Answer:
Higher inflation expectations increase the nominal interest rate demanded by investors
Explanation:
In the case when the rate of interest measures when everything remains the same so if there is high inflation so it would be expected that it also rise the nominal rate of interest that demanded by investors as the inflation would be the value that ascend over a time frame
Hence, the same is to be considered
Therefore the first option is correct
Certain workers are assigned the task of unpacking production materials received from suppliers. These workers place the material in a storage area pending subsequent use in the production process. The labor cost of such workers is normally classified as: Direct materials. Indirect labor. Direct labor. Indirect materials.
Answer:
Indirect labor
Explanation:
The indirect labor is the labor that supports the process of the production but it is directly not inlvolved in the conversion of products i.e. from raw material to the finished goods
So as per the given situation some particular workers assigned the unpacking the production material task that collected from suppliers so this represent the indirect labor
hence, the same is to be considered
The regular selling price for the product is $80. The annual quantity of units produced and sold is 40,000 units (the costs above relate to the 40,000 units production level). The company has excess capacity and regular sales will not be affected by this special order. There was no beginning inventory. What would be the effect on operating income of accepting a special order for 1,000 units at a sale price of $40 per product
Answer:
The correct option is d. Increase by $19,500.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
Pluto Incorporated provided the following information regarding its single product:
Direct materials used = $240,000
Direct labor incurred = $420,000
Variable manufacturing overhead = $160,000
Fixed manufacturing overhead = $100,000
Variable selling and administrative expenses = $60,000
Fixed selling and administrative expenses = $20,000
The regular selling price for the product is $80. The annual quantity of units produced and sold is 40,000 units (the costs above relate to the 40,000 units production level). The company has excess capacity and regular sales will not be affected by this special order. There was no beginning inventory.
What would be the effect on operating income of accepting a special order for 1,000 units at a sale price of $40 per product? Note: The special order units would not require any variable selling and administrative expenses.
a. Decrease by $19,500
b. Decrease by $18,000
c. Increase by $18,000
d. Increase by $19,500
The explanation of the answer is now provided as follows:
We first calculate the expected total relevant cost of the special order as follows:
Direct materials cost per unit = Direct materials used / Annual units = $240,000 / 40,000 = $6.00
Direct labor cost per unit = Direct labor incurred / Annual units = $420,000 / 40,000 = $10.50
Variable manufacturing overhead per unit = Variable manufacturing overhead / Annual units = $160,000 / 40,000 = $4.00
Expected special order total relevant cost = (Direct materials cost per unit + Direct labor cost per unit + Variable manufacturing overhead per unit) * Special order units = ($6.00 + $10.50 + $4.00) * 1,000 = $20.50 * 1,000 = $20,500
Expected revenue from the special order = Special order units * Special order selling price per unit = 1,000 * $40 = $40,000
Expected profit from the special order = Expected revenue from the special order - Expected special order total relevant cost = $40,000 - $20,500 = $19,500
Since the expected profit from the special order is $19,500, it therefore implies that accepting it would increase operating income by $19,500.
Therefore, the correct option is d. Increase by $19,500.
Classical economists stress the importance of aggregate ________ and generally believe that the economy ________ to reach full-employment equilibrium on its own.
Answer: a. Supply
b. Adjust back
Explanation:
Classical economics explains the importance off aggregate supply, and the ability of an economy to adjust back to achieve it full employment equilibrium without help or assistance but by itself.
By attaining equilibrium it means that Owing to the fair operation of opposing forces, a state of rest or equilibrium. Equal balance of any forces, or factors.
The Internet has lowered the entry barriers for smaller firms that wish to diversify into international markets. Why is this so
Answer:
Explanation:
The internet has provided these smaller firms with a wide range of tools that allows for this to be possible at almost no cost. Such tools include communication, information, partners, etc. The internet allows smaller firms that do not possess much capital to quickly find international clients, communicate with them, and even close deals with them all through the internet. They can also find logistics partners that will facilitate these international transactions even more. All of this was impossible for a small firm to accomplish before the internet.
LBM, Inc. issues 25,000 shares of common stock for $20 per share. The stock has a par value of $1 per share. By what amount would LBM credit capital in excess of par? Group of answer choices $500,000 $475,000 $25,000
Answer:
$475,000
Explanation:
Calculation for By what amount would LBM credit capital in excess of par
Dr Cash $500,000
(25,000 shares*$20 per share)
Cr Common Stock $25,000
(25,000 shares*$1 per share)
Cr Capital in excess of par $475,000
($500,000-$25,000)
Therefore based on the above Journal entry and calculation the amount that LBM would credit as capital in excess of par will be $475,000 ($500,000-$25,000).
Approximately what percentage of U.S. jobs are retail jobs,as of 2019?
Answer:
around 5 percent are retail jobs
Approximately 20-25% percent of U.S. jobs are retail jobs, as of 2019. Customer service abilities are a requirement for almost all retail positions so that you can help consumers with purchases and enquiries about products while remaining courteous, upbeat, patient, and professional.
What are retail jobs?Selling goods to consumers is the primary responsibility of a retail position. There are many various types of shops, offices, and businesses where one can get retail work.
Opportunities in retail can include positions such as retail sales associate in a small neighborhood store, department sales manager in a name-brand retailer, and inventory specialist in an office. Careers in retail are a great method to progress in the position and make important decisions regarding the products and sales of the company.
Therefore, we can conclude that 20-25% are retail jobs in US as of 2019.
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Because Mr. Reuben is concerned about employee turnover, including a ______ plan that includes years of service would serve as an incentive for employees to remain with the organization.
Answer:
Pension benefit plan
Explanation:
A pension benefit plan is one where an employee promises to make a lump payment or a series of payments to an employee on retirement.
There is a guaranteed payment for the employee upon retirement.
It includes employee's pay, years of employment, and age at point of retirement.
As the pension benefit plan takes into consideration the number of years served by the employee it will be a perfect fit for Mr. Reuben's staff.
g purchased a 25% stake in for $486,000 on Jan 2, 2021. On Jan 1, 2021, Satisfactory had a book value of equity on its balance sheet of $1,944,000. What is the value that Perfection records in it's books on Jan 2, 2021 related to its investment in
Answer:
Perfection records in it's books an Investment in Associate of $486,000
Explanation:
Hi, your question has missing information, i tried to look for the full question online but I could not find it.
However, I have prepared below explanation to the problem.
When a firm has investments into another firm of less than 50% voting rights in stake but greater than 20% we say that firm has significant influent in the investee. The firm is said to have an Investment in an Associate.
Investments in Associates are always recorded using the Equity Method of Accounting.
Entries for Investment in Associate are :
Debit :Investment in Associate ($1,944,000 × 25%) $486,000
Credit : Share of profits of associate $486,000
Conclusion :
Perfection records in it's books an Investment in Associate of $486,000
If the opportunity cost of capital is 11%, and you have unlimited access to the capital, which one(s) would you accept
Answer:
Only Projects B and C would be accepted.
Explanation:
Note: This question is not complete. See the attached pdf file for the complete question.
The explanation of the answer is now given as below.
Since there is an unlimited access to the capital, tTo decide which project to accept, we first calculate the net present values (NPVs) of Projects A, B and C to see which one have positive NPV.
Note: See the attached excel file for the calculation of the net present values (NPVs) of Projects A, B and C.
In the attached excel, the following formula is used:
Discounting Factor = 1/(1 + r)^n
Where;
r = Opportunity cost of capital or interest rate = 11%, or 0.11
n = the year under consideration
From the attached excel file, we have:
NPV of Project A = ($1,094) = -$1,094
NPV of Project B = $3,250
NPV of Project C = $2,200
Decision criterion: Accept projects with positive NPV and reject projects with negative NPV.
Conclusion:
Based on the, only projects B and C which have positive NPV of $3,250 and $2,200 respectively would be accepted, while project A with a negative NPV of -$1,094 would be rejected.
Suppose that you are a U.S. producer of a commodity good competing with foreign producers. Your inputs of production are priced in dollars and you sell your output in dollars. If the U.S. currency depreciates against the currencies of our trading partners:
a. Your competitive position is likely worsened
b. Your competitive position is likely improved
c. Your competitive position is unchanged
Answer:
B)your competitive position is likely to improve.
Explanation:
From the question we are informed about an instance, whereby I'm a U.S. producer of a commodity good competing with foreign producers. My inputs of production are priced in dollars and you sell your output in dollars. In this case, If the U.S. currency depreciates against the currencies of our trading partners then my competitive position is likely improved. Competitive position can be regarded as value that is been offered by a product/service or it's band in regards to some offerings in a market. To model this, a simple graph is used which called "competitive position map" where one's offerings is plotted against the competition parameters.
Assuming the Fashion line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the Fashion line is used to increase the production of Hiking boots by 250%, how will operating income be affected
Answer:
A) Increase $137,500
Explanation:
Calculation for how will operating income be affected
CHANGE IN OPERATING INCOME
Sales Revenue (Additional) $850,000
(250 %* 340,000)
Less Variable expenses (Additional) ($587,500)
(250 % *$ 235,000)
Contribution Margin $ 262,500
($850,000-$587,500)
Less Fixed Expenses ($76,000)
($262,500-$76,000)
Operating Income $ 186,500
( $ 262,500-$76,000)
Less Previous Operating Income ($49,000)
Operating Income $137,500 Increase
($ 186,500-$49,000)
Therefore the operating income will increase by $137,500
Ping-Aye Tropical Fruits Company must choose between two transportation options: a contractual arrangement with a local carrier that costs $4,500 upfront plus $250 for each shipment, or leasing its own refrigerated trucks which will cost $20,000 plus $45 for each shipment. What is the indifference point
Answer:
The indifference point is 68 shipments.
Explanation:
First, we need to establish the total cost formula:
Local carrier:
Total cost= 4,500 + 250*x
Leasing:
Total cost= 20,000 + 20*x
x= number of shipments
Now, we equal both formulas and isolate x:
4,500 + 250x = 20,000 + 20x
230x = 15,500
x= 67.39 = 68
The indifference point is 68 shipments.
Discuss the unique marketing characteristics a product or service required based on the specific phase of the product life cycle
Answer: The product life cycle of a unique marketing can be characterized by introduction, growth, maturity and decline.
Explanation:
The product life cycle of a unique marketing can be characterized by introduction, growth, maturity and decline.
Introduction; This is viewed as an entry level into the market. Where the goods begin to gain a little recognition
Growth; this is described as a movement from introduction to a fast or slow consistent rapid growth of the product in the market.
Maturity; is described as the growth from the growth category, where the product gain some market stability and is now known by the public.
Decline; is the stage of slow and loss of recognition in the market space which could be caused by lack of creativity or consistency drop
While some products may stay in a prolonged maturity state, all products eventually phase out of the market due to several factors including saturation, increased competition, decreased demand and dropping sales
One project has three cash flows: att0, the initial investment cost is $150; att1, theproject pays $121; att2, the project needs an extra investment $242; att3, the projectpays $665.5. The project has a constant spot rate of return 10%. What is the presentvalue of the project
Answer:
$260
Explanation:
the cash flows associated to this project are:
year 0 = -$150
year 1 = $121
year 2 = -$242
year 3 = $665.50
the discount rate is 10%
using a financial calculator, the project's net present value (NPV) = $260
since the NPV is positive, then this project should be carried out
Transactions On September 1 of the current year, Joy Tucker established a business to manage rental property. She completed the following transactions during September: Opened a business bank account with a deposit of $36,000 in exchange for common stock. Purchased office supplies on account, $1,800. Received cash from fees earned for managing rental property, $6,750. Paid rent on office and equipment for the month, $5,000. Paid creditors on account, $1,375. Billed customers for fees earned for managing rental property, $9,500. Paid automobile expenses for month, $840, and miscellaneous expenses, $960. Paid office salaries, $3,600. Determined that the cost of supplies on hand was $350; therefore, the cost of supplies used was $1,450. Paid dividends, $3,000. Required: 1. Indicate the effect of each transaction and the balances after each transaction: For those boxes in which no entry is required, leave the box blank. For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300)
Answer:
Joy Tucker
Indication of the effect of each transaction and the balances after each transaction:
1. Opened a business bank account with a deposit of $36,000 in exchange for common stock.
Assets increased + $36,000 (Cash $36,000) = Liabilities + Equity increased + $36,000 (Common stock $36,000)
2. Purchased office supplies on account, $1,800.
Assets increased + $1,800 (Cash $36,000, Supplies $1,800) = Liabilities increased + $1,800 (Accounts payable $1,800) + Equity (Common stock $36,000)
3. Received cash from fees earned for managing rental property, $6,750.
Assets increased + $6,750 (Cash $42,750 , Supplies $1,800) = Liabilities increased (Accounts payable + $1,800) + Equity increased + $6,750 (Common stock + $36,000 + Retained Earnings $6,750)
4. Paid rent on office and equipment for the month, $5,000.
Assets decreased - $5,000 (Cash $37,750, Supplies $1,800) = Liabilities increased (Accounts payable + $1,800) + Equity decreased - $5,000 (Common stock + $36,000 + Retained Earnings $1,750)
5. Paid creditors on account, $1,375.
Assets decreased - $1,375 (Cash $36,375, Supplies $1,800) = Liabilities decreased - $1,375 (Accounts payable $425) + Equity (Common stock + $36,000 + Retained Earnings $1,750)
6. Billed customers for fees earned for managing rental property, $9,500.
Assets increased +$9,500 (Cash $36,375, Supplies $1,800, Accounts receivable $9,500) = Liabilities decreased (Accounts payable $425) + Equity increased +$9,500 (Common stock + $36,000 + Retained Earnings $11,250)
7. Paid automobile expenses for month, $840, and miscellaneous expenses, $960.
Assets decreased -$1,800 (Cash $34,575, Supplies $1,800, Accounts receivable $9,500) = Liabilities decreased (Accounts payable $425) + Equity decreased -$1,800 (Common stock + $36,000 + Retained Earnings $9,450)
8. Paid office salaries, $3,600.
Assets decreased -$3,600 (Cash $30,975, Supplies $1,800, Accounts receivable $9,500) = Liabilities decreased (Accounts payable $425) + Equity decreased -$3,600 (Common stock + $36,000 + Retained Earnings $5,850)
9. Determined that the cost of supplies on hand was $350; therefore, the cost of supplies used was $1,450.
Assets decreased -$1,450 (Cash $30,975, Supplies $350, Accounts receivable $9,500) = Liabilities decreased (Accounts payable $425) + Equity decreased -$1,450 (Common stock + $36,000 + Retained Earnings $4,400)
10. Paid dividends, $3,000.
Assets decreased -$3,000 (Cash $27,975, Supplies $350, Accounts receivable $9,500) = Liabilities decreased (Accounts payable $425) + Equity decreased -$3,000 (Common stock + $36,000 + Retained Earnings $1,400)
Explanation:
The above transactions show their effects on the accounting equation, which states that assets = liabilities + equity. Each transaction has some effects on the assets with equal effects on either the liabilities or equity. This implies that the equation is always in balance. It is the basis of the double-entry system of accounting.
1. What is the incremental manufacturing cost incurred if the company increases production from 29,750 to 29,751 units
Answer:
$17.90
Explanation:
The below is missing from the question:
Kubin Company’s relevant range of production is 28,000 to 31,500 units. When it produces and sells 29,750 units, its average costs per unit are as follows:
Amount per Unit
Direct materials $8.80
Direct labor $5.80
Variable manufacturing overhead $3.30
Fixed manufacturing overhead $ 6.80
Fixed selling expense $ 5.30
Fixed administrative expense $ 4.30
Sales commissions $ 2.80
Variable administrative expense $ 2.30
In order to determine the incremental manufacturing cost by increasing the volume of production from 29,750 to 29,751 units, we simply compute the extra variable cost of producing one extra unit since 29,751 units are still within the relevant range of output, no extra fixed costs would be incurred.
extra cost per unit=direct materials+direct labor+Variable manufacturing overhead
Sales commissions and Variable administrative expense are not included because they are not manufacturing costs
extra cost per unit= $8.80 +$5.80 +$3.30 =$17.90
On June 30, Lord Baltimore, Inc. paid Denver Insurance Company $40,000 for one year’s worth of insurance. What is the adjusting entry that should be recorded by Denver Insurance Company on December 31, after 6 of 12 months of insurance had expired? Group of answer choices
Answer:
Dr Unearned revenue, $20,000
Cr Revenue, $20,000
Explanation:
Based On the information given if on June 30, the company paid Denver Insurance Company the amount of $40,000 for one year’s worth of insurance. Which means that adjusting entry that should be recorded by Denver Insurance Company on December 31 will be
Dr Unearned revenue, $20,000
Cr Revenue, $20,000
($40,000*6/12)
The following information is available for the Noir Detective Agency. After closing entries are posted, what will be the balance in the Retained earnings account
Answer: $230,400
Explanation:
The Retained earnings account is mainly used to record how much the company retains from its past and present net incomes after paying out dividends to shareholders.
Ending Balance = Beginning balance + Net income - dividends
= 294,000 + (-27,600) - 36,000
= $230,400
A disadvantage of franchising to the franchisee is: Group of answer choices national name recognition ongoing management training program standardized operating procedures restricted operating freedom assistance in site location
Answer:
restricted operating freedom
Explanation:
Franchise is a license consisting of a contractual arrangement between a parent company and another, that allows individuals or an organization access to its knowledge, processes, trademarks in order to provide a service.
One of the main advantages of a franchise is that, franchisers such as McDonald do not require additional capital and development expenses to have their businesses being situated in a foreign market or country, as they only required to issue licenses to franchisors who are interested in being part of their business by paying a fee.
Hence, a disadvantage of franchising to the franchisee is restricted operating freedom.
Additionally, a product distribution franchise can be defined as a supplier-dealer business relationship in which a dealer (franchisee) is granted a license by the manufacturer (franchisor) to sell and distribute their products.
In this type of franchise, the dealer (franchisee) is only granted the license to use just the logos and trademarks of the manufacturer (franchisor) but not the framework (system) for the establishment and operations of the business.
Some examples of a product distribution franchise is Fords motors, Coca-Cola, mobile homes, Guiness etc.
The GDP price index is multiple choice 3 computed for each industry sector. a measure of the price of a specified collection of goods and services compared to the price of a highly similar collection of goods and services in a reference year. a measure of the price of a specified collection of goods and services compared to the average of the prices of a highly similar collection of goods and services for the last 10 years. a measure of nominal GDP adjusted for inflation. d. Which of the following statements is true
Answer:
a measure of the price of a specified collection of goods and services compared to the price of a highly similar collection of goods and services in a reference year.
Explanation:
The changes should be measured that made in the goods and services involved in GDP. The GDP price index would be treated as an indicator for inflation that has been determined by comparing the current GDP to the GDP made in the reference year
So it would be measured the particular collection of the goods & services that should be compared with that of the reference year
hence, first option is correct
Formal declaration by the chairperson that the meeting has begun is called
Answer: call to order
Explanation:
The formal declaration by the chairperson that the meeting has begun is referred to as the call to order.
The call to order is used to begin a meeting formally, keep everyone quiet and make sure that the rules are rules by the people in the meeting.
Well-functioning markets allow: a. mutually beneficial trades to take place. b. property rights to be unnecessary components of effective distribution. c. producers to gain at the expense of consumers. d. consumers to gain at the expense of producers. e. producers to reap greater benefits since they have greater power in the market
Answer:
a. mutually beneficial trades to take place.
Explanation:
Well-functioning markets allow mutually beneficial trades to take place.
This simply means that, in a perfectly competitive market, there are many buyers and sellers (price takers) of homogeneous products (standardized products with substitute) and the market is free (practically open) to all individuals or business entities that are willing to trade all their goods and services.
Hence, a well-functioning market such as a perfectly competitive market is characterized by the following features;
1. Perfect information.
2. No barriers, it is typically free.
3. Equilibrium price and quantity.
4. Many buyers and sellers.
5. Homogeneous products.
Examples of a perfectly competitive market are the Agricultural sector, e-commerce and the foreign exchange market.
Ethan is a young salesperson who is tasked with establishing and maintaining good relationships with his customers. Whenever he approaches a customer to sell his product, he begins a series of conversations with the customer to determine his or her needs, communicates how the product can create value for the customer, and negotiates a business deal with the customer and earns his or her commitment. In this scenario, Ethan most likely engages in
Answer: Sales dialogue
Explanation:
From the information given in the question, we can see that Ethan is engaging in sales dialogue.
A sales dialogue is a form of communication whereby the seller of a product talks with the customers so that the seller can understand what the buyer wants and the seller finds a way to solve that and meet the needs of the buter.
A demand curve reflects each of the following except the:________
a. highest price buyers are willing to pay for each quantity.
b. willingness to pay of all buyers in the market.
c. value each buyer in the market places on the good.
d. quantity that each buyer will ultimately purchase .
Answer:
ability of buyers to obtain the quantity they desire.
Explanation:
The demand curve shows the relation between the price and the quantity demanded of the product. It represent the high price that buyer is willing to pay for each and every quantity, their willingness, valued each buyer and but it does not represent the buyer ability for gaining the quantity as they want
Therefore the same is to be chosen
A demand curve does not reflect: d. quantity that each buyer will ultimately purchase.
What does the Demand Curve reflect?The demand curve represents the relationship between price and quantity demanded in a market. It reflects the highest price buyers are willing to pay for each quantity (a), the willingness to pay of all buyers in the market (b), and the value each buyer places on the good (c).
However, the demand curve does not indicate the specific quantity that each individual buyer will ultimately purchase (d). It provides an aggregate view of the market's demand and does not provide information about the behavior of each individual buyer.
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In what situations is top-down planning likely to be superior to bottom-up emergent strategy development
Answer is given below :
Explanation:
Both strategies aim to convey and process knowledge between and within the organization. The top-down approach for sub-categories to gain insights at the senior management level breaks down a system. This is a great tool to help managers identify areas of improvement using quota and monthly matrix goals. There are flaws in this strategy, employees are not involved in the process and managers do not understand the full impact of the changes made. Morality can be affected because this strategy is motivated by fear and encouragement. The bottom line is that in some cases it is more complex, although employees feel motivated to provide more authority and quality work. The information is processed to a minimum and communicated to management. This may help in some areas because administrators may not fully understand the process. I should use the military as an example for a top down strategy. It works on the battlefield when there is no time to discuss or motivate employees. Top down is used when there is a slight change in environmental factors.Suppose that you are on a desert island and possess exactly 20 coconuts. Your neighbor, Friday, is a fisherman, and he is willing to trade 2 fish for every 1 coconut that you are willing to give him. Another neighbor, Kwame, is also a fisherman, and he is willing to trade 3 fish for every 1 coconut.
a. On a single figure, draw budget lines for trading with Friday and for trading with Kwame. (Put coconuts on the vertical axis.)
b. What is the slope of the budget line from trading with Friday?
c. What is the slope of the budget line from trading with Kwame?
d. Which budget line features a larger set of attainable combinations of coconuts and fish?
e. If you are going to trade coconuts for fish, would you rather trade with Friday or Kwame?
Answer:
a) see attached image
b) Friday's slope = 1/2
c) Kwame's slope = 1/3
d) Kwame's budget line since it includes 60 fish on one side and 20 coconuts on the other.
e) Kwame is willing to pay more fish per coconut
During the first half of 2X13, the French corporate tax rate was 26%. At the end of 2013, the French Parliament announced a changed in the corporate tax rate from 25% (July 2X13 onward) to an expected 20%. The earnings before taxes (EBT) for Kansas Ltd (Fr) are 80 million Euros first half; 90 million Euros second half of 2X13. The CFO decides to use the 20% tax rate in 2X13, prior to the passing of legislation. He is:
Answer:
d. Manipulating data
Explanation:
In the given case since it is mentioned that in the first half of the year 2013 there is a corporate tax of 26% now at the end of the year 2013 there is a change in the corporate tax i.e. 20%
Also the earning before tax would be 80 million in the first half and in the second half it would be 90 million
So this represent the data is manipulated as it would be considered the same for the whole year i.e. for 2013 but it keeps changing
Therefore the last option is correct
starbucks repurchased over 1.4 billion of its common stock in 2015. did this repurchase increase or decrease roe
A time ticket: Shows the time an employee worked on each job only. Shows the time an employee worked on each job and the total cost chargeable to each job only.
Answer: a. the time that a department's employees worked on all jobs, the pay rate of each employee, and the total cost chargeable to each job.
Explanation:
Time tickets help record the number of hours an employee worked. It is therefore very useful in calculating the wages due to a worker as that is based on the number of hours worked.
The time ticket will include the time that the employee worked on all jobs, the pay rate for the employee for those jobs and the total cost to the company for each job the the employee performed.
The company can manufacture two food processors per machine hour and three espresso machines per machine hour. The company's production capacity is 1,200 machine hours per month.To maximize profits, what product and how many units should the company produce in a month
Answer:
3,600 Espresso Machines and 0 Food Processors
Explanation:
The computation is shown below:
Particulars Food processers Espresso machines
Sales $125 $225
Less: Variable cost -$50 $150
Contribution margin $75 $75
Units per machine hour 2 3
CM per machine hour $50 $225
rank 2 1
Here the expresso machines should be chosen
Also the number of units would be
= 1,200 × 3
= 3,600
Hence, 3,600 Espresso Machines and 0 Food Processors