Nile, the online bookseller, wants to increase its total revenue (TR). One strategy is to offer a 10% discount on every book it sells. Nile knows that its customers can be divided into two distinct groups according to their likely responses to the discount. The table below shows how the two groups respond to the discount: Group A Group B
(sales per week) (sales per week)

Volume of sales before the 10% discount 1.55 million 1.50 million
Volume of sales after the 10% discount 1.65 million 1.70 million

a. Using the midpoint method, calculate the price elasticities of demand for group A and group B.
b. Explain how the discount will affect total revenue from each group.
c. Suppose Nile. com knows which group each customer belongs to when he or she logs on and can choose whether or not to offer the 10% discount. If Nile. com wants to increase its total revenue, should discounts be offered to group A or to group B, to neither group, or to both groups?

Morgana company identifies three activities in its manufacturing process: machine setups, machining, and inspections. estimated annual overhead cost for each activity is $168,000, $315,900, an $97,200, respectively. the cost driver for each activity and the expected annual usage are number of setups 2,100, machine hours 24,300, and number of inspections 1,800. compute the overhead rate for each activity. machine setups $ per setup machining $ per machine hour inspections $ per inspection

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Alandowner and his neighbor purchased adjoining undeveloped lots. after both built homes on their respective lots, the landowner suggested to the neighbor that a common driveway be built where the two lots joined. the neighbor agreed. the landowner and the neighbor split the cost of constructing the driveway and entered into a written agreement to equally share the costs of its upkeep and maintenance. the agreement was recorded in the county recorder's office. two years later, the neighbor built a new driveway located entirely on his lot. the common driveway, which the landowner continued to use but which the neighbor no longer used, began to deteriorate. the landowner asked the neighbor for money to maintain the common driveway, but the neighbor refused to contribute. three years later, the neighbor conveyed his lot to a friend. the friend entered into possession and used only the driveway built by the neighbor. by this time, the common driveway had deteriorated badly and contained numerous potholes. the landowner asked the friend to pay half of what it would take to repair the common driveway. the friend refused. the landowner repaired the driveway and sued the friend for 50% of the cost of repairs. will the landowner prevail?