The core goal of business is to generate long term relationships by delivering quality products to their customers.
Answer:
$9.15
Explanation:
Contribution margin is the net value of sales and variable cost of a product. We need to deduct variable cost from selling price of a product to calculate the contribution margin .
First we need to determine the total variable cost.
Labor Cost ( $9 x ( 1 - 0.1 ) ) $8.1
Material cost $12.75
Shipping cost <u>$2.50</u>
Total Variable cost <u>$23.35</u>
Price = $32.50
Contribution Margin = Selling price - Variable cost
Contribution Margin = $32.50 - $23.35 = $9.15
Answer: Option (c) is correct.
Explanation:
Given that,
Alternatives for a person if he do not attend his neighbor's barbecue:
(1) Watch television with some friends = he value this at $17
(2) Read a good novel = he value this at $14
(3) Go in to work = he could earn $16 during the barbecue
Opportunity cost is the benefit that is foregone for an individual by choosing one alternative over other alternatives available to him.
If the opportunity cost is lower for an individual then this will benefit him whereas if the opportunity cost is higher then this will not benefit the individuals.
Therefore, the opportunity cost of going to his neighbor's barbecue is the enjoyment he get from watching television with some friends because this is the highest valued alternative forfeited.
Answer:
Absolute, Comparative, Opportunity cost, Gains of trade, Not possible
Explanation:
The terms that will be filled in these blanks are economic terms that are used often in the business. The completed sentences have been written below -
- To have absolute advantage means to be able to produce more using the same resources.
- To have comparative advantage means to have a lower opportunity cost.
- Comparative advantage is the basis for gains of trade.
- It is not possible for one producer to have a comparative advantage for every good.
