20) Rachel and Joey went to dinner and incurred the following costs: Joey's total dinner cost:$30.00 Rachel's total dinner cost:$21.00 Required: Compute the average cost of dinner. If they...

20) Rachel and Joey went to dinner and incurred the following costs:

Joey's total dinner cost:$30.00

Rachel's total dinner cost:$21.00

Required:

Compute the average cost of dinner. If they each pay the average cost of dinner, calculate the amount of Rachel's cross-subsidization to Joey.

21) What should managerial accountants understand when prices of their products and services are determined by the market based on competition among companies in the marketplace?

22) What are the strategic consequences of product undercosting and overcosting?