Answer and Explanation:
I will go through each and every option explaining the reasons and what option would be the best:
The (a) part says 'difference in wages will eventually disappear since a haircut is a homogeneous good' - This is not true because even though it is an homogeneous product, some customers do have a strong preference for barbers who are not going bald. Therefore, they know their worth and they would want to capitalize on that and get paid just a bit more than bald barbers.
The (b) part says 'barbershops that hire barbers with hair will be able to charge a higher price for a haircut to those consumers who have a strong preference for barbers with hair'. - If the barbershop charges higher price for barbers that have hair then the customers will prefer bald barbers as the questions mentions that there is high competition and since it is an homogeneous, customers would be willing to save money and get their haircut from some other barber.
The (c) part says 'barbershops that hire bald barbers will always be much more profitable' - Not necessarily. The reason is that some customers have a strong preference for barbers who are not bald and therefore, that would help barbershops who have barbers with hair to be a bit more profitable as some additional customers would want their services.
The (d) part says 'barbershops that hire barbers with hair will always be much more profitable' - This is the best option and the reason for it is because some customers have a strong preference for barbers with hair and that would help the barbershop to earn more. They would have the customers who already indifferent to whoever cuts their hair and in addition to that, they would also have the customers who have their preference.
Hence the answer is D.
Answer:
Option D is the correct answer to this question.
Explanation:
An increase in the average family size in recent years has created a demand for bigger cars. Since Roger Woods proposed that Crimson must introduce some variety in its product line to maintain overall profit margins, option D is the only option that suggests a need for adding a new variety to its product line (Bigger Cars), since there is a demand for it already arising from the increase in the average family size.
Answer:
Jury of Executive Opinion
Explanation:
Jury of Executive Opinion method of sales forecasting employs the views of to management in various section. They are are experienced and have good knowledge of the market factors and are able to predict the expected sales. They are able to forecast sales figures through estimates and previous experiences. All internal and external factors are taken into account. Their judgements are pooled together and averaged in drawing the sales forecast of Kryptos Inc.
Answer:
1) $141,000
2) $198,000
3) $ 61,000
4) $122,000
Explanation:
1) we sum ($80,000+$42,000+$19,000)= $141,00,0 according to the cost’s theory
2) we sum all amounts (80,000+42,000+19,000+22,000+35,00)= 198,000 we sum all amounts because those are the cost that the company incurred In the period.
3) Conversion cost we obtain summing direct labor+ manufacturing overhead ( 42,000+19,000)= $61,000
4) Prime costs we obtain summing direct materiales+ direct labor ( 42,000+80,000)= $122,000
