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Alinara [238K]
3 years ago
8

​DeShawn's Detailing is a service that details cars at the​ customers' homes or places of work.​ DeShawn's cost for a basic deta

iling package is​ $40, and he charges​ $75 for this service. For a total price of​ $90, DeShawn will also detail the​ car's engine, a service that adds an additional​ $20 to the total cost of the package. Should DeShawn continue to offer the engine detailing​ service?
Business
1 answer:
tensa zangetsu [6.8K]3 years ago
8 0

Answer:

DeShawn not take offer engine detailing service

Explanation:

given data

cost = $40

charges = $75

total price = $90

additional charges = $20

to find out

Should DeShawn continue offer

solution

we know here De shawn marginal benefit is

marginal benefit = total price - charges

marginal benefit = 90 - 75

marginal benefit = $15

and

we have given additional charges is $20

so

we see marginal cost here less than the marginal revenue

so DeShawn not take offer engine detailing service

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Direct $\text{labor}$ cost                  90000                       60000

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2. Allocation on the basis of $\text{Direct labor costs}$:

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Direct Material                    125000                       90000

Direct labor cost                  90000                       60000

Manufacturing overhead    121500                       81000

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Total cost                             336500                       231000

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Cost per unit                          6730                           7700

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3 0
3 years ago
Read 2 more answers
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