Answer:
$600
Explanation:
Normal selling price for baskets of dried fruits = $20
No. of baskets ordered = 150
At this price, the total selling revenue will be =$20*150 =$3000
Variable cost = $11*150 =$1650
Manufacturing overhead cost = $6*150 =$900
Income at a selling price of $20 = $3000-$(1650+900)=$450
For the special order
Selling price= $20
Total selling revenue =$16*150=$2400
Income at a selling price of $16 = $2400-$2550 = -$150 loss
The opportunity cost of this decision will be leaving a profit of $450 and obtaining a loss of $150
Total opportunity cost that must be considered in the incremental analysis for this decision =$450 +$150 =$600
Answer:
d. at least two different markets with different price elasticities of demand
Explanation:
The theory of microeconomics about price differentiation is based on the concept of elasticity of demand. Price elasticity of demand is a measure of the sensitivity of demand for a good or service to changes in the price of that product. We say that the price elasticity of demand is elastic when a percentage change in the price of this good has major impacts on demand. On the contrary, we say that the price elasticity of demand is inelastic when variations in the price of goods have little or no influence on demand.
For price discrimination to take place, the offeror must be able to sell the same product at different prices to at least two different groups. This will depend on the price elasticity of consumer demand for the good in each of the markets. Thus, if one group is less elastic than the other, the offeror will be able to sell the goods at different prices.
An example: air market. Consumers are often more price sensitive when traveling for tourism than for business. Thus, a higher price may be charged to executives. which has lower price elasticity of demand than tourists.
Answer:
b. $327
Explanation:
The computation of the fixed portion is shown below:
But before that variable maintenance expense per direct labor is
= ($610 - $585) ÷ (34000 hours - 31000 hours)
= $0.00833 per direct labor hour
Now
Total variable expense for 34,000 hours is
= $0.00833 × 34000
= $283
And, finally Fixed portion is
= $610 - $283
= $327
Menu design is determined by type of operation, the market, and meal period.
Darby's correct response is $0.045 per share.
Because we can calculate earnings per share by taking net income after taxes and then dividing it by the total number of common shares that are issued.
Income after taxes = <span>$2,000,000
shares = $44,000,000
Earnings per share = $2,000,000 / $44,000,000
=$2/$44
=$0.045</span>