Answer:
(D) Traceable to a single cost object.
Explanation:
A direct cost -
It is refers to the amount which is directly linked to the production of the specific products and services , is referred to as the direct cost .
The direct cost is variable in nature .
The direct cost can be traced to the cost object , that can be department , product or service.
Hence, from the given information of the question,
The correct option is D.
Answer:
Tennis racquet cost is $76.71 per unit
Badminton racquet cost is $73.67 per unit
Price of badminton racquet at 30% mark-up is $95.77
Explanation:
I calculated the cost of each racquet as well as their prices in the attached excel file.
I started I added all prime costs(direct materials plus direct labor costs) to overhead costs.
After having arrived at total manufacturing costs, I divided them by volume of each product to arrive at cost per unit.
I then marked up the cost by 30% to determine market price per unit.
Answer:
PED = 0.67 inelastic demand
you should not lower the price of the book
Explanation:
the midpoint formula for calculating price elasticity of demand = {(Q2 - Q1) / [(Q2 + Q1) / 2]} / {(P2 - P1) / [(P2 + P1) / 2]}
PED = {(50 - 40) / [(50 + 40) / 2]} / {(25 - 35) / [(25 + 35) / 2]} = [10 / (90 / 2)] / [-10 / (60 / 2)] = (10 / 45) / (-10 / 30) = 0.222 / -0.333 = 0.67
the PED = 0.67 which means that the demand is inelastic
if you lower the price of the book, the increase in number of books sold will be proportionally lower than decrease in price, so you will lose money by doing that.
