After marketing the jackets for several years, the company is experiencing a fal

Question

After marketing the jackets for several years, the company is experiencing a falloff in demand due to an economic recession. A large retail outlet will make a bulk purchase of jackets if its label is sewn in and if an acceptable price can be worked out. What is the minimum acceptable price for this order? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)

After marketing the jackets for several years, the company is experiencing a falloff in demand due to an economic recession. A large retail outlet will make a bulk purchase of jackets if its label is sewn in and if an acceptable price can be worked out. What is the minimum acceptable price for this order? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Explanation / Answer

An economic recession is whengrowth slows, usually due to a fall-off in consumerdemand. As sales drop off, businesses stop expanding. Soon afterwards, they stop hiring new workers. By this time, the recession is usually underway. However, it doesn't affect most people until layoffs begin. As unemployment rises, and consumer purchases fall off even more, housing prices usually decline. Using that definition, most experts agreed the U.S. entered the most recent recession in 2007. However, unlike most recessions, demand for housing slowed down first. That's why most experts thought it was just the end of the housing bubble, not the start of a new recession.

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