Let x be the original price of an item. For the first case, the employee avails the 25% first then the 10%.
Price: (0.75x)(0.90) = 0.675x
For the second case, the 10% discount is availed first then, the 25%.
Price: (0.90x)(0.75) = 0.675x
Thus, whichever is the case, the price would be the same. The answer is letter D.
Answer:
B) = $38.44
Explanation:
<em>Activity-based costing is a form of absorption costing where overheads are charged to product using cost drivers. Under this method, overheads are first analyzed and categorized by the activities responsible for them and then charged to product based on the amount of benefits enjoyed using cost drivers.</em>
Activity rate is calculated as:
<em>Activity cost for the period / Total cost drivers for the period</em>
<u><em>Activity rate for supporting customers:</em></u>
<em>The appropriate cost driver to allocate supporting customer activity is the number of customers as given. This is so because it is most likely that the number of customers served will be a major factor that influences the supporting customers activity costs. </em>
<u><em>Activity rate for supporting customers </em></u>
= Supporting customers overhead/total number of customers
= $34,600/(600+300)
= $38.44
Purchase momentum.
Initial impulses to buy lead to higher likelihoods of purchasing more.