What the vertical intercept for the firm isocost line is

Assignment Help Managerial Accounting
Reference no: EM132967492

A firm currently employs 45 production workers and 6 supervisors. The marginal product of the last production worker employed is 50 units of output per hour and production workers are paid $10 per hour. The marginal product of the last supervisor employed is 150 units of output per hour and supervisors are paid $30 per hour. Every employee works 40 hours per week.

Problem 1:
What is the firm's total labor cost per week? ____

Problem 2:
Assume that hours of labor by supervisors (Ls) is plotted on the vertical axis and hours of labor by production workers (Lp) is plotted on the horizontal axis. The vertical intercept for the firm's isocost line is ____ and the horizontal intercept is ____.

Problem 3:
Assume that the firm's isoquants are smooth curves and that labor hours can be varied continuously. Is the firm producing the maximum level of output given its current level of cost?

Reference no: EM132967492

Questions Cloud

Prepare the manufacturing overhead budget : Prepare the manufacturing overhead budget or the direct materials budget. Cook Farm Supply Company manufactures and sells a pesticide called Snare.
Build productive relationships-maximise work outcomes : How do leaders inspire others to develop their own emotional intelligence (EI), build productive relationships and maximise work outcomes?
What is the us dollar cost to dow chemical of buying : Suppose Dow Chemical receives quotes of $0.009369 - $0.009371 for the yen and $0.03675 - $0.03676 for the Taiwan dollar (NT$).
Discuss the ten laws of effective communication : Q1.1 Briefly describe what six elements make up an organisation's strategic framework.
What the vertical intercept for the firm isocost line is : What vertical intercept for the firm isocost line is? A firm currently employs 45 production workers and 6 supervisors. The marginal product of last supervisor
Analyze advertising ethics : Are the advertisements harmful or beneficial to the consumers? Critically analyze advertising ethics, based on Galbraith's and Kaldor's perspective.
Service industries in monopolistic competitive markets : Name and DESCRIBE a method commonly used by service industries in monopolistic competitive markets to boost revenues.
What was bramble retained earnings balance at end of year : Company recorded revenues of $487000, expenses of $385000, and paid dividends of $38500. What was Bramble's retained earnings balance at the end of the year?
Purchase modular partitions for privacy : An employee's desk is situated in a high-trafficked area. Coworkers too often interrupt to visit or ask questions that are not the employee's responsibility to

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Determine the added desired ending finished good units

Lowell Company makes and sells artistic frames, Determine the Added Desired Ending Finished Good Units and Less Beginning Finished Good Units.

  How will the affect net income for tax purposes

Make a 2020 CPP contribution of $5,796 [(2)($2,898)]. How will this affect his 2020 Net Income For Tax Purposes and his 2020 Taxable Income?

  Find periodic fifo and periodic lifo cost of goods sold

Find periodic FIFO and periodic LIFO cost of goods sold and cost of ending inventory.Beginning Inventory: 2000 @ 26,March 7 Purchase: 1800 @ 29

  How many equivalent units with respect to conversion cost

Jim-N-John uses a weighted-average process costing system. How many equivalent units with respect to conversion costs did Jim-N-John complete during January?

  Determine what is the required rate of return on debt

Find What is the required rate of return on debt? The risk-free rate is 6 percent. The market risk premium is 5 percent. The stock's beta is 1.2.

  How return on assets is computed as

How Return on assets is computed as? Net income / Average stockholders' equity./ Net income / Average total assets. / Return on sales × Asset turnover

  Make the income statement for the month ended august

Prepare the Income Statement for the month ended 31 August 2020 using the absorption costing method. Information The financial manager of Seiko Manufacturers

  Prepare a variable costing income statement for basler

Prepare a variable costing income statement. During 2019, Basler Manufacturing produced 60,000 units and sold 55,000 for $10 per unit.

  Determine the amount of costs in the raw materials

Determine the amount of costs in the Raw Materials, Work in Process, and Finished Goods inventory accounts as at the date of the tornado.

  What is the net effect on Tran overall income

The remaining fixed costs can be eliminated if the product line is discontinued. What is the net effect on Tran overall income

  What order of allocation under step cost allocation method

What is the order of allocation under the step cost allocation method? Amber Company uses two producing departments (A and B)

  Determine the fixed overhead spending variance

Variable overhead efficiency variance: $18,000 F; Actual fixed overhead costs: $200,000; Determine the fixed overhead spending variance

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