Question9
Atacertainicecreamparlor,customerscanchooseamongfivedifferenticecreamflavorsandcanchooseeitherasugarconeorawafflecone.Consideringbothicecreamflavorandconetype,howmanydistincttriple-scoopconeswiththreedifferenticecreamflavorsareavailable?
Question10
AfirmsellingManchesterUnitedpillowcasesfor$10currentlygeneratesanannualturnoverof$500,000.Variablecostsaverageat$4perunitandtotalannualfixedcostsare&100,000.Themarketingdirectorisconsideringapriceincreaseof10%.Giventhatthepriceelasticityoftheproductisbelievedtobe0.4,pleasecalculate:(Priceelasticity=%changeinquantitydemanded/%changeinprice)
A.x05Theoldsalesvolume(EXPRESSINUNITTERMS)
B.x05Thenewsalesvolume(EXPRESSInUNITTERMS)
C.x05Thenewrevenue(EXPRESSIN$TERMS)
D.x05Theexpectedchangeinprofitfollowingthepriceincrease(EXPRESSIn%TERMS)