Factory company makes two products, x and z. x is being introduced this period, and z has been in production for 2 years. for the period about to begin, 1,000 units of each product are to be manufactured. assume that the only relevant overhead item is the cost of engineering change orders; that x and z are expected to require eight and two change orders, respectively; that x and z are expected to require 2 and 3 machine hours, respectively; and that the cost of a change order is $600. if factory applies engineering change order costs on the basis of machine hours, the cross-subsidy per unit arising from this peanut-butter costing approach is

R& m chatelaine is one of the largest tax-preparation firms in the united states. it wants to acquire the tax experts, a smaller rival. after the merger, chatelaine will be one of the two largest income-tax preparers in the u.s. market. what should chatelaine include in its acquisition plans? it should refocus its attention from the national to the international market. in addition to acquiring the tax experts, it should also determine the best way to drive independent "mom and pop" tax preparers out of business. chatelaine will need to explain to the federal trade commission how the acquisition will not result in an increase in prices for consumers. chatelaine should enter a price-based competition with its other major competitor to force it out of business and become a monopoly.