Why are you starting a zoom here? I confused
Answer:
D. General Office Administrative Costs
Explanation:
A Profit Center
A profit center represents a business unit or department in an organisation that generates revenue, profits or losses.
A Direct Fixed Cost
A direct fixed cost represents a cost that is directly traceable to a product, a service or to a center. In this question, the consideration is to identify the option that does not represent a cost directly traceable or directly incurred by the profit center.
General Office Administrative Costs
In accounting, the rule of the thumb is that general office administrative costs are not directly attributable to the production of goods or services. This cost represents the costs incurred to carry out a business' day to day operations including building rent, office supplies and subscriptions among others. The right option is therefore, the General Office Administrative Costs. Put differently, it represents costs that the business will incur even without the profit center, department or unit.
The other options from are costs that are directly related to the profit center and should not be incurred if the profit center does not exist. For instance, the Manager's salary will not be incurred if there is no center and there will be no depreciation on center's equipment if the center does not exist in the first place.
Answer:
These are the answer choices for the question:
Students do not have good nutritional information.
Soda purchases represent a large fraction of students' budgets.
There are few other places to purchase soda on campus.
The price elasticity of demand for soda is equal to 1.
And this is the correct answer choice:
There are few other places to purchase soda on campus.
Explanation:
If vending machines raise the price of soda by two, by the still sell almost the same amount, this means that they have a monopoly over the selling of soda in campus, and that students continue to buy there because they do not have any other feasible alternatives.
This is the problem with monopolies: they can charge very high prices and still make a profit because they will always have demand, but this very act makes consumers worse off, and reduces general social welfare.
$30 is consumer surplus
I am assuming your typo is actually $33