Pizza Pizza Developes a Microwave Pizza Oven That Cook a Large

question 99

Multiple Choice

Pizza Pizza developes a microwave pizza oven that cook a large pizza in 23 seconds. This cost-saving technology causes the price of pizza to

• A) rise, and quantity demanded decreases.
• B) rise, and quantity demanded increases.
• C) fall, and quantity demanded decreases.
• D) fall, and demand decreases.
• E) fall, and quantity demanded increases.

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Definitions:

Break-even Sales

The amount of revenue needed to cover total costs, at which point a business neither makes a profit nor incurs a loss.

Overall

Pertaining to the total, aggregate, or general effect, situation, or assessment.

Absorption Costing

In this accounting method, the complete cost of manufacturing a product, taking into account direct materials, direct labor, along with variable and fixed overheads, is included in the product's price.

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product cost calculations, excluding fixed overhead.