Answer:
a.
<u>Differential analysis on whether to continue or discontinue Product Tango</u>
Continue Discontinue
Sales $195,200 $0
Less Variable Costs :
Cost of Goods Sold ($115,600) $0
Selling Expenses ($33,000) $0
Less Fixed Costs :
Fixed Costs ($58,300) ($58,300)
Net Income/ (Loss) ($12,300) ($58,300)
b
Continue with Product Tango. Because it brings a contribution towards the Fixed Costs helping to achieve a smaller loss margin.
Explanation:
From the differential analysis, Fixed costs will remain the same whether the product is discontinued or not. This is because they are centrally controlled. Only the variable costs would change.
The price elasticity of supply for a good is 3 if a 1% decrease in price leads to a 3% decrease in quantity supplied.
<h3><u>
Explanation:</u></h3>
The measure of the response that a supply for goods and services shows after the modification of prices refers to the Price elasticity. When the price of any goods or services increases there will be a rise in the supply of goods and services. When the prices of any goods or services decreases then the supply of those goods and services will also decrease.
Price elasticity also measures the demand that a product or services has based on the modification of the price. When the product tends to be affected by the price changes it is said to be elastic. When it is not responding to the prices of the product the n these are said to be inelastic. In the given example the price elasticity of the supply of a good is said to be 3% and if a 1% decrease in price leads to a 3% decrease in quantity supplied.
Answer: C. hope this help!!!!!
Both external and internal customers help in the profitability and growth of an organization in a direct or indirect manner.
An external customer is someone who decides to spend money with a company because they enjoy the product or service. A business would not be in business without the support of the customer. These people are the reasons the business is successful and profitable. An internal customer is anyone within the organization that uses the good or service.
