In the Case Study in the Text Involving Calculator Production

question 25

Multiple Choice

In the case study in the text involving calculator production, the fact that each calculator produced added $10.30 to cost and $12 to revenue made clear the value of ____ in determining whether or not to suspend production.

• A)average fixed cost
• B)cost saving
• C)marginal analysis
• D)the level of fixed cost

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Definitions:

Trade Practice

Trade practice involves the customary ways in which trade is conducted within a particular industry, including standards of conduct, competition, and fair dealing.

Claim in Recoupment

A legal claim made in defense to a counterclaim, aiming to offset or reduce the amount of damages sought by the original claimant.

Personal Defense

Legal arguments or claims that an individual can use to avoid enforcement of a contract or demand based on issues personal to him or her.

Real Defense

Legitimate legal reasons that can be used to avoid the enforcement of a contract or negate an obligation.