The Following Information Relates to a Product Produced by Marigold

question 12

Multiple Choice

The following information relates to a product produced by Marigold Company:

Fixed selling costs are $650,000 per year, and variable selling costs are $10 per unit sold.Although production capacity is 400,000 units per year, the company expects to produce only 250,000 units next year.The product normally sells for $100 each.A customer has offered to buy 40,000 units for $80 each.
The incremental cost per unit associated with the special order is:

Analyze the evidence on virtual reality in comparison to in vivo exposure for treating anxiety problems.

Understand the principles of depth cues and how they are used to perceive depth in two and three dimensions.

Recognize the influence of attention and inattention on perception and identify instances of inattentional blindness.

Grasp the basic assumptions and contributions of Gestalt psychology to the understanding of perception.

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Definitions:

Long-Run Average Cost Curves

A graphical representation showing the average cost per unit of output over a long period, where all inputs, including capital, are variable.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, leading to a reduction in average costs per unit as output increases.

Diseconomies of Scale

The situation in which a business grows so large that the costs per unit increase, as opposed to economies of scale where costs per unit decrease with the increase in output.

Long-Run Average Cost Curve

A graphical representation that shows the minimum average cost at which any output level can be produced after all inputs are adjustable. It reflects economies and diseconomies of scale.