Answer:
b. $10
Explanation:
The computation of the cost per shirt is shown below:
= (The cost of its factory, raw materials, and labor) ÷ (production level)
= $500,000 ÷ 50,000 shirts
= $10
Since we have to compute the cost per shirt before the increase in production level so we do not consider the increased production level and increase labor and raw material expense.
The answer to the question is (B) least preferred coworker scale.
Fiedler uses this for his contingency leadership model, which describes how the best leader is the ones who showcased the best behaviors to manage the circumstances that he or she finds themselves in.
The LPC (least-preferred coworker scale) <u>measures an individual’s leadership orientation, where high scores have high human relations orientation and low scorers have high task orientation.</u>
Answer:
The total cost at 9000 anchor is $473400
Explanation:
To come up with the cost equation used by the manager, we need to find the variable cost per unit.
The total cost at production level of 5300 is = 5300 * 54 = $286200
Out of the total costs, $18000 are fixed.
Thus, variable costs at production of 5300 is = 286200 - 18000 = $268200
The variable cost per unit is = 268200 / 5300 = $50.60
Let x be the number of anchors produced.
The cost equation is = 18000 + 50.60x
At 9000 anchors, the total cost will be,
Total cost = 18000 + 50.60 * (9000) = $473400
Answer:
$0.35
Explanation:
The computation of the price elasticity of demand using mid point formula is shown below:
= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of price)
So, Change in quantity demanded would be
= Q2 - Q1
= 40 - 30
= 10
Now, Average of quantity demanded
= (40 + 30) ÷ 2
= 35
Change in price
= P2 - P1
= $35 - $15
= $20
And, the average of price would be
= ($35 + $15) ÷ 2
= $25
Cross price elasticity of demand = (10 ÷ 35) ÷ ($20 ÷ $25)
= 0.28 ÷ $0.8
= $0.35
Answer:
Sunk costs.
Explanation:
Sunk costs refers to historical funds spent or incurred that cannot be recovered. Such costs are considered irrelevant during decision making which impacts on the business's future as they present no influence on present or future prospects.
Example
ABC investors decide to acquire land and develop residential houses at a location X. This decision is informed on the fact that the government had recently enacted a policy that led to an increase in demand for residential properties in that location. 6 months into construction of the residential houses, the government reviews and rescinds the policy. This leads to a sharp decline in property values in location X. ABC investors had already incurred 10 million dollars in the project. The 10 million dollars is considered sunk cost.
Sunk costs are the opposite of relevant costs because they can't be changed or recovered, as they've been spent or contracted in the past already. Hence, relevant cost are relevant for decision-making purposes but not sunk costs.
Hence, money that has been or will be paid regardless of the decision whether to proceed with the project is sunk costs.
