Answer:
C: Prices and output would rise, and the equilibrium will change
Explanation:
,Answer: a. 9,450 units
Explanation:
You need to find the weighted average contribution margin for both products.
Product A
Weighted average contribution margin = Contribution margin * Units sold / Total units sold
= 34 * 7,600 / (7,600 + 2,400)
= $25.84
Product B
= 59 * 2,400 / 10,000
= $14.16
Breakeven point in units = Fixed costs/ (Weighted average contribution margin of both A and B)
= 378,000 / (25.84 + 14.16)
= 9,450 units
I think the answer is B because that doesn't seem very desirable
Answer:
False
Explanation:
Ordering costs are the costs incurred when materials are requested for. These components of this cost are:- 1)Clerical and administrative costs involved in purchasing and accounting for the goods ordered.
2)Cost of transportation
3)Retooling cost: This happens when the product is manufactured internally. Retooling means change of working tools.
4)Insurance while in transit.
5)Drivers' salaries and allowances
6)Loss of materials while in transit.
7)Taxes, custom duties and import duties.
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