UMUC MBA course 620 Financial Decision Making

Base price of unleaded regular delivered in New York harbor (April 8, 2019) $2.008Added cost to Cal:Maryland state gasoline tax (Effective July 1, 2018) $0.353 Federal gasoline tax $0.184 Distribution & Delivery $0.042 Advertising and Marketing to ExxonMobil $0.042 Additives$0.020 Total additions $0.641 Total cost per gallon $2.649Answer question 1 below. Quantity Price 4000 2.749 3600 2.759 Average Average 3800 2.754 % change % change Elasticity of Demand -10.526% 0.363% -28.990 Elasticity: -2898.947 By how much did revenues increase or decrease as a result of the change in price?By how much did profits increase or decline?Gallons sold per day Price Revenue (price x gallons) Cost per Gallon Variable Cost (cost per unit x volume) Fixed cost per day Total Cost (Fixed + Variable) Daily Profit (revenue - all costs) 4000$2.749$10,996.00$2.649$10,596.00$250.00$10,846.00$150.00 3600$-

Answer question 2 below. Quantity Price 36004400Average Average 4000 0 % change % change Elasticity of DemandElasticity:By how much did revenues increase or decrease as a result of the change in price?By how much did profits increase or decline?Gallons sold per day Price Revenue (price x gallons) Cost per Gallon Variable Cost (cost per unit x volume) Fixed cost per day Total Cost (Fixed + Variable) Daily Profit (revenue - all costs) 36004400Answer question 3 below. Quantity Price 44004800Average Average 4600 0 % change % change Elasticity of DemandElasticity:By how much did revenues increase or decrease as a result of the change in price?By how much did profits increase or decline?Gallons sold per day Price Revenue (price x gallons) Cost per Gallon Variable Cost (cost per unit x volume) Fixed cost per day Total Cost (Fixed + Variable) Daily Profit (revenue - all costs) 44004800Profit Maximization Gallons sold per day Price Revenue (price x gallons) Cost per Gallon Variable Cost (cost per unit x volume) Fixed cost per day Total Cost (Fixed + Variable) Daily Profit (revenue - all costs) 3600$2.7594000$2.7494400$2.7394800$2.7295200$2.7195600$2.7096000$2.6996400$2.6896800$2.6797200$2.6697600$2.6598000$2.6498400$2.6398800$2.6299200$2.619

Answer question 5 below.Marginal Revenue Marginal Cost Gallons sold per day Price Revenue (price x gallons) Marginal revenueCost per gallon Variable Cost Fixed Cost Total Cost Marginal Cost 3,600 $2.759000$2.6493,601 $2.758975$2.6494,000 $2.7490004,0014,400 $2.7390004,4014,800 $2.7290004,8015,200 $2.7190005,201