Ask Question
BusinessBusiness
25 May, 18:01

WidgetCo wants to increase the total amount of money they make after expenses. They're unable to change their internal costs. Which factor can WedgetCo lower to drive higher volume and increase the money they make after expenses?

+3
Answers (1)
  1. 25 May, 18:25
    0
    Sale price

    Explanation:

    Depending on the price elasticity of demand (PED) of the products that WidgetCo sells, a decrease in the selling price of their products might increase the total units sold in a larger proportion, resulting in an increase in total revenue.

    PED refers to the proportional change in the quantity demanded for a product when the price changes by 1%.

    PED = % quantity demanded / % change in price

    If PED > 1, the demand is elastic. If PED < 1, the demand is inelastic. If PED = 1, unit demand.

    When a product's demand is elastic, a small change in the price will cause a larger change in the quantity demanded.

    If the PED of WidgetCo's products is elastic, then it can increase total revenue by lowering the sale price or their products.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “WidgetCo wants to increase the total amount of money they make after expenses. They're unable to change their internal costs. Which factor ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Rumpelstiltskin, an imp in a Grimm Brothers fairy tale, could spin straw into gold. We would call this a (n) a. capability. b. tangible resource. c. intangible resource d. useful skill.
Answers (2)
Which of the following would not be an adjustment to net income using the indirect method? An increase in accounts receivable. A decrease in a prepaid expense. A loss on equipment sold. An increase in accrued wages.
Answers (1)
Which one of the following is not necessary in order for a corporation to pay a cash dividend? a. Approval of stockholders b. Adequate cash c. Declaration of dividends by the board of directors d. Retained earnings
Answers (1)
Which of the following is the correct way to describe equilibrium in a market? a. At equilibrium, the "fairest" price for output is achieved. b. At equilibrium, demand equals supply. c. At equilibrium, quantity demanded equals quantity supplied. d.
Answers (1)
A contingency clause may require the sale of the buyers ___. a. rental property c. assests b. current home d. none of the above
Answers (1)
New Questions in Business
What happens when a bond becomes due? A The issuer will pay you back, minus interest. B The issuer will pay you back, plus interest. C You pay it back to the issuer, plus interest. D You pay it back to the issuer, minus interest.
Answers (2)
The emphasis of a marketing strategy for a continuous innovation concentrates on
Answers (1)
Daphne handles the payroll and performance appraisals of employees. Which business department does Daphne belong to?
Answers (2)
Bonita Industries acquired 21600 shares of its own common stock at $22 per share on February 5, 2020, and sold 10800 of these shares at $29 per share on August 9, 2021.
Answers (1)
Whistle Works manufacturers safety whistle keychains. They have the following information available to prepare their master budget: Operating Expenses Variable Operating Costs $.
Answers (1)
Home » Business » WidgetCo wants to increase the total amount of money they make after expenses. They're unable to change their internal costs. Which factor can WedgetCo lower to drive higher volume and increase the money they make after expenses?
Sign Up Forgot Password?