Increase. Product cost is a reflection of the cost to manufacture and ship the product, as well as middleman markups.
a decrease in equilibrium price and an increase in equilibrium quantity
John D. Rockefeller
The supply curve can shift due to changes in production costs, technology, or the number of suppliers. An increase in production costs (e.g., higher wages or raw material prices) typically causes the supply curve to decrease (shift left), indicating a reduced quantity supplied at each price level. Conversely, improvements in technology or an increase in the number of suppliers can lead to a decrease in production costs, causing the supply curve to increase (shift right), indicating a greater quantity supplied at each price level.
Environmental-protection regulations increase compliance costs and decrease economic competitiveness.
Economic costs is the decrease in goods and services that occurs as result of unemployment but non-economic cost is the increase in goods and services that occur as result of unemployment.
Freight costs are added to the cost of the merchandise. The total is typically referred to as the "landed" cost of the product.
selling price
a decrease in equilibrium price and an increase in equilibrium quantity
Variable cost per unit remains same per unit and has no impact on increase or decrease of sales.
The contribution ratio is the relationship between total sales revenue and total variable costs. If the components change, such as an increase in sales revenue or a decrease in variable costs, the contribution ratio will increase. Conversely, if sales revenue decreases or variable costs increase, the contribution ratio will decrease.
Economies of scale (costs decrease), diseconomies of scale (costs increase), constant returns to scale (costs stay the same)
This is generally done in areas such as manufacturing where processes can be more automated. By investing in machines and facilities, the fixed costs will increase, but variable labor costs will decrease.
The break-even point increases when fixed costs increase or selling price decreases. It decreases when fixed costs decrease or selling price increases. Changes in variable costs or sales volume can also impact the break-even point.
"Free on Board (FOB) destination" indicates that merchandise is free of transportation charges to the buyer. This means that the seller is responsible for the shipping costs and risk of loss until the goods reach the buyer's specified location.
Fixed costs are costs that do not change in total as the number of units increase or decrease. Examples include rent and utilities expense, manager salaries, etc. However, since the total cost does not change, the individual unit cost does change as units increase or decrease. Variable costs are costs that change in total as the number of units increase or decrease. An example might be direct labor, which increases based on number of hours work. However, total unit cost does not change.
Succeed 1. Increase sales 2. Decrease costs 3. Operate efficiently 4. Increase profit
John D. Rockefeller