Answer: $5001
Explanation:
It should be noted that sellers always seek to maximize profit when selling a product, therefore a seller will only be induced to sell only when offered a price that is above the price that they want to sell the car.
Therefore, we have to consider the price that is being offered by the seller as the minimum price. There are five sellers that wants to sell the car at prices of $1000, $2000, $3000, $4000, and $5000. Therefore, to sell the car a price of $5001 would induce the five sellers to offer their cars for sale.
Answer:
Correct option C $123,300
Explanation:
The amount of the common fixed expense not traceable to the individual divisions = South Division's divisional segment margin + West Division's divisional segment margin - Corporation's net operating income
= $46,600 + $173,800 - $97,100
= $123,300
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