Answer: True
Explanation: I got it right. Have a blessed day!!! :)
A pricing tool that focuses on the changes in total revenue and total cost from selling one more unit to find the most profitable price and quantity is called Marginal analysis.
Marginal analysis is an examination of the added benefits of an activity against the incremental costs resulting from the same activity. Businesses use marginal analysis as a decision-making tool to help them maximize their potential revenue. For example, if a company has a budget to make room for another employee and plans to hire another person to work in the factory, marginal analysis indicates that hiring that person provides a net marginal benefit.
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Answer:
Target unitary cost= $30
Explanation:
Giving the following information:
Selling price= $62 per unit
Desired profit= $32 per unit
<u>To calculate the target unitary cost, we need to use the following formula:</u>
Target unitary cost= selling price - desired profit
Target unitary cost= 62 - 32
Target unitary cost= $30
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