Answer:
Because as more hats are produced less grapes can be produced.
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
There are two commodities that can be produced by the country- hats and grapes.
If the country decides to increase production of hats, it has to reduce the quantity of hats that can be produced, therefore the opportunity cost increases.
Explanation:
For example, let assume a country can produce 30 grapes and 30 hats. If it decides to increase the amount of hats produced to 40, only 20 grapes can be produced. If it decides to increase to 50 hats only 10 grapes would be produced and if it decides to produce 60 hats, no grapes would be produced.
It can be seen that opportunity cost increases as more hats are produced
I hope my answer helps you
I would assume true, visual merchandising is more of displaying products and flat drawing aren’t as interactive.
Answer:
d) $57,500
Explanation:
For computation of gross margin under absorption costing first we need to find out the unit product cost under absorption costing which is shown below:-
Unit product cost under absorption costing = Direct materials + Direct labor + Variable manufacturing overhead + (Fixed manufacturing overhead ÷ Units produced)
= $32 + $45 + $2 + ($43,500 ÷ 2,900)
= $32 + $45 + $2 + $15
= $94 per unit
Gross margin = Units sold × (
Selling price - Unit product cost under absorption costing)
= 2,500 × ($117 - $94)
= $57,500
