Phase 5 Ip

chassis 5 IP Jennifer Winfrey Colorado Technical University Online February 14, 2012 Microeconomics Phase 5 IP The graph below commemorates the need snub if the cookbook attach to sells the books in between $25 and $35. The phoner go forth be able to sell to a greater extent books at the $25 dollars footing, thence merchandising the books at $35 each. The consider curve looks more profitable with selling the books for $25 each. The elasticity is the quantity accept of a proficient or service to a variegate in its outlay. It will help the come with figure egress the percent release in quantity requirement in response to a percent change in price. To cypher the elasticity of affect the price of elastic demand equals the percentage change of demand divided by the percent change in price. To show how it looks the calculations ar below. 20000-25000/20000 5000/20000= 25 percent 35-25/ 35 -10/35= 29 percent 25/29= .86 With these calculations is shows the demand is inelastic, which means the price has very little relations to the demand. That means if the price goes up there will not be an effect of the demand of the cookbooks.

When a condescension is having a good return or is making money from the selling of cookbooks, it will be a good avocation but if they are not behold a good return is not worth losing money. In this situation the business is not doing great they are in the negative. So in my opinion I would shut the business down or find another supplier to make the cookbooks, if we can cut down on consti tute it would tidy up the business more pr! ofitable and be able to quiver about in business. To find out the total salute of that the company the immovable cost and the variable cost are added to make headway to determine the total cost. The fixed cost of the cookbook company would include technology, hire, postage, miscellaneous, inventory, equipment and overhead. When I calculated my fixed cost I had to add in the lost salary because I was receiving $50,000 a year...If you want to get a honest essay, order it on our website: BestEssayCheap.com

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