Answer:
a, b,d
Explanation:
because I did the lesson lol
The knowledge of cost behavior is important for managerial decision making as, having a thorough knowledge about this enables the manager to predict whether any costs will decrease or increase as business activity changes.
For instance, if a production line is nearing capacity, the relevant cost behavior would be to expect a large cost increase (to pay for an equipment expansion) if incremental demand increased by a small amount. Understanding cost behavior is an essential component of cost-volume-profit analysis.
Learn more about Cost Behavior here
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Answer:
Lenovo reduced the price of the model by 9% because it is what the calculations of price elasticity and cross price elasticity is telling the company to do.
A negative -12.64 price elasticity of demand means that the quantity demanded for the product falls more than the price rises. For this reason, the company found it necessary to reduce the price, in order to prevent a fall in demand.
A positive cross price elasticity of 9% means that the quantity demanded for this product will increase more than the reduction in price when compared to another product (likely a substitute, for example: a computer produced by another company). For this reason, Levono decided to lower the price, because the loss in revenue from the price reduction will be offset by the higher demand.
