1
answer
0
watching
71
views
28 Sep 2019
Sarasota produces a premium label apple juice to wholesalers ata current price of $8.50 per 4-litre container. Costs for a recentmonth, in which 100,000.00 4-litre containers were produced andsold were:
Variable Fixed Materials $ 23,000 $ 0 Labour 20,000 39,000 Factory overhead 11,000 88,000 Selling and administration 10,000
105,000
Total $
64,000
$
232,000
Sarasotaâ customers are loyal. Recently, a 10% increase inwholesale price resulted in only a 10% decrease in the number oflitres sold.
Calculate the price elasticity of demand
Elasticity $_______________
Sarasota produces a premium label apple juice to wholesalers ata current price of $8.50 per 4-litre container. Costs for a recentmonth, in which 100,000.00 4-litre containers were produced andsold were:
| Variable | Fixed | |||||
| Materials | $ | 23,000 | $ | 0 | ||
| Labour | 20,000 | 39,000 | ||||
| Factory overhead | 11,000 | 88,000 | ||||
| Selling and administration | 10,000 | 105,000 | ||||
| Total | $ | 64,000 | $ | 232,000 | ||
Sarasotaâ customers are loyal. Recently, a 10% increase inwholesale price resulted in only a 10% decrease in the number oflitres sold.
Calculate the price elasticity of demand
| Elasticity $_______________ |
Trinidad TremblayLv2
28 Sep 2019