Gibson Modems has excess production capacity and is considering the possibility of making and selling paging equipment. The following estimates are based on a production and sales volume of 1,200 pagers:
Unit-level manufacturing costs are expected to be $22. Sales commissions will be established at $1.2 per unit. The current facility-level costs, including depreciation on manufacturing equipment ($62,000), rent on the manufacturing facility ($52,000), depreciation on the administrative equipment ($12,600), and other fixed administrative expenses ($72,950), will not be affected by the production of the pagers. The chief accountant has decided to allocate the facility-level costs to the existing product (modems) and to the new product (pagers) on the basis of the number of units of product made (i. e., 5,200 modems and 1,200 pagers).
Required:
a. Determine the per-unit cost of making and selling 1,200 pagers. (Do not round intermediate calculations. Round your answer to 3 decimal places.)
b. Assuming the pagers could be sold at a price of $36 each, should Gibson make the pagers?

Cynthia is a hospitality worker in the lodging industry who prefers to cater to small groups of people. she might want to open a

Suppose you win a small lottery and have the choice of two ways to be paid: you can accept the money in a lump sum or in a series of payments over time. if you pick the lump sum, you get $2,950 today. if you pick payments over time, you get three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. 1) at an interest rate of 6% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 2) at an interest rate of 9% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 3) years after you win the lottery, a friend in another country calls to ask your advice. by wild coincidence, she has just won another lottery with the same payout schemes. she must make a quick decision about whether to collect her money under the lump sum or the payments over time. what is the best advice to give your friend? a) the lump sum is always better. b) the payments over time are always better. c) it will depend on the interest rate; advise her to get a calculator. d) none of these answers is good advice.

In microeconomics, the point at which supply and demand meet is called the blank price