Incremental Analysis

question 22

Essay

Incremental Analysis. Fan Diego, Inc., manufactures a hand-held electric hair dryer. Sales have increased steadily during recent years and, because of a recently completed expansion program, annual capacity is now 250,000 units. Production and sales during the coming year are forecast at 150,000 units, and standard production costs have been estimated as:

In addition to production costs, Fan Diego incurs fixed selling expenses of 50¢ per unit, and variable warranty repair expenses of 75¢ per unit. Fan Diego currently receives $8.25 per unit from its customers (primarily retail department stores) and expects this price to hold during the coming year.
After making the above projections, Fan Diego received an inquiry concerning the purchase of a large number of units by a discount department store. The inquiry contained two purchase offers:

Identify and employ strategies for maintaining credibility and professionalism in various communication settings.

Grasp the significance of nonverbal cues in interpreting messages and building rapport.

Appreciate gender differences in communication styles and their impact on interpersonal relations.

Understand the impact of defensive communication and strategies for dealing with it.

---

Definitions:

Anal Canal

Terminal portion of the digestive tract.

Internal Sphincter

A ring of muscle that surrounds and closes a natural bodily passageway, functioning involuntarily.

External Sphincter

A circular muscle that helps control the expulsion of feces from the anal canal or urine from the bladder.

Large Intestine

A part of the digestive system responsible for absorbing water and electrolytes, forming and storing feces.