Gelb company currently manufactures 44,000 units per year of a key component for its manufacturing process. variable costs are $4.05 per unit, fixed costs related to making this component are $73,000 per year, and allocated fixed costs are $78,500 per year. the allocated fixed costs are unavoidable whether the company makes or buys this component. the company is considering buying this component from a supplier for $3.50 per unit. calculate the total incremental cost of making 44,000 and buying 44,000 units. should it continue to manufacture the component, or should it buy this component from the outside supplier? (round "purchase price per unit" answer to 2 decimal places.)

Total marketing effort is a term used to describe the critical decision factors that affect demand: price, advertising, distribution, and product quality. define the variable x to represent total marketing effort. a typical model that is used to predict demand as a function of total marketing effort is based on the power function: d = axb suppose that a is a positive number. different model forms result from varying the constant b. sketch the graphs of this model for b = 0, b = 1, 0< b< 1, b< 0, and b> 1. (we encourage you to use excel to do this.) what does each model tell you about the relationship between demand and marketing effort? what assumptions are implied? are they reasonable? how would you go about selecting the appropriate model?