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The California Instruments Corporation, a producer of electronic equipment, makes pocket calculators in a plant that is run autonomously.The California Instruments Corporation, a producer of electronic equipment, makes pocket calculators in a plant that is run autonomously. The plant has a capacity output of 200,000 calculators per year, and the plant's manager regards 75 percent of capacity as the normal or standard output. The projected total variable costs for the normal or standard level of output are $900,000, while the total overhead or fixed costs are estimated to be 120 percents of total variable costs. The plant manager wants to apply a 20 percent markup on cost.
If during the year the plant manager receives an order for an additional 20,000 of its calculators from a school system to be delivered in four months for the price of $10, should the manager accept the order?
A company under monopolistic competition faces the demand curve: P = 500 - 12.5Q. The company's marginal cost is MC = 200 + 5Q.
Suppose your employer sends you on a reconnaissance mission to Roswell, New Mexico. Your CEO wants to relocate company's customer service operation to Roswell,
Compute the required rate of return on a stock that has a beta of 2, if the risk-free rate is 4% and the market rate of return is 12 percent.
Discuss and explain two factors that would increase demand for labor. Suppose if the market price of the good or service that a firm produces increases, what happen to the demand of labor
Would the reward system vary among retailers, manufacturers, distributors, financial organizations? What other characteristics should good performance incentives have?
Suppose you are contemplating an investment project that has 2-phases. As currently planned, 1st phase of the project needs an investment of $100,000 today.
Following are the Production Function: Q = 72X + 15X2 - X3, where Q = Output and X = Input The Marginal Product and Average Product when X = 6 are;
The Zinger Corporation manufactures and sells a line of sewing machines. Demand per period (Q) for a particular model is given through the following relationship:
Suppose you have been appointed as Global Manager of a company that has 2-plants, one in the US and one in Mexico. Suppose, you cannot change the size of plants or amount of capital equipment.
Tropical Sweets is planning a project that will cost $70 million and will create expected cash flows of $30 a year for next 3-years. The cost of capital for this type of project is 10% and the risk-free rate is 6%.
The Taylor Mountain Uranium Corporation currently has yearly cash revenues of $1,200,000 and yearly cash expenses of $700,000.
The following is a hypothetical short run production function calculate the total output when two hours of labor are employed?
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