Respuesta :
Answer:
the farmer's total revenue when she uses the direct channel = 400 x $2.49 = $996
if she uses the indirect channel, her total revenue = 650 x $1.63 = $1,059.50
her total revenue will increase when selling to he supermarkets, but also her variable production costs will increase. This means that it is probable that her total contribution margin decreases even if total revenue decreases.
The farmer's total revenue when she uses the direct channel is $996 and the difference in revenue if she makes the change will be $63.5
What do you mean by Total revenue?
Revenue is the total amount of sales of goods and services. It is calculated by multiplying the total amount of goods and services sold at the price of goods and services.
Total revenue when she uses the direct channel is $996
[tex]\rm\, Total \,Revenue = 400 \times \$2.49 \\\\\rm\, Total \,Revenue = \$996[/tex]
If she uses the indirect channel, her total revenue is $1,059.50.
[tex]\rm\,Total \,Revenue = 650 \times \$1.63\\\\\rm\,Total \,Revenue = \$1,059.50[/tex]
The difference in revenue between direct selling and indirect selling:
[tex]\rm\, \$1,059.50 - \$996 = \$63.5[/tex]
The farmer's total revenue will increase when selling to the supermarkets, but also her variable production costs will increase which has to be kept in mind while choosing indirect selling.
Therefore, the farmer should keep the variable factor costs in mind before selecting indirect selling as the revenue might increase but the percentage of increase probably may not be high.
To learn more about total revenue, refer to the link:
https://brainly.com/question/25623677
