Answer:
Income will increase by $5 per unit
Explanation:
The income effect in case of the order accepted is presented below:
As we know that
Additional sales per unit $32
Direct material per unit $12
Direct labor per unit $9
And, the incremental variable overhead cost is $6 per unit
Since the fixed cost is the same so it does not affect the effect on income
So, the income effect would be
= $32 - $12 - $9 - $6
= $5 per unit
Since the answer comes in positive which means there is an increase in income
Answer:
The fixed costs per unit when 20,000 units are produced are $6.05 per unit.
Explanation:
Fixed costs per unit can be determined by using the following formula:
Fixed costs per unit = Total fixed costs/ number of units are produced
In a company, Total fixed costs do not depend on the level of activity (Fixed costs do not change).
In the company, Total fixed cost = $11 x 11,000 = $121,000
When 20,000 units are produced, Fixed costs per unit = $121,000/20,000 = $6.05 per unit.
Not necessarily, but the chances of you getting the position are seriously impeded, even for small mistakes.
Answer: Option D
Explanation: In simple words, price elasticity refers to the degree of change in demand of a commodity with respect to change in its price. It generally shows the fact that when the price of a commodity rises the demand for ti decreases due to various phenomenon coming into force such as income effect etc.
The price elasticity is calculated by dividing the change in quantity demanded with the change in price.
Price discrimination is the action of selling the same product at different prices to different buyers, in order to maximize sales and profits. Movie theaters practice it by giving discounts on certain night. Example: senior citizens discount. Restaurants practice price discrimination by menu pricing.
