A favorable direct materials price variance and an unfavorable direct materials quantity variance might indicate which of the following? A. More expensive, superior materials requiring less than the standard amount were used in production. B. Less expensive, inferior materials requiring less than the standard amount were used in production. C. More expensive, superior materials requiring more than the standard amount were used in production. D. Less expensive, inferior materials requiring more than the standard amount were used in production.

You are the owner of a local honda dealership. unlike other dealerships in the area, you take pride in your “no haggle” sales policy. last year, your dealership earned record profits of $1.5 million. however, according to the local chamber of commerce, your earnings were 10 percent less than either of your competitors. in your market, the price elasticity of demand for midsized honda automobiles is 4.5. in each of the last five years, your dealership has sold more midsized automobiles than any other honda dealership in the nation. this entitled your dealership to an additional 30 percent off the manufacturer’s suggested retail price (msrp) in each year. taking this into account, your marginal cost of a midsized automobile is $11,000. what price should you charge for a midsized automobile if you expect to maintain your record sales?