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Unformatted text preview: d) They have the same gross margin because their inventory is identical (and it doesn’t matter than their sales are the same). e) They have the same gross margin because their sales and their inventory are identical. f) There is not enough information to determine the relationship between their gross margins. Q29 On average 500 students enroll as freshman each year to a college. On average 750 students graduate from the same college each year because the college also accepts sophomore, junior and senior transfers. In fact, on average, at any given time there are 625 students enrolled in the college who did not enroll as freshman (i.e., they are transfer students). On average, how long does a transfer student spend at the college? Assume all students who are admitted (either as freshman or as transfers) graduate. Q30 NetDvd is a web‐based DVD rental service. (Think NetFlix.) They offer one product – for $20 per month a customer can have up to 4 DVDs and essentially every customer always has 4 DVDs on his or her list. There are no late fees, so customers can keep movies as little or as long as they...
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- Spring '08