Answer:
2.86 Q + 2,170 = overhead cost
Explanation:
![\left[\begin{array}{ccc}High&4,200&14,182\\Low&2,300&8,748\\Diference&1,900&5,434\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bccc%7DHigh%264%2C200%2614%2C182%5C%5CLow%262%2C300%268%2C748%5C%5CDiference%261%2C900%265%2C434%5C%5C%5Cend%7Barray%7D%5Cright%5D)
We subtract one activity level from another, the result is telling us that 1,900 units generate 5,434 additional cost
That is variable cost we divide and get the unit variable cost
cost 5434 / Unis 1900 = variable cost 2.86
Next we calcualte the fixed cost on any of both
Total Cost 14182
Variable -12012 (4,200 x 2.86)
Fixed Cost 2170
Total Cost 8748
Variable 6578 ( 2,300 x 2.86)
Fixed Cost 2170
the cost equation would be:
2.86 Q + 2,170 = overhead cost
Answer:
Red Oak 3,136
Cyril Inc 1,470
Total net revenue 4,606
Explanation:
Red Oak
4,000 - 20% trade-in allowance = 3,200
if payment within discount period: 3,200 x 2% = 64
3,200 - 64 = 3,136 for Red Oak
Cyril Inc
1,500 not qualificable for allowance
payment within discount period
1,500 x 2% = 30
1,500 - 30 = 1,470 for Cyril Inc
Answer:
C. There are no costs of switching to competitor's products.
Explanation:
Demand is buyers ability & willingness to buy at a price, time. Elasticity of Demand is buyers' demand responsiveness to price change.
Elastic demand means demand changes more with regards to price change. Inelastic demand means demand changes less with regards to price change.
In case of : buyers perceiving less substitute competing goods, item representing a small fraction of consumer's budget, buyers having less time to adjust to price change - Demand responds less to price change i.e is Inelastic.
If there are no costs to switching to substitute competitors' goods, shifting to other substitute goods is more convenient. This easier goods substitution makes good's demand more responsive to price change i.e Demand is Elastic.
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