Voltage Electrical,which Installs Sophisticated Electronic-Control Systems in New Homes,prices Jobs

question 63

Essay

Voltage Electrical,which installs sophisticated electronic-control systems in new homes,prices jobs by using the time-and-materials method.The following data apply to a job for LMB Builders:
Labor hours: 180
Materials cost: $48,000
The following predictions,based on 30,000 direct labor hours,pertain to the company's operations for the year:

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Definitions:

Demand Curve

A graphical representation of the quantity of a good or service demanded by consumers at various prices, typically downward sloping indicating an inverse relationship between price and quantity demanded.

Average Revenue Curve

A graphical representation showing how the average revenue per unit sold changes with changes in the quantity of the product sold.

Marginal Revenue Curve

A graphical representation showing the additional revenue a firm can earn by selling one more unit of a good or service.

Marginal Profit

The additional profit earned from selling one more unit of a product or service.