Table 16-1
the Table Below Shows the Total Demand for Viewing

question 77

Multiple Choice

Table 16-1
The table below shows the total demand for viewing a rare penguin species at a local reserve.Ecotour companies have to build discreet viewing hides for tourists to view the penguins.Each ecotour company has to pay a fixed fee of $5000 for the right to build on the reserve.Assume that hides can be supplied to tourists at zero marginal cost.Tickets are sold to tourists to use the viewing hides. $\begin{array}{|c|c|}\hline \text { Quantity (Visits) } & \text { Price(\$ ticket) } \\\hline 0 & 48 \\\hline 2000 & 36 \\\hline 4000 & 24 \\\hline 6000 & 12 \\\hline 8000 & 8 \\\hline 10000 & 4 \\\hline 12000 & 0 \\\hline\end{array}$ $\begin{array}{|c|c|c|}\hline \text { Quantity (Visits) } & \text { Price(\$ ticket) } & \text { Revenue } \\\hline 0 & 12 & 0 \\\hline 1000 & 10 & 10 \mathrm{k} \\\hline 2000 & 8 & 16 \mathrm{k} \\\hline 3000 & 6 & 18 \mathrm{k} \\\hline 4000 & 4 & 16 \mathrm{k} \\\hline 5000 & 2 & 10 \mathrm{k} \\\hline 6000 & 0 & 0 \\\hline\end{array}$ Any firm can change tickets by steps of 500 only.Any 500 step of quantity is assumed to be sold at the midpoint of the two prices (eg.3500 tickets would be sold for $5)
-Refer to Table 16-1.If there is only one ecotourist company in this market, what ticket price would it charge for its hides to maximise its profit?

• A)$2
• B)$4
• C)$6
• D)$8

Analyze the financial impact of sales growth on fixed assets and required additions.

Understand the concept of sustainable growth and the requirement for external financing under different growth scenarios.

Calculate external financing needs based on sales growth, capacity utilization, and dividend payout ratios.

Determine the addition to retained earnings and total assets under specific growth conditions.

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Definitions:

Contrast Effect

occurs when the comparison of two or more objects or options significantly affects the perception and judgment of those items.

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution of data, aiming to provide an accurate description of the data's center.

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution of data.

Performance Evaluations

The process of assessing an employee's job performance, typically through formal review meetings and feedback mechanisms.