Why should the manager accept the order

Assignment Help Managerial Economics
Reference no: EM13241320

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?

Reference no: EM13241320

Questions Cloud

How would one determine which combination of variables : How would one determine which combination of variables is the best (with statistical significance)? If that's not possible, can we show that one combination is statistically significantly worse than the others? What method would be used?
Relationship exists between field size and number of seats : Before you run your scatter diagram answer the following: What do you think you will find? Bigger fields have more seats? Smaller fields have more seats? No relationship exists between field size and number of seats? A strong relationship exists betw..
Find the difference ma - mb in the masses of these planets : The mass of a robot is 5220 kg. This robot weighs 2650 N more on planet A than it does on planet B. Both planets have the same radius of 2.26 × 107 m
The company will be using samples of 100 bags : A company is filling bags of rock salt to a level of 50 pounds. It believes that all bags are filled correctly, but would like to use a hypothesis test with an alpha of 0.05 to check this belief.
Why should the manager accept the order : 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
Compute the molarity of a solution by diluting : calculate the molarity of a solution prepared by diluting 1.20 x 10^2 ml of 2.725 solution to 125.0 ml
Find the probability that they have a mean pregnancy between : The lengths of pregnancies are normally distributed with a mean of 264 days and a standard deviation of 25 days. If 100 women are randomly selected, find the probability that they have a mean pregnancy between 264 days and 266 days.
Find the magnitude of net force acting on the soccer ball : At an instant when a soccer ball is in contact with the foot of the player kicking it, the horizontal or x component of the ball's acceleration is 940 m/s2 What is the magnitude of the net force acting on the soccer ball at this instant
By how much may the deposit expand the total money supply : If Martha finds $10,000 under her mattress and deposits it in a demand deposit, by how much may the deposit expand the total money supply Assume that the legal reserve requirement (required reserves ratio) is 20%.

Reviews

Write a Review

Managerial Economics Questions & Answers

  Linear programming problem

Linear programming is a mathematical technique used to determine the optimal solutions to certain specific problems.

  Demand, supply and the market equilibrium

The article study for the demand, supply and the market equilibrium has been discussed. The article that has been review was published on August 2012.

  Supply and demand in professional sports

Draw the individual cost curves on one graph: marginal cost, average total cost, average ?xed cost, and average variable cost. Place costs ($) on the y-axis and quantity (Q) on the x-axis.

  Explain whether the firm will make economic profit

Explain whether the firm will make economic profit, In the short run and In the long run.

  Determine the official measure of the deficit

Determine the official measure of the deficit

  Coordination of the activities of a business

The organization and coordination of the activities of a business in order to achieve defined objectives.

  What is the profit maximizing number of gizmo widgets

What is the profit maximizing number of Gizmo Widgets that should be introduced? Be sure to account for the fact that Gizmo Widgets displace other kinds of widgets. Again, be sure you provide a brief explanation of your approach/reasoning.

  Determine autocorrelation function of a rectangular pulse

Prepare the sketch the Fourier transform of a rectangular pulse of amplitude 10 V and width 0.1 second that is centered on the zero time axis. Determine the autocorrelation function of a rectangular pulse.

  Managerial economics assignment

Carry out an analysis from the standpoint of both EMV and expected utility to establish Jeremiah’s best course of action, including a consideration of his bidding strategy with regard to the auction.

  Prepare a marginal cost analysed income statement for 2014

Prepare a Marginal Cost Analysed Income Statement for 2014 from the above data to identify total and individual medical procedure contributions and profits.

  Prepare a marginal cost analysed income statement for 2014

Prepare a Marginal Cost Analysed Income Statement for 2014 from the above data to identify total and individual medical procedure contributions and profits.

  Solve managerial economics questions

MGMT 3306: Solve the assignment problems, 1. Please answer the assignment questions in this docx file and save once you’re satisfied. Assignment 3covers the lectures slides for Week 6.

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