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What price should be set under marginal cost pricing

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Question -

Q1. Businesses hold short-term securities for which of the following reasons?

As a substitute for cash

As a temporary repository for cash being accumulated for a specific purpose

As a buffer against bad debt losses

Answers (a) and (b)

Answers (a), (b), and (c)

Q2. Assume a clinical laboratory is considering a new test. Here are the key assumptions: annual fixed direct costs = $20,000, annual overhead allocation = $10,000, variable cost per test = $5, and expected volume = 5,000 tests. What price should be set under marginal cost pricing?

$11

$7

$9

$13

$5

Reference no: EM132441711

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