Makwa Industries has developed two new products but has only enough plant capacity to introduce one product during the current year.The following data will assist management in deciding which product should be selected.Makwa's fixed overhead includes rent and utilities,equipment depreciation,and supervisory salaries.Selling and administrative expenses are not allocated to individual products. 
The difference between the $100 estimated selling price for Product W and its total cost of $88 represents
Definitions:
Factors of Production
Resources used in the production of goods and services, including labor, capital, land, and entrepreneurship.
Human Capital
The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value to an organization or society.
Production Possibilities
The various combinations of goods and services that can be produced within an economy given available resources and technology.
Circular-Flow Diagram
A visual model of the economy that illustrates the exchanges between households and firms through markets for products and resources.
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