Geneva company manufactures dolls that are sold to various customers. the company works at full capacity for half the year to meet peak demand, and operates at 80% capacity for the other half of the year. the following information is provided: units produced and sold 600,000 units selling price $ 35 / unit variable manufacturing costs $ 20 / unit fixed manufacturing costs $ 1,200,000 / yr. variable selling and administrative costs $ 6 / unit fixed selling and administrative costs $ 950,000 / yr. geneva receives a purchase order to make 5,000 dolls as a one-time event. the good news is that this order is during a period when geneva does have excess capacity. what is the lowest selling price geneva should accept for this purchase order? $35.00 $26.00 $29.50 $23.50

Wo firms, a and b, each currently dump 50 tons of chemicals into the local river. the government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution dumped into the river. it costs firm a $100 for each ton of pollution that it eliminates before it reaches the river, and it costs firm b $50 for each ton of pollution that it eliminates before it reaches the river. the government gives each firm 20 pollution permits. government officials are not sure whether to allow the firms to buy or sell the pollution permits to each other. what is the total cost of reducing pollution if firms are not allowed to buy and sell pollution permits from each other? what is the total cost of reducing pollution if the firms are allowed to buy and sell permits from each other? a. $3,000; $1,500 b. $4,500; $3,500 c. $4,500; $4,000 d. $4,500; $2,500