The south division of wiig company reported the following data for the current year. sales $2,950,000 variable costs 1,947,000 controllable fixed costs 605,000 average operating assets 5,000,000 top management is unhappy with the investment center’s return on investment (roi). it asks the manager of the south division to submit plans to improve roi in the next year. the manager believes it is feasible to consider the following independent courses of action.
1. increase sales by $300,000 with no change in the contribution margin percentage.
2. reduce variable costs by $155,000.
3. reduce average operating assets by 3%.

answer; buyer guide;

the correct answer for apex is “ doubling a recipe and figuring out how many cups of paint to use are both examples of using math skills”.

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.