Answer:
Stage 1
Stage one is the period of most growth in a company's production. In this period, each additional variable input will produce more products. This signifies an increasing marginal return; the investment on the variable input outweighs the cost of producing an additional product at an increasing rate. As an example, if one employee produces five cans by himself, two employees may produce 15 cans between the two of them. All three curves are increasing and positive in this stage.
Stage 2
Stage two is the period where marginal returns start to decrease. Each additional variable input will still produce additional units but at a decreasing rate. This is because of the law of diminishing returns: Output steadily decreases on each additional unit of variable input, holding all other inputs fixed. For example, if a previous employee added nine more cans to production, the next employee may only add eight more cans to production. The total product curve is still rising in this stage, while the average and marginal curves both start to drop.
Stage 3
In stage three, marginal returns start to turn negative. Adding more variable inputs becomes counterproductive; an additional source of labor will lessen overall production. For example, hiring an additional employee to produce cans will actually result in fewer cans produced overall. This may be due to factors such as labor capacity and efficiency limitations. In this stage, the total product curve starts to trend down, the average product curve continues its descent and the marginal curve becomes negative.
penetration pricing may follow skimming pricing. the skimming pricing would help recoup initial research and development costs; increase market share.
price skimming sets charges better to draw customers maximum interest in the services or products to maximize brief-time period profits. Penetration pricing uses decreased prices to build a customer base for brand new services or products.
Penetration Pricing is a pricing approach in which the rate set via the firm is low first of all, with the purpose to appeal to more and more clients. Skimming Pricing manner a pricing approach in which the company set a high price for the product at its advent level for you to acquire the most income. Penetrate the market.
Charge skimming unit prices higher to draw clients most interested in the products or services to maximize quick-term income. Penetration pricing uses lower prices to construct a consumer base for brand new services or products.
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Answer:
Total= 42,400 units
Explanation:
Giving the following information:
Houseman, Inc. anticipates sales of 43,000 units, 41,000 units, and 44,000 units in July, August, and September, respectively. Company policy is to maintain an ending finished-goods inventory equal to 30% of the following month's sales.
We will assume that the beginning inventory for July equals the 30% policy.
Production:
Sales for July= 43,000
Ending inventory= (41,000*0.3)= 12,300
Beginning inventory= (43,000*0.3)= (12,900)
Total= 42,400 units
Answer:
$5,775,000
Explanation:
Direct materials cost = Materials purchased + Indirect materials + Materials inventory, end of the period
Direct materials cost = $5,100,000 + $195,000 + $480,000
Direct materials cost = $5,775,000
So, the amount of the direct material cost is $5,775,000.
