Answer:
Anne exhibits high level of product involvement.
Explanation:
Product involvement is the level of consumers interest in the product and the associated relationship of the consumer with the product.
As it is evident from the question that Anne is well informed about the deals and has interest in knowing about the product before buying it. This indicates the high level of product involvement.
Answer:
c. cease production immediately, because it is incurring a loss.
Explanation:
When a business engages in production it looks to make profit. That is for the production price to be higher than cost incurred in producing the good.
However when the price is lower than the average variable cost as is indicated in the scenario then the firm needs to shut down production in the short term.
Factors that will adversely affect a firm in the short term are price, average total cost, and average variable cost.
Once price is less than average total cost or average variable cost it is better to stop production.
As they are incurring an economic loss
Answer:
Technological substitution.
Explanation:
Technological substitution is basically the substitute to another option product of technology.
Answer: Introducing mass production methods into his business.
Explanation:
As the given information suggests that Cameron has a small graphic design business. He is responsible for customizing social websites which is a creative and time consuming task. This also require a lot of thinking and innovation skills. At the verge of expanding his business he should avoid mass production as this will likely to reduce his quality of production and limit his creativity.
Answer:
Debit Depreciation Expense, $525;
Credit Accumulated Depreciation, $525.
Explanation:
Based on the information given in a situation where the financial statements are to be prepared on December 31, which means that the company should make the following adjusting entry:
Debit Depreciation Expense, $525
Credit Accumulated Depreciation, $525
Calculated as:
Debit depreciation expense $6,300/12
Debit depreciation expense=$525
