Use the Table Below to Answer the Following Questions) -If D Is Demand, P Is the Unit Price, and the Spreadsheet

question 27

Multiple Choice

Use the table below to answer the following questions) .
In the spreadsheet below, there is data on the price, cost, demand, and quantity produced for an item. There are also different "what if" values that can help a manager to calculate costs and revenue with variability in demand. $$\begin{array} { | l | l | l | l | } \hline & \text { A } & \text { B } & \text { C } \\\hline 1 & \text { Prufit Madel } & & \\\hline 2 & & & \\\hline 3 & & & \text { What } \text { V J Demand } \\ & \text { Data } & & \text { Values } \\\hline 4 & & & 20,000 \\\hline 5 & \text { Unit Price \$) } & 50 & 40,000 \\\hline 6 & \text { Unit Cost \$) } & 25 & 55,000 \\\hline 7& \text { Fixed Cast \$) } & 550,000 & 60,000 \\\hline 8 & \text { Demand } & 60,000 & 65,000 \\\hline 9 & \text { Quantity Praduced } & 55,000 & \\\hline 10 & & & \\\hline\end{array}$$
-If D is demand, P is the unit price, and c and d are constants where d > 0 is the price elasticity) , which of the following is a nonlinear demand prediction model?

• A) D = d + c × P)
• B) D = d × P)c
• C) D = cd × P
• D) D = cP-d

---

Definitions:

Indirect Labor

Labor costs associated with the production process but not directly working on the product, such as supervisors, maintenance, and cleaning staff.

Product Cost

The total costs associated with producing a product, including direct materials, direct labor, and manufacturing overhead.

Period Cost

Expenses incurred by a business that are not directly tied to the production process, such as marketing, administration, and sales costs, which are expensed in the period in which they occur.

Advertising Fees

Costs associated with promotional activities to market goods or services, including media buys, production of advertising materials, and related expenses.