Generally, net income will be the same under absorption costing and variable costing. However, producing fewer units than units sold will decrease the net income under absorption costing. As whatever the variable cost is under the absorption method, fixed manufacturing overhead remains the same that decreases the gross profit and net income. Under the variable costing, the fixed overhead will be calculated as per the units produced. Therefore, the net income will decrease proportionately.
Behaviouristic segmentation is the way businesses group customers based on buying behaviour. They are grouped according to usage frequency, brand loyalty, benefits, and buying patterns.
Behavioural segmentation makes it easier to target group of similar consumers and better meet their similar needs.
This also gives rise to customisation of products and services to meet unique needs of clients.
Price: $20, how many units to maximize the total utility
Let X is the number of units we need to find
As we know that, the law of equal-marginal utility a consumer spends his or her income among goods so that utilities receive from the amount spent is equal. So we use a simple rule of three:
Employment is the key factor for a country’s growth. For an example, if a person is unemployed and don’t have money to spend on his necessities. Such as, food, cloth, travelling etc. which means the companies who provide these goods and services will go in loss. because nobody has enough potential to buy it. which means goods demand will start to decline. Further, if we start import and export business than we have to pay extra money to get the same services. which will drop the value of currency.
