Aurora Enterprises incurs costs of $38 per unit ($27 variable and $11 fixed) to make a product that normally sells for $56. A wholesaler offers to buy 3,500 units for $36 each. This special order will result in additional shipping costs of $1.15 per unit. Assuming Aurora has adequate manufacturing capacity, it should

Aurora should reject the offer because it would lead to a loss of (-$11,025)

Explanation:

Given the information above, we can sum up the variable costs to be;

Variable costs = $38 + $1.15

= $39.15

Therefore;

Gain or loss would be;

= [3,500 × $36] - [3,500 × $39.15]

= $126,000 - $137,025

= -$11,025

With regards to the above, Aurora should reject the offer because it will lead to a loss of $11,025

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

answer; commerce clearing house;