Determine which product mix should be pushed

Assignment Help Econometrics
Reference no: EM13189685

Product A:
Selling Price $10
Variable Costs $5
Fixed Costs $2000

Product B:
Selling Price $12
Variable Costs $10.00
Fixed Costs $600

[a] If these products are sold in the ratio of 4a to 3b, what is break even point? what about 5a to 5b? In order to maximize profit, which product mix should be pushed?

[b] Assume that product A requireds .5 hour per unit and B requires .25 hour per unit. If both products must go through the same manufacturing machine and there are only 30000 machine hours available per period, which product should be pushed?

Reference no: EM13189685

Questions Cloud

Adjust ni as required to obtain pi : To the right is a list of domestic output and national income figures for a certain year. All figures are in billions. The questions that follow ask you to determine the major national income measures by both the expenditures and the income approa..
Find which vehicle is economically preferred : For simplicity, assume MSRP is the cash purchase price. The vehicle will be driven 1,000 miles per month and you hope to can sell either vehicle after 36 months for 70% of the purchase price (use the MSRP). Sales tax of 8.4% is paid at time zero a..
How to verify ror findings with npv and pvr analyses : Use ROR analysis to determine whether it is better to sell the rights to the property today (time zero), or begin development using either the "A" or "B" scenarios. Assume the investor is seeking a nominal before-tax minimum ROR of 10%. Verify you..
Determine how much money can be withdrawn every year : If an investor deposits $1000 now, $3000 three years from now, and $600 per year for 5 years starting 4 years from now, how much money can be withdrawn every year forever beginning 12 years from now, if the rate of return on the investment is 8%.
Determine which product mix should be pushed : Assume that product A requireds .5 hour per unit and B requires .25 hour per unit. If both products must go through the same manufacturing machine and there are only 30000 machine hours available per period, which product should be pushed
Estimate annual energy and maintenance cost : Two alternate schemes are proposed for heating this building. "Bottled gas" can be used for floor type furnaces, or electric radiant panels can be installed in the walls and ceiling. It is estimated that the building will be used for 5 years befor..
Why might higher require reserve ratio decrease bank profits : China's central bank will raise its reserve ration requirement by a percentage point to a record 17.5 percent by June 25, stepping up a battle to contain lending growth. The increase will freeze up about 422 billion yuan of funds, equivalent to 9..
Illustrate the effect of a fall in consumption expenditure : On Wednesday, the Commerce Department reported that the economy continued to stagnate during the first three months of the year, with a sharp pullback in consumer spending the primary factor at play.Americans cut back on a wide variety of discretio..
Does japan have an inflationary gap : In Japan, potential GDP is 600 trillion yen and the table shows the aggregate demand and short-run aggregate supply schedules. Real GDP Demanded Real GDP Supplied in the Short Run Price Level (trillions of 2000 yen) (trillions of 2000 yen)

Reviews

Write a Review

 

Econometrics Questions & Answers

  Measure the marginal utility per dollar

Let MUA = z = 10 ? x and MUB = z = 21 2y, where z is marginal utility per dollar measured in utils, x is the amount spent on product A, and y is the amount spent on product B. Assume that the consumer has $10 to spend on A and B-that is, x + y = 1..

  Find price per ride based on the price elasticity of demand

The total operating revenues of a public transportation authority are $100 million while its total operating costs are $120 million. The price of a ride is $1 and the price elasticity of demand for public transportation has been estimated to be -0..

  What should your pricing policy be to maximize profits

You are the manager of a pizza parlor that produces at a marginal cost of $6 per pizza. The parlor is a local monopoly near campus (there are no other restaurants or food stores within 50 miles). During the day, only students eat at your restauran..

  What is the expected return on the equity

Company A just paid a $3.00 dividend per share. The dividend is expected to grow at a 4% rate indefinitely. The beta of the stock of Company A is 1.5. The market risk premium is 8% and the risk-free rate is 3%. (a) What is the expected return on t..

  What restrictions must be placed on the parameters

Solve for the equilibrium values of Q and P (So find Q* and P*) as a function of a1, a2, b1, b2. And what restrictions must be placed on the parameters a1b2 and a2b1 so that the value of Q* above makes economic sense?

  Derive an equation for p0 as a function

A loan of P0 which accrues an interest i per period is to be paid of with a uniform gradient annuity with initial payment A and gradient G over n periods. Thus, the change in the amount of principal is governed by Pn =Pn-1(1+i)-A0 -(n-1) G (1)

  What is the size of the labor force

Assume the following data for a country: total population, 500; population under 16 years of age or institutionalized, 120; not in labor force, 150; unemployed, 23; part-time workers looking for full-time jobs, 10. What is the size of the labor fo..

  Determine the present value of the investment

A team of carrying materials costs $ 15,000 and is expected to save 3,000 in operating costs the first year. The increase in operating and maintenance costs will reduce the net savings $ 250 per year until the equipment is replaced at the end of y..

  Salary of manager in competing firms

You are attending the yearly shareholder's meeting of PIC firm. A fellow stockholder points out that manager of PIC received $100,000 last year, while the manager of a rival company, CUP Enterprises, earned only $50,000.

  Calculate cross price elasticity

The demand for Wanderlust Travel Services (X) is estimated to be Qx = 22,000 - 2.5Px + 4Py - 1M + 1.5Ax, where Ax represents the amount of advertising spent on X and the other variables have their usual interpretations. Suppose the price of good X..

  What compounded annual increase in the cost of first-class

In 1885, first class postage for a one-ounce letter cost $0.02. The same postage in 2011 costs $0.46. What compounded annual increase in the cost of first-class postage has been experienced over this period of time

  What will be the inflation rate is the velocity of money

Suppose Money Supply is growing at a rate of 7% per year and RGDP is growing at a rate of 3% per year. What is the inflation rate assuming the velocity of money is constant?What will be the inflation rate is the velocity of money is increasing 2% pe..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd