TIL U TVU , OUVOIIIIIIIIL LUULTUUVIL NO. Question 01: The Virtue of Free Markets: Review the...
Please answer a-d Assume that a business firm finds that its profit ia greatest when it produoes $40 worth of product A. Suppose also thet each of the three techniques shown in the table below will produce the deslred output LO3 Resource units required Labor Land Capital Entrepreneurial ability 3 2 a. With the resource prices shown, which technique will the firm choose? Why? Will production using that technique entail profit or loss? What will be the amount of that...
Plant Efficiency Change In the baseline scenario, we assume that all plants are equally efficient regardless of location. In reality, a potential tradeoff in making the decision to relocate globally is that a foreign plant may have cheaper costs but be less efficient. In this scenario, the Developtopian plant only runs at 80% efficiency (for every 100 sets of inputs, only 80 widgets are made). Assuming this inefficiency only affects raw materials and labor, what is the impact on where...
The following is a paper and pencil exercise. The goal is to illustrate some basic concepts in global sourcing and logistics and to examine what happens when conditions change. INTRO: You are running a manufacturing company that has decided to make a new product – a widget (my apologies for the cliché). Your company wishes to sell the widgets in two countries – Freetradia and the Isolated States (as the names imply, Freetradia is an open embracer of the global...
Duo Company manufactures two products, Uno and Dos. Contribution margin data follow. Uno Dos Unit sales $ 13.00 $ 31.00 Less variable cost: Direct material $ 7.00 $ 5.00 Direct labor 1.00 6.00 Variable overhead 1.25 7.50 Variable selling and administrative cost 0.75 0.50 Total variable cost $ 10.00 $ 19.00 Unit contribution margin $ 3.00 $ 12.00 Duo company’s production process uses highly skilled labor, which is in short supply. The same employees work on both products and earn...
cte 's production manager reports that the short-run Podinction relationship between the number of labor units that may be used 25. The s as tollowand the total product that maty be produced per period of time re Total Output 2 Labor Units 2 3 10 15 24 25 8 The wage rate per unit of iabor is $10.00, and the unit cost of raw material is $100, the total fixed cost is $5.00 and the firm needs one unit of...
vimizing rule for all firms in resource markets is The profit maximizing a) mrc = mvp b) mc>mp c) trc > trp di mic sp Figure 13.1 00+ Input price (Dollars per unit) - ---- -- MRC EKM -- -- ----MRP 10 20 30 40 50 Units of input Figure 13.1 shows marginal revenue product and marginal resource cost curves for a certain firm. In order to maximize profit, the firm should a) hire 30 units of this resource. b)...
Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 103,200 units per year is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 2.00 $ 3.00 $ 1.00 $ 4.85 $ 1.60 $ 2.00 The normal selling price is $23.00 per unit. The company's capacity is 118,800 units per year. An order...
Required information (The following information applies to the questions displayed below.] Spiffy Shades Corporation manufactures artistic frames for sunglasses. Talia Demarest, controller, is responsible for preparing the company's master budget. In compiling the budget data for 20x1, Demarest has learned that new automated production equipment will be installed on March 1. This will reduce the direct labor per frame from 3.0 hours to 2.75 hours. Labor-related costs include pension contributions of $1.05 per hour, workers' compensation insurance of $0.75 per...
Per unit cost Per period Cost Direct Material 3.00 Direct Labor 7.00 Variable Manufacturing Overhead 1.00 Fixed Manufacturing Overhead 40,000 Variable Selling expense 2.00 Fixed Selling expense 15,000 The Selling price per unit is $30 and the company sold 20,000 units. What is the contribution margin per unit? Answer:
Per unit cost Per period Cost Direct Material 3.00 Direct Labor 7.00 Variable Manufacturing Overhead 1.00 Fixed Manufacturing Overhead 40,000 Variable Selling expense 2.00 Fixed Selling expense 15,000 The Selling price per unit is $35.00 and the company made and sold 10,000 units. What is the gross profit per unit? Answer: age