Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Economics Expert

Calculating Dell's Profit Increase

Suppose your firm manufactures 3 million hard drives per year specifically for Dell laptop computers. Suppose your average variable cost C=$20/unit, annualized cost of investment to build a hard drive factory I=$30 million, and the market price (bailout market price in the event Dell does not buy) Pm=$22/unit. If Dell agrees to purchase the 3 million hard drives at a price P*=$30.2/unit and subsequently renegotiates to only purchase for $26.8/unit, how much has Dell increased its own profits?

 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M928167

Have any Question? 


Related Questions in Business Economics

The production engineers at impact industries have derived

The production engineers at Impact Industries have derived the optimal combinations of labor and capital. These are the only two inputs used by Impact. The following chart shows the combinations of labor and capital for ...

Wellstone is a furniture manufacturer for the residential

Wellstone is a furniture manufacturer for the residential market that creates a variety of furniture pieces for the dining room, living room and bedroom. One of the company’s strategies has been to hold prices fixed at t ...

Abc corp has a bonus plan in place for its ceo linking her

ABC Corp. has a bonus plan in place for its CEO, linking her pay to annual earnings. ABC will pay her $180,000 if earnings are high, $90,000 if they are normal, and $0 if they are low. Each event is estimated to have equ ...

We study economics because we live on a planet that does

We study Economics because we live on a planet that does not provide us with enough resources to give everyone everything that they want. One of the power resources that is scarce is OIL that we use for home heating, for ...

We are deeply indebted to the young men and women in the

We are deeply indebted to the young men and women in the military who choose to serve and risk their lives for their country. All of us benefit from their sacrifices. Now, the question is: what motivates and incentivizes ...

1 this question is about using our model of rational choice

1. This question is about using our model of rational choice "backwards": to make inferences about the parameters in the model from observed choices.Alice always maximizes her utility subject to her budget constraint. Su ...

Irr calculation determine the irr on the following projects

(IRR calculation) Determine the IRR on the following projects: a. An initial outlay of $10,000 resulting in a free cash flow of $1,993 at the end of each year for the next 10 years b. An initial outlay of $10,000 resulti ...

Mcos you are a new physician setting up your own practice

MCOs You are a new physician setting up your own practice in a new town. You are researching the different MCOs offered in your area and are considering becoming a physician for one of these networks. You have also invit ...

Kat von d also known as katherine von drachenberg is an

Kat Von D, also known as Katherine von Drachenberg, is an American tattoo artist, model, musician, entrepreneur, and television personality. She is best known for her work as a tattoo artist on the TLC reality television ...

Given p 32 - q firms cost is tc q2 24if government

Given P= 32 - Q, Firm's cost is TC = Q^2 + 24 if government regulates the maximum price monopoly can charge at $23: 1) What is the monopoly’s regulated demand curve? monopoly’s regulated MR curve? Regraph the chart here ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate