[The Following Information Applies to the Questions Displayed Below

question 45

Multiple Choice

[The following information applies to the questions displayed below.]
Burns Industries currently manufactures and sells 20,000 power saws per month,although it has the capacity to produce 35,000 units per month.At the 20,000-unit-per-month level of production,the per-unit cost is $65,consisting of $40 in variable costs and $25 in fixed costs.Burns sells its saws to retail stores for $80 each.Allen Distributors has offered to purchase 5,000 saws per month at a reduced price.Burns can manufacture these additional units with no change in its present level of fixed manufacturing costs.
-Which of the following is not a relevant factor in Burns' decision concerning whether to accept the special order from Allen?

• A)The opportunity cost involved in accepting Allen's order.
• B)The incremental cost of manufacturing an additional 5,000 saws per month.
• C)The $65 average cost per unit to manufacture a power saw.
• D)Where and at what price Allen intends to sell the saws.

Distinguish between deductive and inductive reasoning in research.

Identify variables and understand their roles in sociological studies.

Grasp the concept and importance of operationalization in research.

Recognize the significance of reliability and validity in research methods.

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Definitions:

Immigration

The process of permanently settling in a country that is not one's own.

Country A

A placeholder name often used in hypothetical economic models or discussions to refer to an unspecified country.

Business Income

The profit or loss generated from a company's activities after deducting expenses.

Emigration

The act of leaving one's resident country or region with the intent to settle elsewhere.