Answer:
= $132,000.
Explanation:
There are two types of fixed costs, general fixed cost and specific fixed cost.
<u><em>General fixed costs </em></u><em>are those that cannot be traced to a specific product rather they are incurred for the benefit of all of the product being produced. For example,the rent of the factory where three products are being produced</em>
So they are unavoidable should a product be ceased for production that is they would still be incurred either way.
<u>S</u><u><em>pecific fixed costs </em></u><em>are those incurred specifically for a particular product and as such they would be saved should the product be discontinued. For example , if a special machine that cost $4000 a month to rent is used to produce a product. The $4000 would be saved should the production of the product ceases</em>
The net operating cost of the company would increase by the amount of the avoidable specific fixed cost:
=$90,000 + $42,000
= $132,000.
Answer:
B. each customer's reservation price.
Explanation:
Reservation price is the highest amount a buyer would be willing to pay for a good or service.
I hope my answer helps you
Honestly you should answer this one yourself it seems like a question that contains your own answer
Answer: when the research costs more than the potential savings
Explanation:
I believe it would be capital. You have to invest in the jewels to complete the cases.
