Use the Information Below to Answer the Following Questions The Demand for All Service Is Unlimited

question 50

Multiple Choice

Use the information below to answer the following questions.
Computers Expertise Ltd provides three services, the details for which are as follows: $\begin{array}{llll}& \underline{\text { Basic} }& \underline{ \text { Secretarial }} & \underline{ \text { Expert }}\\ \text { Sales price per unit } & \$ 20 & \$ 30 & \$ 50 \\\text { Variable cost per unit } & \$ 10 & \$ 12 & \$ 15 \\\text { (paper, transport, etc.) } & & & \\\text { Labour time per unit } & 1 \text { hour } & 2 \text { hours } & 5 \text { hours } \\\text { Annual fixed costs } & \$ 20,000 & &\end{array}$
The demand for all service is unlimited. The ability to provide the service is limited by the availability of qualified staff and therefore the labour time available.
-Refer to the table above. Which product is the most profitable?

• A)Expert, because it has the highest contribution margin.
• B)Expert, because it has the highest sales price.
• C)Secretarial, because it is the most pleasurable for staff.
• D)Basic, because it provides the highest dollar contribution per labour hour.

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Definitions:

Threats

Potential causes of harm or danger to individuals, organizations, or systems.

Rewards

Benefits or compensations given to individuals to recognize and encourage their achievements or desired behavior.

Upward Appeals

A method in workplace communication where employees attempt to gain support or approval for their ideas by appealing to higher-level managers or authorities.

Personal Appeals

Requests or messages that target an individual's emotions, values, or personal relationships to influence their decision or behavior.