priee and quantity effeets Ralph purchases prefabricated containers, assembles them and sells them to local merchants. Assembly

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priee and quantity effeets Ralph purchases prefabricated containers, assembles them and sells them to local merchants. Assembly errors occur on oceasion, and the affected containermust be scrapped. Ralph figures this happens 5% of the time. The prefabricated containers cost 100 per unit. The material cost, then, is estimated at 1oo(1.05)q, where q denotes the number of units assembled. During areeent period, 900 units were successfully assembled. 930 prefabricated containers were used, costing a total of 96,000. There is no beginning or ending work-in-process inventory. Explain Ralph' s performanee in terms of priee and quantity effects.AppendixLO1

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