product line”. The financial controller proposed a termination of the production of the product while the marketing manager suggested a £1 per unit reduction in the price so as to increase the demand of the product. On the other hand‚ the managing director thought that a 10% increase in both sales and activity across the board would make a difference. Furthermore‚ the production manager considered re-organization of production activities and also the use of a cheaper component of product Z. though
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Economics Marginal Analysis Marginal Revenue Marginal revenue is the revenue generated by selling more products at a slightly lower price‚ selling more products thus increasing your businesses total revenue. A good example of this would be Little Creasers Pizza; the franchises set the prices of their pizzas much lower than their competitors and sell a lot more pizza at a smaller margin‚ but sell many more pizzas than their competitors to make a good profit. Marginal Cost Marginal cost is
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Management Accounting PART-A Q. 1. State three points of similarities between financial accounting and cost accounting. Ans. Both financial and cost accounting are interdependent and their co-existence enables businesses to compute costs and sales realistically‚ properly and most importantly helps them to avoid loss some of similarities are mentioned below 1 Reports Financial accounting is used to produce reports that include financial statements‚ including the balance sheet‚ income
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which profit maximization is achieved is at the production of 8 units. 2. The second method is the marginal revenue to marginal cost approach. MR=MC This method uses the point at which both marginal revenue and marginal cost are equal to each other to determine at what point the quantity produced maximizes total economic profit. In exhibit 1‚ the point at which marginal revenue and marginal cost are equal is at the production of 8 units B. Marginal revenue (MR) is the additional revenue received
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Flow of Goods and Services Flow of Cash EXAMPLES OF TRANSACTIONS ON MARKET FOR GOODS AND SERVICES Question 1(a) and 1(c) EXAMPLES OF TRANSACTIONS ON MARKET FOR FACTOR OF PRODUCTION Question 1(b) and 1(d) Question 2 Consider the market for minivans. For each of the events listed here‚ identify which of the determinants of demand or supply are affected. Also indicate whether demand or supply increases
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Home Depot Student Name Course Date Instructor Name Home Depot Home Depot opened its first home improvement store in Atlanta Georgia in 1978. The company developed a tactical product analysis providing an assortment of products and services to customers. The products Home Depot offers focus on contractors and the do-it-yourself customers‚ as well as free how to clinics and workshops for children allowing them to build an item onsite in the store. Home Depot has grown into an internationally
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cost. b. marginal revenue equals marginal cost. c. price equals average total cost. d. price equals marginal cost. 3. In the long run‚ neither competitive price takers nor competitive price searchers will be able to earn economic profits because a. entry barriers into these markets are high‚ raising the costs of each firm. b. the government will dictate moderate prices for these firms. c. competition will force prices down to the level of per-unit production costs. d. marginal revenue
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line; product mix D) product unit; product tangibility E) product mix; product line 3. Among consumer goods‚ advertising and wide distribution are especially important for: A) durable goods. B) unsought goods. C) nondurable goods. D) production goods. E) semidurable goods. 4. The Upjohn Company first targeted men for its Rogaine topical solution‚ a prescription drug to restore hair growth‚ but later marketed this product to women. This is an example of which strategy? A) Finding
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patrons with ATM cards that are accepted by the machine can use the machine. Therefore the ATM is a private good. 2. a. False. Efficient provision of a public good occurs at the level where total willingness to pay for an additional unit equals the marginal cost of producing the additional unit. b. False. Due to the free rider problem‚ it is unlikely that a private business firm could profitably sell a product that is non-excludable. However‚ recent research reveals that the free rider problem is
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Econ2TEST4 Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Five months ago Wilson opened up a health club. Which of the following is an implicit cost related to the health club? a. Wilson paid $120 for an outside laundry service to clean the towels used at the club. b. Wilson paid $100 for the pest control exterminator to spray the health club. c. Wilson previously worked as an accountant‚ earning $3‚000 a month. d. Wilson usually eats four
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