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galben [10]
3 years ago
11

A company has two operating segments. Segment A of the company has been operating at 70% capacity for the last two years. It pro

duces a single product, which it sells to external customers for $17 per unit. Variable costs to produce one unit are $11 and the allocated fixed overhead costs are $3 per unit. Segment B purchases the same product produced by Segment A from an outside vendor for $15. Management is considering obtaining the product from Segment A. If Segment A begins to manufacture enough product to sell to its external customers, as well as to Segment B, Segment A will be operating at 94% capacity. What is the minimum price that Segment A should charge Segment B?
Business
1 answer:
Elena-2011 [213]3 years ago
3 0

Answer:

$11 per unit

Explanation:

Based on the information given the MINIMUM PRICE that Segment A SHOULD CHARGE Segment B will be $11 per unit reason been that we were told that segment A VARIABLE COSTS TO PRODUCE ONE UNIT is $11 per unit.

Therefore the MINIMUM PRICE that Segment A SHOULD CHARGE Segment B will be $11 per units.

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Answer:

a, Redistribute income from Victoria to Fredrick.

Explanation:

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would leave the market first if the price were any lower.

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Utility can be defined as any satisfaction or benefits a customer derives from the use of a product or service.

Thus, any satisfaction or benefits a customer derives from the use of a product or service is generally referred to as a utility.

In Economics, The law of diminishing marginal utility states that as the unit of a good or service consumed by an individual increases, the additional satisfaction he or she derives from consuming additional units would start decreasing or diminishing as the units of good or service consumed increases.

A marginal seller refers to an individual or business firm that is most willing to sell his or her goods and services at a price that is typically equal to their economic cost while forfeiting producer surplus.

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An ecosystem requires nutrients, decomposers, consumers and producers. For instance, let's take the relationship between deer and lion in the ecosystem. So, for its survival, the lion eats the deer. Thus, each relationship like this has an effect on other creatures and plants living in the same environment.

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