A cart of groceries today costs about $132 and decreases 2.4% a year due to deflation. Create a model representing the relationship between the cost of groceries in dollars and time in years.
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- In 2012, every dollar (100¢) spent on grocery items was broken down as follows: Labor = 38.5¢ Farm value of food products = 19.5¢ Advertising and packaging = 12¢ Transportation = 7.5¢ Rent and insurance = 7¢ Taxes = 6¢ Depreciation and repairs = 5¢ Profit = 4.5¢Assume the transportation cost increases by 10% per year and the labor cost increases by 4% per year for five years, with all other costs remainingconstant. Determine the percent profit in the years 2012 and 2017, assuming the profit amount remains at 4.5¢.a. Assume that the cost of goods sold is 60% and that the monthly discount rate is 1%. Looking at the values in the exhibit above, you note that the average monthly revenue for a subscribed customer rises as the company sends more emails. In addition, the average monthly revenue for an unsubscribed customer also rises as the company sends more emails. What could explain both of these patterns? b. Calculate the 6-month LTV for each of the four tested email frequencies. Please show the spreadsheet with your calculations and be clear about any assumptions you are making. c. Based on this test, how many emails-per-week should the company be sending to its customers? This email frequency should apply to all customers; the company doesn't want to implement a different email frequency for different kinds of peopleItems purchased from a vendor cost $20 each, and the forecast for next year’s demand is 1,000 units. If it costs $5 every time an order is placed for more units and the storage cost is $4 per unit per year, a. What quantity should be ordered each time? b. What is the total ordering cost for a year? c. What is the total storage cost for a year?
- Fertilizer supply is explained by the following equation: ?? = 3,000? where ?? is the supply per year and ? is the price of fertilizer per ton. Demand for fertilizer is explained by: ?? = 500,000 - 20,000? where tons there is a lot of fertilizer demanded every year. The marginal external cost of $ 30 is associated with the production per ton of fertilizer due to pollution associated with fertilizer production. Answer the following questions and explain your answer by showing your work.Competitive market price is $21.74. Tons of fertilizer will be produced per year is 65,217.39. Is the market equilibrium efficient? Explain your answer.d. What is the efficient quantity and output?A person sells widgets. It costs 154 to buy the materials today. In a year, the sales of widgets will result in revenues of 899 and costs of 116. if the discount rate is 0.05, what is the npv?Suppose you sell8000 of the 3 pack of lenses in one year. your cost on each 3 pack is $29.95 and you sell them for $59.95 .If your operating expenses for the year total is $144,080,what are your net income and net profit margin percentage?
- Calculate the economic value of a loyal customer for a company given that the customer purchases, on an average, worth $43 per visit and comes three times a year. The company's gross profit margin is 35 per cent with a customer defection rate of 0.4.Derby phones is considering the introduction of a new model of headphones with the following price and cost characteristics. A. What number must Derby sell per month to break-even? B. What number must Derby sell to make an operating profit of $180,000 for the month?The average seling price of a new vehicle in the United States last year was $53,360. If the average price ten years earlier was $43,600, what was the annual increase/decrease in the selling price over this time period?
- The cost of a material was $2.00 per ounce 5 years ago. If prices have increased (inflated) at an average rate of 4% per year, what is the cost per ounce now? (a) $2.04 (b) $2.08 (c) $2.43 (d) $8.00?A Mobile shop sells 5000 mobiles in a year and the sales is relatively constant throughout the year. These mobiles are purchased for SR 150.00 each, and the lead time is two days. The holding cost per mobile per year is 6% of the unit cost and the ordering cost per order is SR 37.50. There are 250 working days per year. Calculate the following: (i) What is the annual holding cost? (ii) In minimizing the cost, how many orders would be made each year? (iii) Given the EOQ, what is the total annual inventory cost (including purchase cost)? (iv) What is the time between orders? (v) What is the ROP?Product A sells for $24 and has a contribution margin ratio of 25%. Sales are expected to decline by 10000 units over the next accounting period. What will be the loss in operating income?