Answer:
It should accept the special order at the price of $36 as the total marginal cost will be $28.5 (27 variable cost + 1.15 shipping cost).
Explanation:
Special orders are accepted only if marginal revenue increases the marginal cost. Marginal cost is the total cost incurred to fulfill any order.
In the given scenario, since the Company already has adequate capacity and it will not incur any additional fixed cost, therefore the order can be accepted by taking variable cost in to consideration.
Marginal Revenue 36
Less: Marginal Cost
Variable Cost (27)
Shipping Cost <u> (1.15)</u>
Total Profit from Order <u> 7.85</u>
Answer:
The answer is $994.85
Explanation:
This can be calculated using the proportion method.
Unit $ worth of the property costs = $550 / $68,000 = 0.008088
$123,000 worth of property costs = 0.008088 * $123,000 = $994.85
Answer:
D) increase at a faster rate than the costs associated with those sales.
Explanation:
If the break even point was reached during the 20th day of the month, then any revenue generated during the remaining 10-11 days will increase net profits. The amount of net profit increase will be determined by the contribution margin of each service provided. The contribution margin = net sales - variable costs. Since the fixed costs have already been covered, the contribution margin will be equal to the net profit.
Answer:
d. Scientific management.
Explanation:
The management theory used by Henry in this case is scientific management, which can be understood as an administrative model created by Taylor.
The main objective of scientific management is to make work more efficient using less resources and efforts, that is, making work more flexible by rationalizing work and implementing scientific techniques and training employees so that there is efficiency and effectiveness in organizational processes, with the lowest cost, time and continuous improvement.
Answer:
Downward sloping
Explanation:
According to the law of demand, this law states that there is a inverse relationship between the price of a commodity and the quantity demanded for a commodity. This indicates that as the price of the commodity increases then as a result the quantity demanded for that commodity decreases and as the price of the commodity decreases then as a result the quantity demanded for that commodity increases.
Monopoly refers to the market conditions in which there is only a single firm operating in a whole market.
Hence, due to this inverse relationship between the price and the quantity demanded, the demand curve for a monopoly firm is downward sloping.
