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Author Question: Cooling systems Carl is the lead engineer on a smart HVAC cooling system that works with minimal ... (Read 356 times)

Tazate

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on: Jul 1, 2018
Cooling systems Carl is the lead engineer on a smart HVAC cooling system that works with minimal energy and is voice activated. Given the revolutionary nature of the system, it took many failed tries to create a system that actually worked, a cost of 30,000 . Now each unit sells for 6500 and it costs 5000 in raw materials and labor to produce. What costs should Carl take into consideration when deciding to service the order for an additional unit?

Question 2

The __________ declared that some forms of price discrimination is illegal, especially when it decreases competition.
 a. Robinson-Patman Act
 b. Sherman Antitrust Act of 1890.
 c. Merger Act
 d. Federal Trade Commission Act.


sultansheikh

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Reply #1 on: Jul 1, 2018
Answer to Question 1

He should only take into account the actual costs for producing another unit, 5000 . not the 30,000 in experimentation costs since those costs are already sunk and should not effect whether or not he produces an additional unit. Even though 30,000 is a large amount, these costs have already been incurred and irreversible at this point.

Answer to Question 2

a


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