Rippey Ltd Recently, a Company Approached Rippey Ltd

question 20

Essay

Rippey Ltd. manufactures a single product with the following unit costs for 5,000 units: $\begin{array}{lr}\text { Direct materials } & £ 60 \\\text { Direct labour } & 30 \\\text { Factory overhead }(40 \% \text { variable) } & 90 \\\text { Selling expenses }(60 \% \text { variable) } & 30 \\\text { Administrative expenses }(20 \% \text { variable }) & 15 \\\text { Total per unit } & £ 225\end{array}$ Recently, a company approached Rippey Ltd. about buying 1,000 units for £225. Currently, the models are sold to dealers for £412.50. Rippey's capacity is sufficient to produce the extra 1,000 units. No additional selling expenses would be incurred on the special order.
a.What is the profit earned by Rippey Ltd. on the original 5,000 units?
b.Should Rippey accept the special order if its goal is to maximize short-run profits? How much will income be affected?
c.Determine the minimum price Rippey would want to receive in order to increase profits by £7,500 on the special order.
d.When making a special order decision, what nonquantitative aspects of the decision should Rippey Ltd. consider?

Differentiate between single-trait, many-trait, essential-trait, and typological approaches to studying personality.

Explain the impact of certain traits on behavior and social perception.

Understand the concept of essential traits and the theories associated with them.

Comprehend how personality traits influence preferences and perceptions.

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Definitions:

Consumer Preferences

The subjective tastes and desires that dictate the choices a consumer makes among different products and services.

Professors of Finance

Academic professionals specializing in finance theory, financial market analysis, and investment strategies.

Professors of Economics

Academics specialized in the study of economics, typically working in universities or colleges, conducting research, and teaching students about economic theories and principles.

Supply

The overall quantity of a particular product or service that is accessible to buyers.