### Efficient in terms of pizza product per worker

Assignment Help Managerial Accounting
##### Reference no: EM13816040

Problem 1:

William is the owner of a small pizza shop and is thinking of increasing products and lowering costs. William's pizza shop owns four ovens and the cost of the four ovens is \$1,000. Each worker is paid \$500 per week.

Workers Employed               QTY of Pizzas Produced Per Week

0                                                       0

1                                                      75

2                                                     180

3                                                     360

4                                                     600

5                                                     900

6                                                   1140

7                                                   1260

8                                                   1360

Show all of your calculations and processes. Describe your answer for each question in complete sentences, whenever it is necessary.

1. Which inputs are fixed and which are variable in the production function of William's pizza shop? Over what ranges do there appear to be increasing, constant, and/or diminishing returns to the number of workers employed?

2. What number of workers appears to be most efficient in terms of pizza product per worker?

3. What number of workers appears to minimize the marginal cost of pizza production assuming that each pizza worker is paid \$500 per week?

4. Why would marginal productivity decline when you hire more workers in the short run after a certain level?

How would expanding the business affect the economies of scale? When would you have constant returns to scale or diseconomies of scale? Describe your answer.

Problem 2:

The Paradise Shoes Company has estimated its weekly TVC function from data collected over the past several months, as TVC = 3450 + 20Q + 0.008Q2 where TVC represents the total variable cost and Q represents pairs of shoes produced per week. And its demand equation is Q = 4100 - 25P. The company is currently producing 1,000 pairs of shoes weekly and is considering expanding its output to 1,200 pairs of shoes weekly. To do this, it will have to lease another shoe-making machine (\$2,000 per week fixed payment until the lease period ends).

Show all of your calculations and processes. Describe your answer for each item below in complete sentences, whenever it is necessary.

1. Describe and derive an expression for the marginal cost (MC) curve.

2. Describe and estimate the incremental costs of the extra 200 pairs per week (from 1,000 pairs to 1,200 pairs of shoes).

3. What are the profit-maximizing price and output levels for Paradise Shoes? Describe and calculate the profit-maximizing price and output.

4. Discuss whether or not Paradise Shoes should expand its output further beyond 1,200 pairs per week. State all assumptions and qualifications that underlie your recommendation.

#### Percentage markups on cost

What percentage markups on selling price are equivalent to the following percentage markups on cost: 33 1/3, 20, 40, and 50? Discuss importance.

#### How the price of a set of clubs affects the demand for clubs

A golf club manufacturer is trying to determine how the price of a set of clubs affects the demand for clubs. The file P10_50.xlsx contains the price of a set of clubs and t

#### Calculate the total current market values of nongoma

Determine Nongoma Ltds after-tax weighted average cost of capital, based on the current market values of its sources of capital and Calculate the total current market values

#### Create a payment plan

The CFO of your company has asked you to provide recommendation concerning which payment plan to accept. What is your recommendation? Assume your weighted-average cost of ca

#### Calculate the break-even dollar sale volume for each project

Assuming that three units of product A are sold for every four units of product B, calculate the dollar sales volume necessary to break-even.    As part of its cost accounti

#### Computer controlled manufacturing systems

As companies move to computer controlled manufacturing systems, what happens to the mix of product costs (direct material, direct labor, and manufacturing overhead)?

#### Majority of lobbying efforts center around fiscal policy

Discuss opinions on lobbying regarding if it is useful and should continue as is, if it should continue but with constraints to limit how much is done, or it should be elimi

#### Estimate the variable cost per machine-hour

Estimate the variable cost per machine-hour and the fixed cost per month using the high-low method.(Round your "Variable cost" to 2 decimal places. Omit the "tiny_mce_marker