Answer:
Reduce production
Explanation:
Profit is maximised where marginal revenue equals marginal cost. Because marginal cost is greater than marginal revenue, Kimberly should reduce production unit the point where marginal cost equals $27.
Marginal cost is the increase in cost as a result of increasing production by one unit.
Marginal revenue is the increase in revenue as a result of selling one extra unit of a product.
Answer:
$23,000
Explanation:
current annual sales = 49,000 packs
Selling price of course packs = $14 each
variable cost per pack = $12
Earnings = $75,000
Contribution:
= current annual sales × (Selling price of course packs - variable cost per pack)
= 49,000 packs × ($14 - $12)
= 49,000 packs × $2
= $98,000
Fixed costs of producing the course packs:
= Contribution - Earnings
= $98,000 - $75,000
= $23,000
Answer:
B. The marginal cost of going to Ft. Lauderdale decreases.
Explanation:
Consider marginal cost and benefit before making a purchase.
Marginal cost is the increase or decrease of the cost of a particular actions.
Marginal benefit is the increase or decrease of the benefit of the action.
For example, if two items are identical and priced differently, the marginal benefit increases when the lower price is selected.
If two items are similar but not identical you would have to assess the cost and benefits of each more.
If marginal cost exceeds the marginal benefit you shuold not purchase the item or consider another option.
In this case, the only option that may reverse this desition is that the marginal cost of going to Ft. Lauderdale decreases.
A filmmaker will seek a sound production mixer who has the qualities and qualifications that is responsible for ensuring that dialogue recorded during filming is suitably clear, tries to avoid unwanted noises and works around the camera which might hamper the placement of microphones. A production sound mixer who has his or her own equipment as this choice can save the filmmaker a considerable amount of money in sound equipment rental, and the mixer is likely to be skilled in using his or her own equipment.
