Answer:
A) 10,000=15.75 dollars per unit
15,000= 10.5 dollars per unit.
B) 10,000=1,260,000 in variable costs
15,000=1,875,000 in variable costs
Explanation:
In order to calculate the first one you just have to divide the fixed costs, which are operations and administrative charges on the production of the products, by the number of units made, which would be:
157,500/10,000= 15.75
157,500/15,000=10.5
And to calculate the difference between variable costing, you just have to multiply the cost of each unit by the number of units to be produced:
126x10,000=1,260,000
126x15,000=1,875,000
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Answer:
D. When a desirable product or service is scarce, its value increases.
Explanation:
Demand is the volume of a commodity or service that buyers are willing to purchase in the market at a given price. Supply refers to the quantity of service of a product that suppliers are willing to avail in the market for sale. The law of supply and demand illustrates the interactions between buyers and sellers.
As prices increase, sellers are willing the supply more, but buyers will want to buy fewer quantities. The opposite is also true. Products that provide a higher utility value will always attract high prices. If such products are scarce, their prices are bound to go even higher.
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