Answer:
Option (A) is correct.
Explanation:
Total Cost of Manufacturing:
= Direct Material + Direct labor + Variable overhead + Fixed overhead
= $8,400 + $11,250 + $12,600 + $16,200
= $48,450
Variable Cost Per Unit = ($8,400 + 11,250 + 12,600) ÷ 10,000
= 32,250 ÷ 10,000
= 3.225
Offer from Outside Supplier = $2.85 Per Unit
Difference = 3.225 - 2.85
= $0.375 Per Unit
Total Difference = 0.375 x 10,000
= $3,750
The Increase in net Income from accepting the offer is $3,750.
Answer:
$4,800
Explanation:
At 100 units output
Fixed cost= $500
Total cost=$4,500
At 101 units output
Fixed cost=$500
Fixed cost remains constant during production process
Marginal cost= $300
Total cost(101 units)= TC(100 units) + marginal cost of 101 units
= $4,500+$300
TC(101 units)= $4,800
Tariff C
Taxes took the test before
Product positioning.
Product positioning is the place a product occupies in consumers' minds based on important attributes relative to competitive products
