Co makes two products: tables and chairs, which must be processed through assembly and finishing department. Assembly department is available for 60 hours in every production period, while the finishing department is available for 48 hours of work. Manufacturing one table requires 4 hours in the assembly and 2 hours in the finishing. Each chair requires 2 hours in

Co makes two products: tables and chairs, which must be processed through assembly and finishing department. Assembly department is available for 60 hours in every production period, while the finishing department is available for 48 hours of work. Manufacturing one table requires 4 hours in the assembly and 2 hours in the finishing. Each chair requires 2 hours in

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 9E

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Mutale, a lawyer, working for a large law firm and earning K60, 000 per year, is contemplating setting up his own law practice. He estimates that renting an office would cost K10,000 per year, hiring a legal secretary would cost K20,000 per year, and purchasing supplies, paying for electricity, telephone and so forth would cost another K5, 000 per year. The lawyer estimated that his total revenue for the year would be K100, 000. a) How much are the explicit costs of running the law firm? b) How much are the implicit costs? c) How much are the economic costs? d) Should the lawyer go ahead to set up the law firm?
Suppose you have a production technology that can be characterized by a learning curve. Every time you increase production by one unit, your costs decrease by PhP5. The cost of the first unit you produce is PhP65. There was a proposal for you to work on a project for five units, what is your break-even price? Suppose that if you get the contract, you estimate that you can win another project for three more units. Now, what is your break-even price for those three units?
A local art association holds an annual fair that has expenses of $5247. Based on prior history, the art association expects to make $17429 from the sale of food. This year, the art association would like to make a total profit of $27282 to help pay for an after school program for at risk kids. The fair usually charges an admission of $7. To meet the profit goal, how many people must attend the art fair this year?
In the fall, Jay Thompson decided to live in a university dormitory. He signed a dorm contract under which he was obligated to pay the room rent for the full college year. One clause stated that if he moved out during the year, he could sell his dorm contract to another student who would move into the dormitory as his replacement. The dorm cost was $6300 for the two semesters, which Jay had already paid. A month after he moved into the dorm, he decided he would prefer to live in an apartment. That week, after some searching for a replacement to fulfill his dorm contract, Jay had two offers. One student offered to move in immediately and to pay Jay $500 per month for the seven remaining months of the school year. A second student offered to move in the second semester and pay $2800 to Jay. Jay estimates his food cost per month is $350 if he lives in the dorm and $300 if he lives in an apartment with three other students. His share of the apartment rent and utilities will be $450 per…
Pieces moved per day between work areas are Three departments-milling (M), drilling (D), and sawing (S)-are assigned to three work areas in Victor Berardis's machine shop in Vent, Ohio. The number of work pieces moved per day and the distances between the centers of the work areas, in feet, are shown to the right. M 22 34 20 It costs $2 to move 1 workpiece 1 foot. The total material handling cost of the layout = $ whole number). (enter your response as a %3D Distances in feet between centers of the work areas are: M MDS MDS
Mary, a law student in a University, wants to buy a book on Negotiable Instruments. To do this, she thought of selling cakes to her classmates and schoolmates. To bake these cakes, she rents an oven at P1,400 and another P300 for the rental of the baking pan. She spends a total of P600 for the ingredients. She sells the cake at P300 each. How many cakes does she need to sell to break even? (Unit used is cakes. For example if your answer is 10, then write 10 cakes).
ABC company creates specialty shipping bags that they sell to pharmaceutical companies across the globe. With their current equipment, ABC can produce 12,000 shipping bags for every 10 bundles of materials purchased. Every month (20 working days), ABC purchases 100 bundles of materials. Each bundle requires one (1) labor minute to process, and every labor hour costs an average of $14.00. Each week (5 working days), ABC pays $5,000 inoverhead costs, and equipment costs $600 a day to operate. (a). How many shipping bags does ABC produce in a standard month (20 working days)? Each workday (8 hours)? (b). What is the single-factor productivity for labor, per workday (8 hours)? Whatis the multi-factor productivity, for every dollar spent per shipping bag?
show solution An oil refinery produces one base type of crude oil. The total cost is given by the equation Total Cost, TC = 50,000+20.2D +0.0001D2. The sales price in dollars per barrel is 35. At what level of production in barrels/week is cost/barrel minimum? What is the minimum cost per barrel? What is the maximum weekly profit that the company can make? At what level of production is the maximum weekly profit attainable? and Over what range of production is profit possible? Express answers in whole numbers and write the numerical values only.
Factory X can produce skis or snowboards. If all factory time is devoted to producing skis, 400 pairs of skis per day are produced. If the factory devotes all time to producing snowboards, 700 snowboards per day are produced. Snowboards 700 400 Pairs of Skis A recent technological advancement has positively impacted factory operations. This has resulted in an increase production of snowboards by 50%. What is the new maximum number of skis that can be produced per day?
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Mang Isko, a fisherman, is paid ₱180.00 for every 1 kilo of fish he catches. If within the day, he is able to catch 50 kilos of fish, how much is his gross pay for the day?
C&A Fast Food has four activities in serving a customer: greet customer, take order, process order, and deliver order. Each activity is staffed by one employee (for a total of four employees). The processing time for each activity is given as follows: Greet customer Take order Process order Deliver order Activity Processing time per customer 2 seconds 30 seconds 60 seconds 5 seconds Assume demand is unlimited. Each employee is paid $7.50 per hour. If one additional employee is added to the bottleneck activity, what will be the cost of direct labor in S per customer?