All categories

3 years ago

Sales volume plays a large role in determining per unit costs in the cost-plus pricing approach.

1 answer:

5 0

That statement is true.
In the cost-plus pricing approach, you add up all the cost needed for the product (material, direct labor, and overhead) and then calculate it with mark-up percentage in order to determine the price that you should set for your product.
Since cost per unit is determined by total products/total cost, sales volume played <span>a large role in determining per unit costs</span>

You might be interested in

Consider a two-firm oligopoly facing a market inverse demand curve of P = 100 – 2(q1 + q2), where q1 is the output of Firm 1 and

pickupchik [31]

Answer:

option (2) q1 = 16; q2 = 12

Explanation:

Given:

P = 100 - 2(q1 + q2)

here,

q1 is the output of Firm 1 and q2 is the output of Firm 2

Firm 1's marginal cost = $12

Firm 2's marginal cost = $20

Now,

Profit maximising level of output is attained where the marginal revenue equals the marginal cost

Thus,

for firm 1,

Total revenue, TR = P×Q

TR = (100 - 2q1 - 2q2) × q1

TR = 100q1 - 2(q1)² - 2(q1)(q2)

also,

MR = $\frac{\delta TR}{\delta Q}$

thus,

MR = 100 - 4q1 - 2q2

MC = $12

now

MR = MC

100 - 4q1 - 2q2 = 12

88 = 4q1 + 2q2

q2 = 44 - 2q1 ............... (1)

also,

for firm 2, we have

TR = (100 - 2q1 - 2q2) × q2

TR = 100q2 - 2(q1)(q2) - 2(q2)²

and,

$MR = \frac{\delta TR}{\delta Q}$

MR = 100 - 2q1 - 4q2

and

MC = $20

Now,

MR = MC

100 - 2q1 - 4q2 = 20

80 - 4q2 = 2q1

40 - 2q2 = q1 .....................(2)

Now,

substituting the value of q2 from (1), we get

q1 = 40 - 2(44 - 2q1)

q1 = 40 - 88 + 4q1

3q1 = 48

q1 = 16 units

substituting the value of q1 in equation (1) , we get

q2 = 44 - 2 × 16

q2 = 12 units

Therefore,

The correct answer is option (2) q1 = 16; q2 = 12

4 0

3 years ago

Which of the following is not a principal dimension of a servicescape?

MArishka [77]

Answer:

C) facility location

Explanation:

There are three components or principle of servicescape that are applied for the study as a measure for satisfaction that involves the condition related to the ambient, spatial layout & functionality, and the symbol, sign & artifacts

But do not include the facility location

Therefore the option C is selected as it does not involed in the service scape

6 0

4 years ago

Which is true? Group of answer choices Typically, only highly skilled statisticians perform trend and root cause analysis. Ultim

frosja888 [35]

Answer: Both B and C.

Explanation:

From the options that are given in the question, the options that are correct are that customers prefer that incidents be prevented and also without accurate data captured by service desk analysts, problem management is not possible.

The option that only highly skilled statisticians perform trend and root cause analysis is false.

3 0

3 years ago

A company which uses austenitic nickel chromium ions to manufacture resistance heating wire is considering a new annealing drawi

makkiz [27]

Answer:

Annual deposit= $99,722.29

Explanation:

Giving the following information:

Future value (FV)= $1,750,000

Number of years (n)= 10

Interest rate (i)= 12%

<u>To calculate the annual deposit, we need to use the following formula:</u>

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (1,750,000*0.12) / [(1.12^10) - 1]

A= $99,722.29

4 0

3 years ago

Henway Inc has a clause in its employment contract that identifies the state law that will apply to any disputes that arise unde

Gekata [30.6K]

Answer:

correct answer is a. forum selection clause

Explanation:

solution

the correct answer is forum selection clause because as it suggests you forum selection

forum selection allows the party to choose the forum or the specific way to deal with the dispute between the two parties

so here organization Henway has chosen state law as that the way to deal with the dispute

so that correct answer is forum selection clause

7 0

3 years ago