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:

Recursive Method

A method that calls itself in order to solve a problem by breaking it down into smaller, more manageable tasks.

Binary Search

A search algorithm that finds the position of a target value within a sorted array by repeatedly dividing in half the portion of the list that could contain the target, thereby reducing the search area.

Iterative Method

A technique in programming and mathematics that involves repeatedly applying a set of operations to approximate a desired result or to traverse data structures.

Recursively Written

Describes a method or algorithm that calls itself within its own code.