James March and Herbert Simon use the term to describe how decision makers simplify the process by screening out silly options and stop searching when they come upon a satisfactory alternative, even if it is not an exhaustive search.

Satisficing

Explanation:

Satisficing means that decision makers choose the first solution alternative that satisfies minimal decision criteria.

Results are below.

Explanation:

Giving the following information:

Direct materials $5.20

Direct labor $ 3.70

Variable manufacturing overhead $1.30

Fixed manufacturing overhead $ 33,750

Units produced= 7,500

We will calculate the product cost based on absorption costing and variable costing. The first one includes the fixed manufacturing overhead as a product cost.

Variable costing method:

Total cost= (5.2 + 3.7 + 1.3)*7,500

Total cost= $76,500

Absorption costing method:

Tota cost= 76,500 + 33,750

Total cost= $110,250