Answer:
The correct answer is none of the answer is correct as it is 3,100 units
Explanation:
Contribution margin = (Selling price per unit of product A - Variable cost per unit of product A) × Sales Mix + (Selling price per unit of product Z - Variable cost per unit of product Z) × Sales Mix
= ($75 - $35) × 4 + ($95 - $40) × 2
= $40 × 4 + $55 × 2
= $160 + $110
= $270
Compute break even sales as:
Break even sales = Fixed Cost / Contribution margin
$418,500 / $270
= 1,550 units
Computation of the number of units must be sell to break even:
Break even sales of product Z = Sales mix of product Z × Break even sales in total
= 2 × 1,550 units
= 3,100 units
Answer: b. second degree price discrimination
Since the school pays a different rate for the first million kilowatts consumed and a lower rate for any consumption over a million kilowatts, second degree price discrimination is at play.
When corporations or businesses sell the same product to different customers at different prices, with a view to maximize profits, price discrimination is said to occur.
There are three types of price discrimination -
First Degree price discrimination
Second Degree price discrimination
Third Degree price discrimination
First degree price discrimination occurs when the supplier sells the goods at a price the customer is willing to pay for the good.
Second Degree price discrimination occurs when the supplier establishes slabs for different quantities of goods sold. In this case, the supplier will offer a higher per unit cost for lower quantity of goods, and a lower per unit cost for a higher quantity of goods
Third degree price discrimination occurs when a firm is able to clearly divide its markets into segments. The products are positioned in each segment in a different manner.
All of the above all the above I've done it all
Answer:
d. None of the answers is correct
$17,000 increase
Explanation:
As per the given question the solution is provided below:-
For reaching the change in income if the special order is accepted we need to follow some steps which are as follows:-
Step 1
Variable manufacturing cost per unit = Variable manufacturing costs ÷ Sale units
= $240,000 ÷ 24,000
= $10
Step 2
Cost related with special order = Number of units × Variable manufacturing cost per unit
= 3,400 × $10
= $34,000
Step 3
Income from special order = Number of units × Selling price
= 3,400 × $15
= $51,000
Therefore the Change in income if special order is accepted = Income from special order- Cost related with special order
= $51,000 - $34,000
= $17,000 increase
d. None of the answers is correct the right answer is $17,000 increase.
To reach the change in income if special order is accepted we simply put the values into formula.
