Answer:
It is more profitable to maintain the price at $10
Explanation:
Giving the following information:
The souvenir sheets cost the postal service $1.15 each. St. Vincent has been selling these souvenir sheets for $10.00 each and ordinarily sells about 61,000 units. To test the market, the postal service recently priced a new souvenir sheet at $11.00 and sales dropped to 51,000 units.
We need to calculate the actual revenue and decide whether it is more convenient to increase the price or leave it as it is.
Actual revenue= 61,000 units* (10 - 1.15)= $539,850
New revenue= 51,000 units*(11 - 1.15)= $502,350
It is more profitable to maintain the price at $10
Answer:
C. It eliminates jobs that tend to be repetitious.
Explanation:
Outsourcing is usually engaged in business to beat down the cost of production, it is the act in which a particular company invite another company from outside to carry out some service for them on agreement however, this service is been carried out at home.
It should be noted that one of the benefit of outsourcing is that It eliminates jobs that tend to be repetitious.
The answer is C. If the future price of a good is expected to rise, that means consumers would want to buy more NOW before the price increases. This causes the immediate demand to rise.
Answer:
The correct answer is A and B
Explanation:
Law of increasing the opportunity cost is the principle or the concept which is defined as the company continue to increase the production of one good, the opportunity cost of producing the next unit will increase.
It is as to reallocate the resources in order to produce that one good which was better or best suited to produce the original good.
The law of opportunity cost occur when some of the resources are best suited for some tasks or products instead of others and it will lead to increase in production with increase in the opportunity cost too.
Answer:
15,351.00 unfavourable
Explanation:
<em>Material quantity variance occurs when the actual quantity used to achieved a given level of output is more or less than the standard quantity.</em>
<em>It is determined by the difference between the actual and standard quantity of material for the actual level of output multiplied by the the standard price</em>
gram
300 units should have used (300× 4.6) 1380
but did used <u>2,400</u>
1020
Standard price ×<u> 15.05</u>
Material quantity variance 1<u>5,351.00</u> unfavourable