Andreasen corporation manufactures thermostats for office buildings. the following is the cost of each unit. materials $ 36.00 labor 14.00 variable overhead 4.00 fixed overhead ($1,890,000 per year; 105,000 units per year) 18.00 total $ 72.00 simpson company has approached andreasen with an offer to buy 8,000 thermostats at a price of $60 each. the regular price is $100. andreasen has the capacity to produce the 8,000 additional units without affecting its current production of 105,000 units. simpson requires that each unit use its branding, which requires a more expensive label, resulting in an additional $2.00 per unit material cost. the labor cost of affixing the label will be the same as for the current models. the simpson order will also require a one-time rental of packaging equipment for $30,000. required: a. prepare a schedule to show the impact of filling the simpson order on andreasen's profits for the year. b. do you agree with the decision to accept the special order? c. considering only profit, determine the minimum quantity of thermostats in the special order that would make it profitable, assuming capacity is available.

1. all other things equal, according to the law of demand, when the price of a good falls, the demand for the good falls the demand for the good rises the quantity demanded of the good falls the quantity demanded of the good rises 2. when a market is in equilibrium, the quantity of the good that buyers are willing and able to buy exactly equals the quantity that sellers are willing and able to sell cannot be determined is less than the quantity that sellers are willing and able to sell is greater than the quantity that sellers are willing and able to sell 3. which of the following factors does not influence the demand for a good or service? consumer (buyer) income the price of related goods the number of sellers buyer expectations 4. when the number of sellers in a market increases, demand rises supply rises the price rises, all else equal the number of buyers falls

Oz makes lion food out of giraffe and gazelle meat. giraffe meat has 18 grams of protein and 36 grams of fat per pound, while gazelle meat has 36 grams of protein and 18 grams of fat per pound. a batch of lion food must contain at least "46,800" grams of protein and 70,200 grams of fat. giraffe meat costs $1/pound and gazelle meat costs $2/pound. how many pounds of each should go into each batch of lion food in order to minimize costs? hint [see example 2.]

In ledland, unemployed adults receive government assistance. to reduce unemployment, the government proposes to supplement the income of those who accept jobs that pay less than government assistance, thus enabling employers to hire workers cheaply. however, the supplement will not raise any worker's income above what government assistance would provide if he or she were not gainfully employed. therefore, unemployed people will have no financial incentive to accept jobs that would entitle them to the supplement.which of the following, if true about ledland, most seriously weakens the argument of the editorial? (a) the government collects no taxes on assistance it provides to unemployed individuals and their families.(b) neighboring countries with laws that mandate the minimum wage an employer must pay an employee have higher unemployment rates than ledland currently has.(c) people who are employed and look for a new job tend to get higher-paying jobs than job seekers who are unemployed.(d) the yearly amount unemployed people receive from government assistance is less than the yearly income that the government defines as the poverty level.(e) people sometimes accept jobs that pay relatively little simply because they enjoy the work.