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?

Kiona co. set up a petty cash fund for payments of small amounts. the following transactions involving the petty cash fund occurred in may (the last month of the company's fiscal year). may 1 prepared a company check for $350 to establish the petty cash fund. 15 prepared a company check to replenish the fund for the following expenditures made since may 1. a. paid $109.20 for janitorial services. b. paid $89.15 for miscellaneous expenses. c. paid postage expenses of $60.90. d. paid $80.01 to the county gazette (the local newspaper) for an advertisement. e. counted $26.84 remaining in the petty cashbox. 16 prepared a company check for $200 to increase the fund to $550. 31 the petty cashier reports that $380.27 cash remains in the fund. a company check is drawn to replenish the fund for the following expenditures made since may 15. f. paid postage expenses of $59.10. g. reimbursed the office manager for business mileage, $47.05. h. paid $48.58 to deliver merchandise to a customer, terms fob destination. 31 the company decides that the may 16 increase in the fund was too large. it reduces the fund by $50, leaving a total of $500.