The Demand for Copies of the Software Package Macrosoft Doors

question 42

Multiple Choice

The demand for copies of the software package Macrosoft Doors is given by Q = 10,000P^-2.The cost to produce Doors is C = 100,000 + 5Q.If Macrosoft practices cost plus pricing, what would be the profit-maximizing markup?

• A)6.67%
• B)100%
• C)14.29%
• D)33.33%
• E)3.23%

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Definitions:

Pre-acquisition Earnings

Earnings accumulated by a company prior to being acquired by another entity.

Retained Earnings

The portion of net income left over for a business after it has paid out dividends to its shareholders.

Acquisition Value

Acquisition Value is the total cost incurred to acquire an asset, including the purchase price and all related expenses.

Acquired Net Assets

The total assets purchased from a company during an acquisition minus the liabilities assumed in the process.