Kando company incurs a $11.00 per unit cost for product a, which it currently manufactures and sells for $13.50 per unit. instead of manufacturing and selling this product, the company can purchase it for $6.00 per unit and sell it for $11.30 per unit. if it does so, unit sales would remain unchanged and $6.00 of the $11.00 per unit costs of product a would be eliminated.
1. prepare incremental cost analysis. should the company continue to manufacture product a or purchase it for resale? (round your answers to 2 decimal places.)
in the format below:
manufacture a purchase product b
sales
costs
aviodable cost
unavoidable costs
cost to purchase
totals costs
sales
the company

Suppose there are three types of consumers who attend concerts at your university’s performing arts center: students, staff, and faculty. each of these groups has a different willingness to pay for tickets; within each group, willingness to pay is identical. there is a fixed cost of $1,000 to put on a concert, but there are essentially no variable costs. for each concert: i. there are 140 students willing to pay $20. (ii) there are 200 staff members willing to pay $35. (iii) there are 100 faculty members willing to pay $50. a) if the performing arts center can charge only one price, what price should it charge? what are profits at this price? b) if the performing arts center can price discriminate and charge two prices, one for students and another for faculty/staff, what are its profits? c) if the performing arts center can perfectly price discriminate and charge students, staff, and faculty three separate prices, what are its profits?