Answer: A) supply increases and demand stays the same
Check out the diagram below. The curves S1 and D1 are the original supply and demand curves for some product. If we shift S1 to the right, we get some new curve S2. This is increasing supply. Keeping D1 the same means that the equilibrium price slides down and the quantity goes up.
In short, we have more stuff in the market, and each of those items is cheaper.
<span>Brand awareness facilitates decision-making and is especially important for which type of consumer goods: public goods.
Public goods are non-excludable items so there is fair game for anyone and everyone in the market for an item to make this purchase. Because this items are everywhere, there is normally a decent amount of competing brands with the same product though packaging, quality and quantity can differentiate. Brand awareness helps the consumer know which brand to purchase when there are dozens to choose from. </span>
Answer:
1. $46,550
2. $405,000
3. $450,600
Explanation:
1. Computation of differential cost regarding the decision to buy the model 200
Differential cost = Cost of a new model 300 - Cost of a new model 200
Differential cost = $396,350 - $349,800
Differential cost = $46,550
So, the differential cost regarding decision to buy model 200 is $46,550.
2. Sunk costs are the costs which are already incurred by the entity in the past and which are not relevant to decision made today. In this case, sunk cost is the cost of the machine purchased seven years ago for $405,000.
3. Opportunity cost is the profit forgone by chosen alternative course of action. In this case, the Opportunity cost regarding the decision to invest in the model 200 machine is $450,600.
Answer:
c.$36,750
Explanation:
If Bulls Division were dropped, then the total segment margin would be $147,000 and the total common cost would be $110,250, Then:
Operating income = Segment margin - Total cost
= $147,000 - $110,250
= $36,750
Therefore, The Operating income for Knickers Corporation as a whole if the Bulls division were dropped would be $36,750.
Answer:
less than $1 million.
Explanation:
According to my research, I can say that based on the information provided within the question this next change is likely to save less than $1 million. We can predict this since the first change saved $1 million but was a reduction of 3%, the second change is a reduction of 2% so it will most likely not reach 1$ million in savings
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