Discuss the impact of Covid-19 on the profitability of the airline industry – general and low-cost carriers alike, due to its cost structure – cost classification and cost behaviour.
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Discuss the impact of Covid-19 on the profitability of the airline industry – general and low-cost carriers alike, due to its cost structure – cost classification and cost behaviour.
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- Discuss the impact of Covid-19 on the profitability of the airline industry – general and low-cost carriers alike, due to its cost structure – cost classification and cost behaviour.Please answer with details on how to do it. A small company manufactures a certain product. Variable costs are $20 per unit and fixed costs are $10,875. The price demand relationship for this product is P = -0.25D + 250, where P is the unit sales price of the product and D is the annual demand. Total cost = fixed cost + Variable cost, TC = CF + CV Revenue = Demand x Price, TR = D x P Profit = Total Revenue – Total Cost, P = TR – TC a) Develop the equations for the total cost and total revenue. Find the breakeven quantity c) How many units must be sold to maximize profit? What is the company’s maximum profit?The difference between TC and TVC falls with increase in output True / False
- South Plains Manufacturing Inc. must select a process for its new product, TT2, from among three different alternatives. RMC gather the following cost data. For what volume of demand would each process be desired? South Plains Manufacturing Cost Data Process A Process B Process C Fixed Cost $10,000 $20,000 $30,000 Variable Cost per unit $80 $95 $120 Please do fast ASAP ....fastFG Manufacturers wants to determine the effectiveness of their pricing decisions for their product Lylo. As a consultant, you have been asked to develop cost functions that will assist in arriving at the optimal price that will enable the company to maximize profits. During the year, you were provided with the following demand and costs functions for the product: P = 400 – 6Q; where P is the unit selling price and Q is quantity in thousands of units. TC = 8Q2 + 36Q + 150; where TC is total cost in thousands of dollars. Determine the optimal sales revenue. Calculate the maximum profit. Briefly outline two (2) factors to be considered by managementswhen pricing decisions are being made.A large company in the communication and publishing industry has quantified the relationship between the price of one of its products and the demand for this product as Price=160−0.02×Demand for an annual printing of this particular product. The fixed costs per year (i.e., per printing)=$47,000 and the variable cost per unit=$40. What is the maximum profit that can be achieved? What is the unit price at this point of optimal demand? Demand is not expected to be more than 4,000 units per year. The maximum profit that can be achieved is $? (Round to the nearest dollar.) The unit price at the point of optimal demand is $? per unit.
- Tennis Products Corporation produces three models of high-quality tennis rackets. The following table contains recent information on the sales, costs, and profitability of the three models: MODEL AVERAGE QUANTITY SOLD (UNITS/MONTH) CURRENT PRICE ($) TOTAL REVENUE ($) VARIABLE COST PER UNIT ($) CONTRIBUTION MARGIN PER UNIT ($) CONTRIBUTION MARGIN ($) * A 15,000 $30 $450,000 $15.00 $15 $225,000 B 5,000 $35 $175,000 $18.00 $17 $85,000 C 10,000 $45 $450,000 $20.00 $25 $250,000 Total $1,075,000 $560,000 *Contribution to fixed costs and profits. The company is considering lowering the price of Model A to $27 in an effort to increase the number of units sold. Based on the results of price changes that have been instituted in the past, Tennis Products’ chief economist estimates the arc price elasticity of demand to be –2.5. Furthermore, she estimates the arc cross elasticity of demand between Model A and Model B to be approximately 0.5 and between Model A and…ect of the utility commission's ruling on the profitability of the firm? 15 A company estimates that the demand for its product fluctuates with the price it charges. The demand function is q = 280,000 – 400p where q equals the number of units demanded and p equals the price in dollars. The total cost of producing q units of the product is estimated by the function C = 350,000 + 300q + 0.0015q? (a) Determine how many units q should be produçed in order to maximize annual profit. (b) What price should be charged? (c) What is the annual profit expected to equal? 16 Solve the previous exercise, using theIdentify and discuss briefly three (3) Cost Drivers that may impact the costs incurred in the airline industry in the Caribbean. Provide appropriate examples to support your response.
- Bartech, Inc. is a firm operating in a competitive market. The manager of Bartech forecasts product price to be $28 in 2021. Bartech's average variable cost function is estimated to be i AVC 10-0.003Q+0.00000050² Bartech expects to face fixed costs of $12,000 in 2021. How much profit (loss) does Bartech, Inc. expect to earn? Multiple Choice -$2,500 $96,000 $127,000 $156,000 $166,000 0A manufacturing company produces ACME Standard Widgets having a fixed cost of $50 and variable cost of $8 per unit. Sales history indicates that the sales price in dollars, P, varies with the demand, D, by the function: P = 200 - 0.1D Determine the following: Optimum demand for the widgets. Maximum profit that can be made. Determine the range of demands for which the company is profitable.A company produces and sells a consumer product and is able to control the demand for the product by varying the selling price. The approximate relationship between price and demand is p= 200-0.05D where p is the price per unit in dollars and D is the demand per month. The company is seeking to maximize its profit. The fixed cost is $15000 per month and the variable cost is $50 per unit. a. What is the number of units that should be produced and sold each month to maximize profit? b. What is the domain of profitable demand during a month? Show your spreadsheet.