Cole has a cold. Although the brand-name drug is more expensive than the generic, he buys the brand-name one. Cole is familiar w
ith the brand-name drug and knows exactly what to expect whe
1 answer:
Answer:
<u>less risk</u>
Explanation:
Note: <u>The question appears to be incomplete. Another similar question has been attached for reference purpose and the answer provided herein is based upon that</u>.
It is common consumer behavior of sticking to a brand name despite another lower cost option providing the same base or constituent. Particularly in case of necessities, the law of demand i.e lower price higher demand fails as consumer would prefer being exposed to lesser risk no matter whatever be the cost.
In the given case, the consumer i.e Cole prefers going with a brand name as it provides him with a higher degree of assurance as the brand has a certain reputation attached to it which the other generic option lacks.
Secondly owing to his familiarity with the drug and it's past usage experience, he has developed brand loyalty apparently.
Thus, Cole's decision is attributable to <u>less risk.</u>
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Answer:
$9,400
Explanation:
We know,
predetermined overhead rate for machine hour =
Given,
Total overhead cost = $690,900
Total machine hours = 1,470
Putting the values into the formula, we can get
predetermined overhead rate for machine hour =
predetermined overhead rate for machine hour = $470
When we use a separate job, the overhead cost will be = predetermined overhead rate × total hours used by the job.
The amount of overhead should be applied to Job 65A if that job uses 20 machine hours during January = 20 hours × $470 = $9,400