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Easy-Barrows, Inc., produces wheelbarrows. Its costs have been analyzed as follows: VARIABLE COST Materials $30/unit Manufacturing labor 3 hours/unit (at $8/hour) Assembly labor 1 hour/unit (at $8/hour) Packing materials $3/unit Packing labor 20 minutes/unit (at $6/hour) Shipping cost $10/unit FIXED COSTS Overhead labor $50,000/year Utilities $5,000/year Plant operation $65,000/year SELLING PRICE $100/unit
a. Calculate the break-even quantity.
b. Calculate the break-even revenue.
c. Develop a chart to show profits at quantities of 2000, 4000, 6000, 8000, and 10000.
Explain why quality became the most important issue facing American business in the 1980s. In addition to economic competition from Japan, what other factors may have contributed to the importance that quality has assumed?
Are legalized forms of gambling, such as state-operated lotteries, consistent with a continuing public policy against the enforcement of gambling contracts? Why or why not? Please discuss and support your comments using legal reasoning and terminolog..
The free-rider concept occurs when a person enjoys the benefits of a good or service without paying for it. Music files are nonrival and effectively nonexcludable, thus creating a free-rider problem. Do you concur that the best solution is for the co..
When sellers have more information about hidden characteristics of a good than buyers have, more low-quality units are likely to be sold than high-quality units.
The cost of a 110hp generator today is $155,000. The cost of a 65hp generator 6 years ago was $56,000. The generator equipment index today is 193 and 6 years ago it was 143. Calculate the power sizing exponent for this equipment.
Suppose the MWTP in periods 1 (now) and 2 (one year from now) is given by P = 8-0.4q. Marginal extraction cost = $2. r = 10%. The available supply is 20 units. Suppose 13 units are consumed in period 1 and 7 units in period 2. Calculate the present v..
Converse the latest equilibrium price also quantity to result from these changes.
Consider that you just got your dream job as a marketing research manager of a small company. Your first duty is to create and administer a survey of potential customers. Your new company wants the survey done as soon as possible. About 75% of the wa..
q.following investments strategies you are choosingi. invests 200 in stock a. stock a costs 20 share. predictable
Ted is renting a house, and it does not have a refrigerator. A refrigerator is worth $2.75 every day because Ted will eat out less. Ted has a discount rate of 17%. Refrigerators usually last 6 years. Ted buys a $2500 refrigerator on the finance plan...
Hong Kong dollar, and the one-year forward exchange rate is 9 yen per dollar. Determine whether or not there is an arbitrage opportunity and, if possible.
According to Keynes, why might deflation create problems for an economy?
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