A business received an offer from an exporter for 30,000 units of product at $16 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: Domestic unit sales price $22 Unit manufacturing costs: Variable 11 Fixed 6 What is the differential cost from the acceptance of the offer?
A) $120,000
B) $330,000
C) $300,000
D) $510,000
B
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Manuel's vacation to Chicago for $1,000 for three nights in a four-star hotel on Michigan Avenue included airfare and accommodation. If these services were availed individually, it would have been more expensive. This form of pricing is referred to as
A. leader pricing. B. zone pricing. C. odd pricing. D. price bundling. E. variable bundling.
According to the Institute of Management Accountants (IMA) Statement of Ethical Professional Practice, performing professional duties in accordance with relevant laws, regulations and technical standards is a component of which standard?
a. Competence b. Confidentiality c. Integrity d. Credibility
Cami has noted that her industrial processing company is dumping toxic chemicals into a nearby river but hiding the action through bookkeeping tricks. She has ample evidence of the behavior and is ready to make her first move by calling a government whistleblower hotline. But when she consults an attorney, she is advised not to make the call yet. What did the attorney likely tell her?
a. Whistleblowing should be limited to financial services fraud. b. Whistleblowing should not be pursued in this case because Cami is likely to lose her job. c. Cami has not yet demonstrated that the behavior is causing direct harm to people. d. Cami has not yet tried to communicate her concerns to anyone inside the company.
How does total variable cost respond when volume increases?
What will be an ideal response?