Incremental profit Essay Example for Free

Incremental profit EssayDistinguish amidst the followinga) Industry gather up and Firm (Company) demand, b) Short-run demand and retentive run demand, and c) Durable goods demand and Non-durable goods demand.2 . What are the problems faced in determining the demand for a durable good? Illustrate with example of demand for households refrigerator or television set.3 . Analyze the method by which a firm can allocate the given advertising budget between different media of advertisement.4 . What kind of relationship would you postulate between short-run and long-run average cost curves when these are not U-shaped as suggested by the new-fangled theories?5 . How do demand forecasting methods for new products vary from those for established products?6 . What are the different methods of measuring national income? Which methods have been followed in India?7 . What do you understand by the investment multiplier? In what way does it defend the policy of public works on the part of the st ate during clientele depression?8 . Discuss the various phases of business cyclea. Are cyclical fluctuations necessary for economic growth? b. Suggest appropriate fiscal and monetary policies for depressionAssignment B allCase Study negatron Control, Inc., sells voltage regulators to other manufacturers, who then customize and distribute the products to quality assurance labs for their reasonable test equipment. The yearly volume of output is 15,000 unit of measurements. The selling price and cost per unit are shown belowSelling price$200Costs aspire material$35Direct labor50Variable overhead25Variable selling expenses25Fixed selling expenses15 one hundred fiftyUnit profit before tax$ 50Management is evaluating the alternative of performing the necessary customizing to allow Electron Control to sell its output forthwith to Q/A labs for $275 per unit. Although no added investment is required in productive facilities, additional processing costs are estimated asDirect labor$25 pe r unitVariable overhead$15 per unitVariable selling expenses$10 per unitFixed selling expenses$100,000 per yearCalculate the incremental profit Electron Control would earn by customizing its instruments and marketing directly to end users.