Answer:
Price gouging is charging unnecessarily high prices for goods if they are in high demand in market. From a sellers perspective its profitable because he/she is able to get more profits on a good and because the goods have a high demand the goods will eventually be sold even on a high price.
From a consumers perspective if the good is a basic need and the consumer is paying high price for it, this can be frustrating but the consumer will have to buy it. If the commodity is not a basic need then the consumer can just stop buying that good and can substitute any other good.
Explanation:
Price gouging is charging unnecessarily high prices for goods if they are in high demand in market. From a sellers perspective its profitable because he/she is able to get more profits on a good and because the goods have a high demand the goods will eventually be sold even on a high price.
From a consumers perspective if the good is a basic need and the consumer is paying high price for it, this can be frustrating but the consumer will have to buy it. If the commodity is not a basic need then the consumer can just stop buying that good and can substitute any other good.
When your financially comfortable
Answer:
False
Explanation:
Variable costs are part of direct expenses incurred in the production of goods meant for sales. Variable costs have a direct and proportionate relationship with the output level. An increase in output level increases variable costs. Examples of variable costs are packaging and raw materials.
The contribution margin is the dollar amount available from the sale of each unit to cater for fixed costs and profits. It is calculated by subtracting variable costs from the selling price. The contribution margin is used in determining the break-even point and the output level required to achieve desired profits.
Answer:
the direct material quantity variance is $5,000 favorable
Explanation:
The computation of the direct material quantity variance is shown below:
Direct material quantity variance is
= (Actual quantity - standard quantity) × standard price
= (9,200 pounds - 5,100 units × 2 pounds) × $5 per pound
= (9,200 pounds - 10,200 pounds) × $5 per pound
= $5,000 favorable
hence, the direct material quantity variance is $5,000 favorable
