Sunday, March 3, 2019
Incremental profit Essay
Distinguish between the followinga) Industry demand and Firm (Company) demand, b) short demand and Long run demand, and c) Durable wide-cuts demand and Non-durable goods demand.2 . What be the problems faced in determining the demand for a durable good? Illustrate with example of demand for households refrigerator or television set.3 . Analyze the method by which a firm can allocate the given advertising budget between different media of advertisement.4 . What cordial of relationship would you postulate between short-run and long-run average address curves when these are not U-shaped as suggested by the modern theories?5 . How do demand forecasting methods for new products vary from those for established products?6 . What are the different methods of measuring national income? Which methods have been followed in India?7 . What do you understand by the investment multiplier? In what way does it oblige the policy of public works on the part of the state during melodic phrase d epression?8 . Discuss the various phases of business cyclea. ar cyclical fluctuations necessary for economic growth? b. Suggest appropriate monetary and monetary policies for depressionAssignment B allCase issueelectron Control, Inc., sells voltage regulators to other manufacturers, who then customize and distribute the products to flavor assurance labs for their sensitive test equipment. The yearly volume of output is 15,000 unit of measurements. The marketing expense and cost per unit are shown belowSelling price$200CostsDirect material$35Direct roil50 multivariate overhead25Variable selling expenses25Fixed selling expenses15150Unit profit onwards tax$ 50Management is evaluating the alternative of performing the necessary customizing to forfeit Electron Control to sell its output directly to Q/A labs for $275 per unit. Although no added investment is required in productive facilities, additional processing cost are estimated asDirect labor$25 per unitVariable overhead$15 per unitVariable selling expenses$10 per unitFixed selling expenses$100,000 per yearCalculate the incremental profit Electron Control would earn by customizing its instruments and marketing directly to end users.
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