demand and supply function is given as:
D = 12p + 8
S = 14p – 4

Where D= demand
S=supply
p= price

B) Determine the equilibrium quantity if price is the same as above
D = 4p – 4q
S = 8q – 4p
Where D= demand S=supply p=price q=quantity