Answer:
The answer is b. Up to $4 million.
Explanation:
It is critical to recognize that $3 million already spent on developing the product is the sunk cost, which is irrelevant cost that should not be included in the budget further spend for the new product.
As the new product is expected to generate a revenues of $4 million, the further cost should be spent on the new product development should not be exceeded the $4 million.
Thus, the answer is b. Up to $4 million is the correct choice.
As we use much more of a product, we experience a diminishing marginal utility.
<u>Explanation:
</u>
The Law of Marginal Benefit Declining says that somehow the marginal use of each extra unit declining rises as consumption. The limited utility is generated as the utility shift is absorbed by a supplementary unit. Utility is an economic principle used to describe pleasure or satisfaction.
For example, a person may purchase a certain brand of chocolate for a little while. Soon, they may buy too little and choose another type of chocolate or buy cookies alternatively, because the fulfilment they initially received from chocolate is declining.
Answer:
is this question
you may go to growong your business
Answer:
Explanation:
Cost of inventory = Purchase cost + Transportation cost - Purchase return - Purchase discount
Purchase cost = 23,400
Transportation cost = 690
Purcahse return = 1300
Purchase discount = (23400 - 1300)*3% = 663
Cost of inventory = 23,400 +690-1300-663 = 22,127
