Answer:
The relevant cost of the 150 kilograms of the raw material when deciding whether to proceed with the special project: $979.
Explanation:
We do not use the original cost $2,236 because it is sunk cost.
We do not use market value because Otool Inc. does not either incur this cost nor sacrifice any benefit from not buying at market price.
The relevant cost of these raw material should be the benefit sacrificing from not selling the raw material, instead using it in the project; calculated as:
Selling price x Amount sold - Cost of delivery = 7.1 x 150 - 86 = $979.
Thus, the answer is $979.
Marginal utility is the <u>"change in total utility obtained by consuming one more unit of a good".</u>
Marginal utility evaluates the additional satisfaction a customer earns from consuming extra units of products or services. The idea of marginal utility is utilized by economists to decide the amount of a thing buyers are happy to buy. Positive peripheral utility happens when the utilization of an extra thing builds the total utility, while negative marginal utility occurs when the utilization of an extra thing diminishes the total utility.
Answer:
(B) Unity of direction
Explanation:
The principal of unity of direction is one of the 14 administrative principles developed by Henri Fayol. It is a concept found in administrative management theory. The principle provides that there should be only one leader and one plan for a series of activities seeking the accomplishment of the same objective
In some cases, supply curves are vertical, which means that for any price from 0 up to infinity, the quantity will stay the same.
This is very true for supply of an authentic painting in auctions, where there may only be 1 single painting, and people state the highest price they are willing to pay for the painting. Regardless of the price, there will only be 1 authentic painting for that price.
Hope this helps! :)
