CORRECT TEXT

Discuss whether the demand for OLI’s new business English course is elastic and explain how OLI can use this information in determining the product price.

Essay

Online Learning Inc. lOLI) is a privately-held company based in the IUC that specializes in providing online courses in English as a Second Language (ESL). OLI is trying to set up a new sales office in a foreign country. It needs a business license to operate in that country. The license normally lakes six months to obtain. An official of that country said that he could expedite the process for a fee of 300.

OLI estimates the new sales office can bring 300,000 incremental profit annually OLI has just launched a new online 40-houi course to help adult ESL learners master basic business English. The price of the new course is 500 per student, the variable cost is 300 per student, and the total fixed cost of the new course is 300.000 per year OLI spent 200.000 to develop the new course before launching it. There are many online course providers in the marketplace, and each has its own feature However, OLI’s highly qualified staff and good reputation have enabled it to charge a premium price compared to its major competitors. Recent market research indicates that if OLI raises the price of its new business English course by 10V the student enrollment would decrease by 5V A regional airlines company in Asia has approached OLI and offered to enroll 1.000 of its employees in the new course if OLI would agree to a special price of 350 per employee If OLI accepts this offer, an additional 10,000 onetime cost would be required to temporally expand its capacity to accommodate the new students.

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An accounting manage‘ is deciding which performance measurement tool would be most appropriate to compare firms within their company s industry given that the firms vary in size significantly.

Which one of the following analysis methods would be the most appropriate?

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Given the financial information shown below, what amounts would be shown for sales revenue and for gross prom, respectively in a common size income statement?

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Javier makes hand-looted learner dog collars. The materials cost $10 per collar and the collars are sold for $50 each. Javier sells me collars at a local farmer’s market mat charges S100 per month for space rental if Javier’s income tax rate is 30%, how many collars must Javier sell each year to earn $1,000 net income?

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Which one of the following statements with respect to ethics is correct?

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A corporation shows the following on its financial statements (in millions).

The corporation has a financial leverage ratio of

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Your organization is considering implementing an Enterprise Risk Management process. You expect to obtain many benefits from this process.

Which of the following is not an expected Benefit?

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On January 1, 2008 the exchange rate between the U S dollar (S) and Indian Rupee (Rs) was $t = Rs 39. 2676. On January 1, 2009 the rate was Rs 1 = $0,0205.

Based only on the relative currency appreciation or depreciation, which country’s exports would likely have increased?

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Marsalls Products Inc. manufactures and sells two products CD-ROMs and DVD’s. The latest forecast on me products and their costs tor the coming year is shown in the following table.

Note 1: Fixed manufacturing cost of Si.500 000 per year is allocated to products based on the number of machine hours required to produce the product at a rate of S3 per machine

hour

The Manufacturing Team leader just informed the CEO that a fire occurred at one of the manufacturing lines and that line would be unavailable for the next 12 months. The result is that mere will only be 400 000 machine Hours available The CEO requested the management team to revise the plan for the coming year based on the new constraint. The Marketing Team leader stated that in order to minimize customer complaints about the shortage, a minimum of 100,000 units of each product should be produced With the new information from the Manufacturing and Marketing teams what is the optimal product mix for the coming 12 months“ Assume Marsalls can sell allot its production.

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A market in which no organized physical exchange exists is referred as a(n)

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