Answer:
$0.40 ; $1 and $71.43%
Explanation:
The computation is shown below:
Excess cost is
= Unit cost - Salvage Value
= $1 - $0.60
= $0.40
The shortage cost is
= Selling value - unit cost
= $2 - $1
= $1
And, the optimal service level is
= Shortage cost ÷ (Shortage cost + excess cost)
= $1 ÷ $1.60
= 71.43%
Basically we applied the above formulas
Answer: Law of demand
Explanation:
The law of demand is defined as when the quantity an the price of the products and the services are increased then the demand the the similar products get decreased as it is inversely proportional with each other.
The other factors or the conditional are become equal or constant and this is also known as the elastic demand. The law of demand is refers to the relationship between price and the quantity of products in the market.
Therefore, Law of demand is the correct answer.
Answer:
The correct answer is (b) Dis-economies of scope
Explanation:
Solution
Dis-economics of scope : This refers to a situation when the average cost of production is greater from the shared production of services than the average costs from the preceding independent production of the services.
The vendor here in this case is experiencing Dis-economics of scope.
Answer:
Total factory overhead rate = $200,000
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Explanation:
Total overhead allocated to Desk lamps
Desk lamps Amount
Setups 60,000/24,000 * 16,000 = 40,000
Inspections 120,000
/24,000 * 8,000 = 40,000
Assembly 280,000/28,000 * 12,000 = <u>120,000</u>
Total factory overhead rate = <u>$200,000</u>