Suppose you have a monthly entertainment budget that you use to rent movies and purchase cds. you currently use your income to rent 5 movies per month at a cost of $5.00 per movie and to purchase 5 cds per month at a cost of $10.00 per cd. your marginal utility from the fifth movie is 50 and your marginal utility from the fifth cd is 96. are you maximizing utillty? you are? a. maximizing utility because you are consuming an equal number of movies and cds. b. not maximizing utility because the marginal utility per dollar spent on movles is not equal to the marginal utility per dollar spent on cds. c. not maximizing utility because the marginal utity of movies is not equal to the marginal utility of cds. d. maximizing utility because you are spending all of your entertalnment budget. e. not maximizing utility because the price of movies is not equal to the price of cds.

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Walsh company manufactures and sells one product. the following information pertains to each of the company’s first two years of operations: variable costs per unit: manufacturing: direct materials $ 25 direct labor $ 12 variable manufacturing overhead $ 5 variable selling and administrative $ 4 fixed costs per year: fixed manufacturing overhead $ 400,000 fixed selling and administrative expenses $ 60,000 during its first year of operations, walsh produced 50,000 units and sold 40,000 units. during its second year of operations, it produced 40,000 units and sold 50,000 units. the selling price of the company’s product is $83 per unit. required: 1. assume the company uses variable costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 2. assume the company uses absorption costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 3. reconcile the difference between variable costing and absorption costing net operating income in year 1.

What is the relationship among market segmentation, target markts, and consumer profiles?