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Two alternative designs are under consideration for a tapered fastening pin. The fastening pins are sold for $0.70 each. Either design will serve equally well and will involve the same material and manufacturing cost except for the lathe and drill operations. Design A will require 12 hours of lathe time and 5 hours of drill time per 1,000 units. Design B will require 7 hours of lathe time and 8 hours of drill time per 1,000 units. The variable operating cost of the lathe, including labor, is $18.60 per hour. The variable operating cost of the drill, including labor, is $16.90 per hour. Finally, there is a sunk cost of $5,000 for Design A and $9,000 for Design B due to obsolete tooling. (2.4) a. Which design should be adopted if 125,000 units are sold each year? -. What is the annual saving over the other design? Please need correct answers
Assume that you are going to start a small business of your own. Further, imagine that you are able to adequately differentiate your product, or service so that you can establish your business as a monopolistically competitive firm. Describe the busi..
When a company's depreciation is larger than its gross investment, net investment becomes negative and the firm's capital stock decreases.
Explain the impact of Wal-Mart's supply chain management on its total product, marginal product, and average product curves. What has been the effect on its retail prices?
Which of the following is not a characteristic of a monopolistically competitive market structure
the microeconomic paper tests your ability to apply economic principles to a business decision. select one situation
It seems that it will be the government shifts. The next government with the Social Democrats in the lead wants to operate expansive fiscal policy. A journalist asks to social demokreterna this: you were commissioned to analyze the situation and prov..
they pay 20 cents to the Lord High Mayor of Rabushka. What is the marginal tax rate in Rabushka for a worker whose income is $1 million?
should the fed be independent?1. nbspthe federal reserve system has a large measure of political independence. the
A certain engine lathe can be purchased for $270,000 and depreciated over three years to a zero salvage value with the SL method. This machine will produce metal parts that will generate revenues of $180,000 (time zero dollars) per year. Determine th..
A product has an arc elasticity of -0.8. at a price of $7.00, 1000 units are sold per period. In order to sell 1200 units, what will the new price be. Illustrate what is the revenue at the old price ($7.00)and the new price.
(a) Should the company make its own spare parts or buy them from an outside vendor (b) Should the company continue to service the equipment it sells or ask the customers to use independent repair companies (c) Should a company expand its business to ..
q1. two automatic systems for dispensing maps are being compared by the state highway department. the accompanying
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