A Company Is Planning to Manufacture a New Blender

question 13

Short Answer

A company is planning to manufacture a new blender.After conducting extensive market surveys,the research department estimates a weekly demand of 600 blenders at a price of $50 per blender and a weekly demand of 800 blenders at a price of $40 per blender.Assuming the demand equation is linear,use the research department's estimates to find the revenue equation in terms of the demand x.

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Definitions:

Treasury Stock

Shares that were issued and later reacquired by the company, reducing the amount of outstanding stock.

Par Common Stock

The nominal value assigned to share of common stock, as specified in the corporate charter, which represents the minimum price shares can be issued.

Cost Method

An accounting method used to value investments, where the investment is recorded at its acquisition cost without recognizing any changes in market value.

Stock Dividend

A company's distribution of extra shares to its shareholders, as an alternative to cash payouts.