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PowerDrive, Inc. produces a hard disk drive that sells for $175 per unit. The cost of producing 25,000 drives in the prior year was: Direct material$625,000Direct labor 375,000 Variable overhead 125,000 Fixed overhead 1,500,000 Total cost$ 2,625,000 At the start of the current year, the company received an order for 4,000 drives from a computer company in China. Management of PowerDrive has mixed feelings about the order. On the one hand they welcome the order because they currently have excess capacity. Also, this is the company's first international order. On the other hand, the company in China is willing to pay only $135 per unit. What will be the effect on profit of accepting the order?
Consider the following demand and supply equations for cell-phones in the domestic country: Supply: Qs = − 60 2 + 3 2 P Demand: Qd = 300 2 − 3 2 P where the price is measure in $/cell-phone and the quantity is measure in thousands of cell-phones. 1. ..
When real estate agents sell their own, rather than clients’, houses, they leave the houses on the market for a longer time (10 days longer on average) and wind up with better prices (2% higher on average). Why?
Analyze the government’s role in the protection of the environment. Be sure that your analysis includes a look at one of the following: conservation, environmentalism, protection, global warming, and energy concerns.
A manufacturer of an inspecting and profiling web controller has a capital investment of $200000, a fixed cost of $83000 per year and variable costs of $60 per unit produced. If the product is sold at $90 per unit, determine the breakeven quantity pe..
What is the difference between quality control and quality assurance?
Suppose you are the manager of a California winery. How would you expect the following events to affect the price you receive for a bottle of wine? Explain your answers The price of comparable French wine decreases. The unemployment rate in the Unite..
The Investment demand curve is a useful tool to summarize an important and complex relationship in the economy.
One of the major reasons that foreign expatriates have difficulty doing business in the United States is that they do not understand American slang. For U.S. companies going abored for the first time, which forms of nonverbal communication barrier, w..
Graph the following: Demand Curve Marginal Revenue Curve Marginal Cost Curve Average Total Cost Curve B) Identify the profit maximization point for the monopolist. What are the price and quantities that will maximize profit? What is the total profit ..
On her 25th birthday a young female engineer decides to start saving toward building up a retirement fund that pays 6% annual interest, compounded monthly (market interest rate). If she plans to save by making 480 equal quarterly deposits, what shoul..
1. Markets tend toward equilibrium and, as a result, will tend to eliminate shortages and surpluses. Why?
Would you expect two farms of widely different size to have the same fixed costs on their enterprise budgets for the same enterprise? Might economies or diseconomies of size explain any differences?
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