Alpha's Pizza and Bravo's Pizza are two restaurants that are in a horizontal conflict known as a price war. This conflict will most likely have a positive impact on consumers by reducing prices.
Explanation:
The price conflict or war between two companies will affect the customers positively as they both the companies will try to attract more consumers by reducing their price.
This form of market is known as perfect competition where the consumers will buy from the manufactures which has lower price in comparison of other (same) product manufacturer.
The manufacturing overhead budget by quarters and in total for the year is as follows:
<u>Explanation:</u>
Particulars Q1 Q2 Q3 Q4 Total
Variable costs 20950 25180 29410 33640 109180
Fixed costs 35800 35800 35800 35800 143200
Total 56750 60980 65210 69440 252380
manufacturing costs
Note ; the total manufacturing costs is the sum total of the variable costs and the fixed costs that haveen assigned and allocated to each of the quarter respectively and in totality.
Note 2. in the variable cost , each quarter cost has been increased with an amount of $4230 as mentioned in the question and the fixed cost remains the same in each quarter as given in the question.
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