Suppose cook pluscook plus manufactures cast iron skillets. one model is a 10-inch skillet that sells for $ 26$26. cook pluscook plus projects sales of 725725 10-inch skillets per month. the production costs are $ 11$11 per skillet for direct materials, $ 4$4 per skillet for direct labor, and $ 3$3 per skillet for manufacturing overhead. cook pluscook plus has 6060 10-inch skillets in inventory at the beginning of july but wants to have an ending inventory equal to 2525% of the next month's sales. selling and administrative expenses for this product line are $ 1 comma 700$1,700 per month. cook pluscook plus is budgeted to produce 846846 skillets in july. compute the budgeted gross profit for july.

Recently, verizon wireless ran a pricing trial in order to estimate the elasticity of demand for its services. the manager selected three states that were representative of its entire service area and increased prices by 5 percent to customers in those areas. one week later, the number of customers enrolled in verizon's cellular plans declined 4 percent in those states, while enrollments in states where prices were not increased remained flat. the manager used this information to estimate the own-price elasticity of demand and, based on her findings, immediately increased prices in all market areas by 5 percent in an attempt to boost the company's 2016 annual revenues. one year later, the manager was perplexed because verizon's 2016 annual revenues were 10 percent lower than those in 2015"the price increase apparently led to a reduction in the company's revenues. did the manager make an error? yes - the one-week measures show demand is inelastic, so a price increase will decrease revenues. yes - the one-week measures show demand is elastic, so a price increase will reduce revenues. yes - cell phone elasticity is likely much larger in the long-run than the short-run. no - the cell phone market must have changed between 2011 and 2012 for this price increase to lower revenues.

Bonds often pay a coupon twice a year. for the valuation of bonds that make semiannual payments, the number of periods doubles, whereas the amount of cash flow decreases by half. using the values of cash flows and number of periods, the valuation model is adjusted accordingly. assume that a $1,000,000 par value, semiannual coupon us treasury note with three years to maturity has a coupon rate of 3%. the yield to maturity (ytm) of the bond is 7.70%. using this information and ignoring the other costs involved, calculate the value of the treasury note:

Arecession is defined as a period in which