Answer:
See below
Explanation:
With regards to the above, Green's variable overhead spending variance is computed as
= Flexible budget - Actual variable overhead.
Given that
Flexible budget in variable overhead = $176,000
Actual variable overhead = $100,000
Therefore,
Variable overhead spending variance
= $176,000 - $100,000
= $76,000 F
Answer:
It will purchase 3 cans
total consumer surplus 0.70
Explanation:
the market price is 0.55
It will purchase up to three cans. the fourth can he is willing to purchase at 0.40 but the price is 0.55 so it won't trade for that one.
<u>consumer surplus:</u>
difference between the amounts he was willing to pay for each unit and the market price:
first can 0.95 - 0.55 = 0.40
second can 0.80 - 0.55 = 0.25
third can 0.60 - 0.55 = 0.05
total consumer surplus 0.70
Answer:
D
Explanation:
The action being used here is the psychological pricing action.
It tends to appeal to the buying reasoning of the buyer. In this system of pricing, the prices of goods are intentionally placed using odd figures. This is because, it is believed that setting prices at these type of price ranges have a psychological effect on the consumer
The 0.01 cent difference would appeal to the psychological thinking of the consumer, thereby making him purchase the goods which in fact is same price when looked at technically
All in all, the pricing system is looking to make the buyer take a decision which will favor the seller as the fractional bits taken off the price would appear to the customer as if he’s purchasing at a lesser price which is technically not so
