subject
Business, 23.04.2020 16:19 EllaSue

A firm that sells software services has been piloting a new product and has records of 500 customers who have either bought the services or decided not to. The target value is the estimated profit from each sale (excluding sales costs). The global mean is $2128. However, the cost of the sales effort is not cheap—the company figures it comes to $2500 for each of the 500 customers (whether they buy or not).

If the company begins working witha new set of 1000 customer sample to sell the same service, similar to the 500 in the pilot study, will the estimated profit be twice as much or the same?

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 04:30
Galwaysc electronics makes two products. model a requires component a and component c. model b requires component b and component c. new versions of both models are released each year with updated versions of all components. all components are sourced overseas, and abc contracts annually for a quantity of each component before seeing that year’s demand. components are only assembled into finished products once demand for each model is known. for the coming year, alwaysc’s purchasing manner has proposed ordering 500,000 units of component a, 630,000 of component b, and 1,000,000 units of component c. her boss has asked why she has recommended purchasing so much of components a and b when alwaysc will not have enough of component c to fully use all of the inventory of a and b. what factors might the purchasing manager cite to explain her recommended order? explain your reasoning.
Answers: 3
question
Business, 22.06.2019 05:30
In most states, a licensee must provide a(n) of any existing agency relationships to all parties
Answers: 3
question
Business, 22.06.2019 17:40
Take it all away has a cost of equity of 11.11 percent, a pretax cost of debt of 5.36 percent, and a tax rate of 40 percent. the company's capital structure consists of 67 percent debt on a book value basis, but debt is 33 percent of the company's value on a market value basis. what is the company's wacc
Answers: 2
question
Business, 22.06.2019 18:50
Dominic is the founder of an innovative "impromptu catering" business that provides elegant, healthy party food and decorations on less than 24 hours' notice. the company has grown by over 150 percent in the past year. dominic credits some of the company's success to studying the strategies of prominent social entrepreneurs, such as wikipedia's jimmy wales. what can dominic do to exemplify the social entrepreneurship model?
Answers: 2
You know the right answer?
A firm that sells software services has been piloting a new product and has records of 500 customers...
Questions
question
History, 29.08.2019 14:00
Questions on the website: 13722361