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October 27, 2020 at 7:14 pm
question 2 Dear Sir,
I am a bit confused here. Price demand equation is P= a-bQ . Therefore the answer should be P=75-.0025Q and I have got it wrong. Could you please explain.
October 28, 2020 at 3:28 pm
Ya same here mitiksha.i also have same doubt.
October 28, 2020 at 3:35 pm
Ok I got it. This is my solution.
P = a – bq
So here I have to find first b= change in price/ change in qty 5/2000 = 0.0025
Next step is I have to find a so
P= a-bq 25 = a-(0.0025*20000) a= 75
So therefore answer is p=75-0.0025q. I hope u understand
John Moffat says
October 29, 2020 at 9:15 am
August 10, 2020 at 11:47 am
this question are really good
January 10, 2020 at 12:36 pm
I just want to understand something. there are three ways 1. 100/80 * 26 2. 120/100 * 26 3. 26*100/20
like on absorption costing question about selling price,i got it wrong coz i am always confused when it comes to the three ways. like the way the questions are asked,how best can l know which one to use.?
January 10, 2020 at 3:18 pm
Unless the question specifically says differently, a profit margin is the profit as a % of the sales. A mark-up is the profit as a % of the cost.
(It may help you to watch the Paper FA lectures on mark-ups and margins.)
January 13, 2020 at 11:54 am
November 8, 2020 at 5:31 pm
Thank you ! you explained it so well in that lecture
November 27, 2020 at 7:33 pm
i hope you are well. One Qs; i do not understand why you did 100/80*26 Can you please explain?
November 28, 2020 at 9:50 am
If the profit is 20% of the sales then the cost must be 80% of the sales. Therefore the sales must be the cost divided by 80% (which is the same as multiplying by 100/80).
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