Answer:
1.
Customers, competitors and costs all are affected by demand.
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2.
Selling price per unit = ($ 7,50,000 +$ 4,50,000) / 2,40,000 = $ 5 per unit @ 60% discount
= $ 3 per unit for special order
Contribution = selling price - variable cost = $ 3 - $ 2.50 ($ 7,50,000/3,00,000) = $ 0.5
Profit will be increased by = $0.5*60,000 = $ 30,000
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3.
Material storage activity used in Nile's production process is non value-adding.
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5.
Total cost of the product = variable cost + fixed cost
= $ 50*1,00,000 u + $ 10,00,000
= $ 50,00,000 +$ 10,00,000 = $ 60,00,000
cost per unit = $ 60,00,000/1,00,000 = $ 60
Selling price per unit = 10% on total cost = $60+$60*10/100 = $ 60+ $ 6 =$ 66 per unit
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6.
Given data:
Gross profit = revenue - cost of goods
0.4 x= x - $ 12
x - 0.4 x = $ 12
0.6 x = $ 12
Therefore, x = $ 12/0.6 = $ 20
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