Answer:
The correct answer is the third statement which says to maximize profits, the firm should produce less than 500 units.
Explanation:
The quantity of output produced is 500 units.
The marginal cost of producing 500 units is $1.50.
The minimum average variable cost is $1.
The price of the product is $1.25.
The firm will be at equilibrium when the price is equal to marginal cost. To maximize profits firm should decrease output to the extent that marginal cost comes to $1.25. At that point, the firm will earn profits as average variable cost is lower than the price.
Answer:
The correct option is;
a. Competitors's price + Fudge Factor
Explanation:
Product pricing consideration involve considering prices that are either high, medium range or low priced which make up the high end, middle, and low price pricing strategies
The high end pricing strategy involves finding out the amount the consumer is willing and has capacity to pay for and fixing the price at that range
The low price, pricing strategy is cost based with addition of an extra amount above the calculated cost
The medium pricing strategy is based on the competitive pricing, whereby the basis of pricing is the price of the competing product and the price of the product is the competitors price plus or minus a Fudge factor.
You get more done in the same amount of time compared to hand tools
Answer:
Requirement: <em>Determine the overhead rate for each activity "Materials handling, Machine setups, Quality inspections"</em>
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Materials handling overhead rate = Total cost / Cost driver volume
Materials handling overhead rate = $30,000 / 1,000
Materials handling overhead rate = $30
Machine setups overhead rate = Total cost / Cost driver volume
Machine setups overhead rate = $23,750 / 475
Machine setups overhead rate = $50
Quality inspections overhead rate = Total cost / Cost driver volume
Quality inspections overhead rate = $19,000 / 475
Quality inspections overhead rate = $40
Answer:
the rate of commission is 8%
Explanation:
The computation of the rate of commission is shown below:
Rate of commission is
= Commission received by the broker ÷ Sale value of the home
where,
The Commission received by the broker is $13,200
And, the sale value of the home is $165,000
Now put these values to the above formula
So, the rate of commission is
= $132,00 ÷ $165,000
= 8%
Hence, the rate of commission is 8%