I need help with questions 16, 17 .. Price-taker/(Target costing) are individual
ID: 2457013 • Letter: I
Question
I need help with questions 16, 17 .. Price-taker/(Target costing) are individuals in a market who: select a price from a wide range of alternatives. select the lowest price available in a competitive market. select the average of prices available in a competitive market. have no ability to affect the price of a good in a market. select the price that maximizes profit. Max's Donuts budgets the following costs for the production of 36,000 boxes of donuts next year: Rent, $20,000; other fixed costs, $6,000: direct materials, $54,000, and direct labor, $36,000. The normal selling price is $4.00 per box. A new convenience store has offered to pay Max's $3.00 per box to supply them with 10,000 boxes of donuts during the year. Assuming that Max's has the capacity to fill this order along with their other production and that accepting this order will not cause problems with any of their other customers, should Max's Donuts accept this order Yes or No: Why______ Ten Shoe Company is trying to decide whether or not to continue making bowling shoes. The following information is available for the segments. Assume that all direct fixed costs could be avoided if a segment is dropped and that the total common fixed costs would remain unchanged if the bowling shoes were dropped.Explanation / Answer
16 A Scarcity of resources is one of the more basic concepts of economics the manner in which the prices of commodities affect the demand and supply of goods and services B A large number of consumers with the willingness and ability to buy the product at a certain price, and a large number of producers with the willingness and ability to supply the product at a certain price c The profit motive. Free markets form when the profit motive can be satisfied in available in average of prices d In order to affect the proce of the good the product musst be superiar in the markit e Lower the cost of production can meat higher or maximuzes profits 17 Yes