The Demand Function for Fresh Strawberries Is Q = 200

question 17

Multiple Choice

The demand function for fresh strawberries is q = 200 - 5p and the supply function is q = 60 + 2p.What is the equilibrium price?

• A)$10
• B)$20
• C)$40
• D)$50
• E)None of the above.

Differentiate between product costs and period costs.

Recognize direct materials, direct labor, and manufacturing overhead as components of product costs.

Distinguish between selling and administrative expenses and manufacturing costs.

Identify direct costs and indirect costs with respect to a specific cost object.

---

Definitions:

Special Order

An order for goods or services that is outside the company's normal production or service offerings, often requiring special pricing or terms.

Financially Better

A state or condition where financial health, performance, or position has improved or is superior to a previous state or to another entity's state.

Total Contribution Margin

The difference between total sales revenue and total variable costs, indicating how much revenue contributes toward covering fixed costs and generating profit.

Machine Hours

A measure of production output or activity based on the number of hours machines are operated.