Answer: a. The manufacturers had engaged in a per se violation of antitrust laws.
Explanation: The Sherman and Clayton Acts would apply to US companies. The group of manufacturers of LCD screens were not specified as US companies. But by virtue of the fact of colluding with Korean makers they would have per se been violating the the Monopoly Regulation and Fair Trade Act (MRFTA) of Korea.
Question
Ellis Television makes and sells portable televisions. Each television regularly sells for $210. The following cost data per television is based on a full capacity of 10,000 televisions produced each period.
Direct material - $80
Direct Labour -$60
Manufacturing overhead(70% variable, 30% unavoidable fixed cos) -$40
A special order has been received by Ellis for a sale of 2,000 televisions to an overseas customer. The only selling costs that would be incurred on this order would be $6 per television for shipping. Ellis is now selling 6,000 televisions through regular channels each period. What should be the minimum selling price per television in negotiating a price for this special order?
Answer:
The minimum selling price = $174.
Explanation:
The minimum selling price to be acceptable for the special order be the same as the relevant variable cost of producing a unit.
The relevant variable cost = marginal cost of a unit
Marginal cost = Direct material + Direct labour + Variable manufacturing overhead + shipping cost
Marginal cost = 80 + 60 + (70%× 40) + 6
= 174
The minimum selling price = $174.
Note : The 30% balance of manufacturing overhead which represents unavoidable fixed costs is irrelevant for this decision. These are costs that would be incurred either way whether or not the special order is accepted.
Answer: <em>Polish, Civility and Social Intelligence </em>
Explanation:
The following are the synonyms for the professional behavior: Civility, Polish and Social Intelligence. Social intelligence is referred to as or known as the capacity of an individual to know himself/herself and other individual. Civility is referred or as known as the civilized conduct i.e. considered to be a polite act or an expression
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