Which of the Following Most Directly Explains Why Pharmaceutical Giant

question 201

Multiple Choice

Which of the following most directly explains why pharmaceutical giant Pfizer offered low-income senior citizens many of its most widely used prescriptions for $15 each per month?

• A)the profit motive since aging baby boomers are a large,profitable market
• B)the social responsibility concept
• C)the necessity of matching competitors' actions
• D)new regulatory Medicare mandates as a result of the Affordable Care Act
• E)the mandate by its industry's code of ethics

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Definitions:

Variable Costs

Costs that fluctuate with changes in production volume, including expenses like raw materials and direct labor.

Average Fixed Inspection Cost

A cost that remains constant per unit but varies in total, associated specifically with the inspection process in manufacturing or quality control.

Fixed Inspection Cost

A fixed cost associated with quality inspections that does not change with the level of production or services.

Machine-Hours

Machine-hours represent the total time that machinery is in operation, used as a basis for allocating machine-related costs to products.