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An executive from a large merchandising firm has called your vice president for production to get a price quote for an additional 100 units of a given product. The vice president has asked you to prepare a cost estimate. The number of hours required to produce a unit is 5. The average labor rate is $12 per hour. The materials cost $14 per unit. Overhead for additional 100 units is estimated at 50% of the direct labor cost. If the company wants to have 30% profit margin, what should be the unit price to quote?
Equilibrium quantity must increase when demand
The management of Madeira Manufacturing Company is considering the introduction of a new product. The fixed cost to begin the production of the product is $33,000. The variable cost for the product is uniformly distributed between $20 and $27 per uni..
What do you think based on your current knowledge. Then look up some facts and answer them again. Is inflation: High, Moderate, or Low? Is unemployment: High, Moderate or Low; what is the unemployment rate? Are interest rates: High, Moderate, or Low?..
With respect to factors of production, which of the following statements is not true?
What has caused most of the deficit pre-WWII? Since WWII? Since the 1980s? What is crowding out? Crowding in? Why do we have a twin deficits problem? How did the US run a budget surplus in the 1990s? What changed in the 2000s causing permanent defici..
q.a mechanical engineer who recently graduated with a masters degree is contemplating starting his own commercial
Suppose you were manager of restaurant and you were told honestly that a couple eating dinner has just seen a mouse, what would you say to them, how would you recover from this service crisis.
Fred’s Hardware and Hobby House expects its sales to increase at a constant rate of 8 percent per year over the next three years. Current sales are $100,000. Forecast sales for each of the next three years. What are some of the hazards of employing a..
Suppose that there are 150 houses in the community with 2,000 square feet (providing services that rent for $10,000 per year). The interest rate is 4% and with proper maintenance all of the houses will last forever. In an election the population deci..
Betty can make either “12 bottles of wine and 0 boxes of chocolates” or “0 bottles of wine and 96 boxes of chocolates” or a combination of wine and chocolates. Find the equilibrium price (P), quantity (Q), and revenue in a market characterized by the..
A famous American has been visiting the same tropical island for 15 years for vacations. When she goes she pays for everything by writing checks drawn on her U.S. bank. The currencies the natives use are not U.S. dollars; they use a currency called a..
Absolute advantage is determined by (a) actual differences in labor productivity between countries (b) relative differences in labor productivity between countries (c) Both A and B. (d) Neither A or B
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