Answer:
B) $480,000
Explanation:
In this question we compare the operating income
In the first case,
The operating income is
= Contribution margin - fixed cost
where,
= (Selling price per unit - Variable cost per unit) × Expected sales units per year
= ($100 - $45) × 20,000 units
= $1,100,000
And, the fixed cost is $420,000
So, the operating income is
= $1,100,000 - $420,000
= $680,000
In the second case,
The operating income is
= Contribution margin - fixed cost
where,
= (Selling price per unit - Variable cost per unit) × Expected sales units per year
= ($100 - $45) × 20,000 units
= $1,100,000
And, the fixed cost is $420,000 + $200,000 = $620,000
So, the operating income is
= $1,100,000 - $620,000
= $480,000
Answer:
The market for lettuce would be impacted in three ways: labor supply would increase, meaning that lettuce producers can now hire more workers for a lower price.
This cheaper labor would likely increase supply, because more producers would try to enter the market to take advantage of the cheap workers.
Finally, the lower labor costs, and the higer supply, would reduce the price of lettuce, meaning that consumers will be able to buy more lettuce for less money.
For a firm that sells a prestige product, the relationship between price and quantity demanded is a <u>positive direct relationship</u>.
<h3>Why is the relationship between demand and price of prestige products direct?</h3>
The relationship between the demand and price of prestige products is direct because prestige products tend to sell better at high prices than at low prices.
And when the quantity demanded increases, the price tends to increase.
An example of a prestige product is an old car.
Thus, for a firm that sells a prestige product, the relationship between price and quantity demanded is a <u>positive direct relationship</u>.
Learn more about the demand for prestige products at brainly.com/question/6374886
In a situation when managers must analyze data from 500 hotels to determine when to discount rooms based on occupancy patterns they are facing with the following challenge: they need to analyze large amounts of information in the decision-making process in order to make the correct decision. The goal of the decision <span> is to gain competitive advantage.</span>
Answer:
Mall shoppers may not be representative of the target market population.
Explanation:
The key disadvantage of a mall intercept study is that it for the most part depends on nonprobability sampling for respondent choice, and along these lines the outcomes can't be utilized to make statistical judgments about any recognizable target population.
