Ganges Company Makes Bulk Burlap by the Ton

question 42

Multiple Choice

Ganges Company makes bulk burlap by the ton. Currently, their manufacturing cost is $215 per unit, and their non-manufacturing cost is $40 per unit. The going market price of the product is $300. Ganges uses the target price and target cost methodology. If they desire to make a profit of 20% on the price, what must they do?

• A)Increase the advertising costs by $15 per unit.
• B)Reduce the price they charge by $15 per unit.
• C)Reduce the full-product cost by $60 per unit.
• D)Reduce the full-product cost by $15 per unit.

Analyze the role of direct quotations in introducing essay topics.

Distinguish between general statements and thesis-specific introductions.

Understand the impact of contradiction in essay structures.

Recognize the use of illustrations to introduce essay subjects.

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Definitions:

Deadweight Loss

The loss of economic efficiency that occurs when the equitable balance of supply and demand is not achieved due to market distortion.

Tax Increases

Governmental action to raise the amount of money collected from taxes, often affecting income, sales, or property taxes.

Deadweight Loss

An inefficiency in the market where the total surplus of producer and consumer is not maximized due to factors like taxes or subsidies.

Elastic Demand

A situation where the quantity demanded of a good or service significantly changes in response to a change in price.