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Assignment Task - Complete case study questions from Managerial Economics and Organizational Architecture.

Analyzing Managerial Decisions: Framing Tuition plus Financial Aid

Ursinus College, in the year 2000 increased tuition by 17.6% plus tuition fees to $23,460. Subsequentlythe increase in fee, the college believes that the number of applicants has increased by 200 from the last year. The university president assumes that the applicant believes that the college needsto be better because its cost is higher than other colleges. In addition, universities such as the University of Notre Dame, Rice University,Bryn MawrCollege also the University of Richmond have increased tuition fees to match the competition of the universities, which has also increased the number of applications. On the other side, North Carolina Wesley College reduced tuition fees and tuition fees by 22% a decade ago; however, the decline in expenses only enticed a small number of candidates, so it was determined that tuition fee waiver was not good-looking to undergraduates(Al-Malkawi& Pillai, 2018).

Susan Hansen, director of the Admissions Office of the Eastern liberal arts college, suggested increasing tuition fees and reducing financial help to undergraduatesto upsurge enrollment. Susan expects the tuition fees to be increased and a reduction in financial support to solve the school's financial difficulties. The college registered 400 freshmen in last year, who individually paid $15,000 (later financial help) for a total of $6 million in effective tuition. Susan predicts an increase in demand by charging a $25,000 effective tuition fee; the college wants torecruit600 freshmen for a total of $15,000,000. As a counselor to the Oriental Colleges, I recommend further analysis of the advice of Admissions Officer Susan Hansen. Susan believes that data from rival universities indicates that the demand curve is tilted upwards, so demand increases with charge. When the price is high, we usually don't see independent buying more things unless they don't replace as they are viewing for or the quality of the replacement is lower(Lohmann, 2013).

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Analyzing Managerial Decisions: Rich Manufacturing

Cost-plus rating refers to an enterprise setting pricing by expandingthe average total price by a predetermined profit to achieve the desired profit. Many companies are pricing the supply contract cost plus to confirm thatthe risk of surge production budgetsis less likely(Rashid, 2014). Due to the pre-determined cost increase, Bhagat's decision to increase the worker's salary by 30% will not disturb the company's annual income.A potential drawbackwith cost-plus appraising is the probability of losing clients due to rising prices. Consumer loyalty may be affected as well as difficult to recover. Consumers will eventually look for alternatives that can accomplish the same roles as previous brands. Another potential hitchcan also be understood by the supplier. Some companies on another side of the agreement may have problems by cost-plus valuing because their bottommost line is now affected by the increase in labor.Yet, this is in their agreement and in mutual agreement. This can be a problem with those associated with Bhagat, as it may increase Bhagat's ability to benefit from the contract as well as compensate for labor costs (Serna, Cohen & Nguyen, 2017).

According to the contract provisions, Gina should question the value if the rise occurs in the mid of the bond or does not include labor rate details. The contract stipulates that Rich Manufacturing Firm will wage Bhagat's production charges, but the details are not stated. If the contract does not include a specific price increase for the labor force, Gina can question the price increase and because her company's profits are now at risk. Rich Manufacturing Firm may pay an extra $150,000 to $300,000 as labor costs increase(Yasarcan, 2018).

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