The minimum price that this order could be offered is at cost. Since there are no cost figures in this question, this is the best answer I can give.
You would need to at least sell the item for the amount of money it cost you to make, assemble, and ship the product.
Answer:
The correct answer is B.
Explanation:
Giving the following information:
Special one-time order for 15,000 bird feeders at $3 per unit.
Variable cost= $2.25
<u>Because it is a special offer and there is unused capacity, we will not have into account the fixed costs.</u>
Effect on income= 15,000*(3 - 2.25)= $11,250 increase.
Answer:
D
Explanation:
Profit = Revenue - cost
Cost = fixed cost + variable cost
if variable cost increases by 10%, cost would increase by 10%.
Revenue also increases by 10%
So, the increase in revenue would be cancelled by the increase in cost and profit would not change
Answer:
Thus, expected value of playing = $2.8 - $2 = $0.8
Explanation:
Cost of playing = $2
Expected return
10% chance to win $1 = $1 
10% = $0.1
25% chance to win back $2 = $2 25% = $0.5
50% chance to win $5 = $5 50% = $2.5
15% chance to lose $2 (being cost) = $2 15% = ($0.3)
= $0.1 + $0.5 + $2.5 - $0.3 = $2.8
Now for this we have to pay fixed cost $2
Thus, expected value of playing = $2.8 - $2 = $0.8
The Keynesian model is an economic theory developed by John Keynes to analyze the Great Depression in the 1930s. In this model, he advocated for increased government spending and lower taxes in an attempt to stimulate consumer demand to pull the economy out of the depression.
