ABC Electronics Wants Someone to Install a Top-Of-The-Line Burglar-Alarm System

question 24

Multiple Choice

ABC Electronics wants someone to install a top-of-the-line burglar-alarm system for its two buildings, a system that not only sounds an alarm but also simultaneously notifies authorities and the company president. Video surveillance of the premises should also be a capability of the security system. In order to obtain price quotes, what should ABC Electronics write?

• A) an unsolicited proposal
• B) an internal proposal
• C) an external proposal
• D) a request for proposals

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Definitions:

Fixed Costs

Costs that do not change with the level of output or sales, such as rent, salaries, and loan payments.

Variable Costs

Costs that change in proportion to the level of output or activity.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing to purchase at various prices.

Quantity Demanded

Quantity demanded is the total amount of a good or service that consumers are willing to purchase at a particular price over a specified period.