Answer:
Variable cost = $6,550
Explanation:
Variable cost is the cost incurred during the production process that changes with quantity of goods produced. For example labor, machine operating cost, and raw materials.
The other type of cost is variable cost that does not change with volume of production, but rather remains constant. For example rent, tax, and so on.
In the given instance the costs that are variable are cost of labor, cost of electricity to run printing presses, and cost of ink for paper.
Monthly mortgage and property tax are fixed cost that must be paid regardless of production volume.
variable cost = $5,500 + $800 + $250
Variable cost = $6,550
Answer:
3X + 5Y = 100
Explanation:
Given that a consumer has $ 100 to spend on two goods X and Y with prices $ 3 and $ 5 respectively, the equation that represents this distribution is the following:
3X + 5Y = 100
Thus, the consumer may consume different combinations of products, as long as the sum of both amounts is $100 as a final result. For instance:
3x20 + 5X8 = 100
60 + 40 = 100
3x5 + 5x17 = 100
15 + 85 = 100
Answer:
Sell the parts without any processing because the profit is higher ($20,000 vs $15,000)
Explanation:
they have two options:
- option A, sell the parts as they are and make $20,000 in profits (= $120,000 - $100,000).
- option B, further process the parts by spending $75,000 and sell them for $190,000, and make only $15,000 in profits (= $190,000 - $100,000 - $75,000).
The best option is A, to sell the parts without any processing because the profit is higher and they do not have to spend more money.
Answer:
Explanation:
The current price of the bond can be calculated by using the formula:
Answer: pricing
Explanation:
Pricing is the determination of an exchange price acceptable to both the buyer and the seller of a product.
When a seller is determining the price of a product, she considers cost of production, projected revenue, price of competitors, market condition and regulation.
A buyer would consider the quality of the product ,economic conditions and utility when deciding on the price to acquire a product.
The different types of pricing strategies are -
1. Penetration pricing - when prices are set very low to attract customers and to gain access into a market.
2. Premium pricing- when prices are set very high so that the product would appeal to certain consumers.
