Durable Toys Inc

question 19

Short Answer

Durable Toys Inc. wants to calculate from recent production data the monthly fixed costs and unit variable costs on its Mountain Trike product line. In the most recent month, it produced 530 Trikes at a total cost of $24,190. In the previous month, it produced 365 Trikes at a total cost of $18,745. What are the fixed costs per month and the unit variable costs? Hint: Recall that Total costs = Fixed costs + (Unit variable costs) × (Number of units produced)

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Definitions:

Evaluating Effectiveness

The process of assessing how well a project, program, or action has achieved its goals and objectives.

Bargaining Zone

The space between one party’s minimum reservation point and the other party’s maximum reservation point.

Minimum Reservation Point

The lowest acceptable outcome or value that a negotiator is willing to accept in a negotiation process.

Low-Context Culture

A culture in which communication is expected to be explicit and direct, with less reliance on context, non-verbal cues, and subtext to convey meaning.