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Table 1: Pepita Disco Performance, 2011 (UYU in millions) Units sold 100 million units Revenue 200 Variable costs Materials 30 Direct labor(manufacturing,sales) 40 Opearational costs(manufacturing,inventory,delivery)
Table 1: Pepita Disco Performance, 2011 (UYU in millions)
Units sold | 100 million units |
Revenue | 200 |
Variable costs | |
Materials | 30 |
Direct labor(manufacturing,sales) | 40 |
Opearational costs(manufacturing,inventory,delivery) | 30 |
Other variable costs | 20 |
Margin on Sales | 80 |
Fixed Costs | |
Marketing and advertising | 10 |
Research and development | 10 |
Other fixed costs(e.g head office) | 40 |
Net margin | 20 |
a.). Motivate its manufacturing staff and salespeople by paying them 10% more and, as a result, unit sales increased 10%?
a i.) Raise its price 10% with an elasticity of 1.7?
a ii.)Lower its price 10% with an elasticity of 1.7?
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