Answer:
It is convenient to make the changes.
Explanation:
Giving the following information:
Selling price= $57.60 per unit.
Direct materials= $22
Direct labor= $24
Variable overhead= $11.00
Fixed overhead= $11.00.
New costs:
Direct material cost= 22*1.2= $26.4
Direct labor cost= 24*1.2= $28.8
<u>I suppose that the selling price will increase by $40.</u>
To determine whether the changes increase profit or not, we need to calculate the unitary contribution margin per unit for both options:
Contribution margin= selling price - unitary variable cost
Actual Contribution margin:
Contribution margin= 57.6 - (22 - 24 - 11)= 0.6
New contribution margin:
Contribution margin= 97.60 - (26.4 - 28.8 - 11)= $31.4
Consumer Surplus
This is the difference between what consumers are willing and able to pay and what they actually do pay. You may be willing to spend up to $100 on a new pair of shoes but if you find the perfect pair on sale for $20 you will buy those and there will be an $80 surplus.
Answer:
greenwashing
Explanation:
Greenwashing -
It is the process , where the company spends more amount of time and monetary value on marketing the company as environmentally friendly , rather than decreasing the impact on environment , is referred to as greenwashing.
It is basically a advertising stunt , in order to mislead the consumers , who buys the products just because the product is environmentally friendly.
Hence, from the question ,
the practice performed by the company is greenwashing.
Answer: Comparative
Explanation:
The comparative message is one of the type of business marketing strategy that helps in promoting the various types of products and the services in the market.
It basically helps in encouraging the improvement and also innovation in the given products to meet the desirable properties in an organization based on the consumer requirement in the market.
The comparative message compare the products in the market with the other competitors in terms of characteristics and features. Therefore, comparative is the correct answer.
Based on the information depreciation expense and amortization expense represent non-cash items.
Non-cash items has to do with expense that does not involve paying cash.
Depreciation expense and amortization expense are non cash item as no cash payment is involve.
Although this expense may be included in a company profit or loss account or net income but they do not have effect on a company cash flow.
Non cash item like depreciation expenses and amortization expense often have effect on a company overall net income.
Inconclusion depreciation expense and amortization expense represent non-cash items.
Learn more about non-cash item here:
<em>brainly.com/question/23158497</em>
