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katrin [286]
3 years ago
6

Magnet Dot, a printer manufacturing company, set up a website to enable its customers to place orders online. It also set up an

intranet website to enable its employees to convey order and shipping information to the relevant departments within the firm. However, to ensure an effective and smooth exchange of information, Magnet Dot has to pay $100,000 annually for fast Internet access. In this scenario, the cost that Magnet Dot incurs is an example of _____.
Business
1 answer:
sineoko [7]3 years ago
3 0

Answer:

communication costs

Explanation:

Communication is critical for the success of a business. If the communication cost is high, then communication can become a hindrance to the success of business success. The costs associated with communication include fixed telephone, mobile phones cost, and internet access. Travel and venue cost that facilitates face-face meeting also adds to communication costs.

Businesses are embracing modern technology to cut down on their communication cost. Technology has increased the flow of internal and external communication. Magnet Dot is likely to grow as a business as customers can order for products over the internet.

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Vladimir79 [104]

Answer:

It should accept the special order at the price of $36 as the total marginal cost will be $28.5 (27 variable cost + 1.15 shipping cost).

Explanation:

Special orders are accepted only if marginal revenue increases the marginal cost. Marginal cost is the total cost incurred to fulfill any order.

In the given scenario, since the Company already has adequate capacity and it will not incur any additional fixed cost, therefore the order can be accepted by taking variable cost in to consideration.

Marginal Revenue               36

Less: Marginal Cost

Variable Cost                      (27)

Shipping Cost                   <u> (1.15)</u>

Total Profit from Order   <u> 7.85</u>

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Answer: The misappropriation theory

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According to the question, the given argument is basically describe about the misappropriation theory.

Therefore, The misappropriation theory is the correct answer.  

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