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Economics
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Apr 3, 2024
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(Round your responses to two decimal places in this question if needed) Joe Henry’s machine shop uses 2,500 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The following information is known about the brackets:
Annual demand 2,500
Holding cost per bracket per year $1.60
Order cost per order $20.00
Lead time 0 days
Working days per year 250
What is the EOQ?
-250.00
What is the average inventory if the EOQ is used?
-$125.00
What would be the annual inventory holding cost? $200.00
Given the EOQ, how many orders will be made annually?
- 10
E) What would be the annual order cost?
- $200.00
F) Given the EOQ, what is the total annual cost of managing (ordering and holding) the inventory?
- $400.00
G) What is the time between orders?
- 25 days
(Round your responses to two decimal places in this question if needed) George Heinrich uses 1,500 per year of a certain subassembly that has an annual holding cost of $45 per unit. Each order placed costs George $150. He operates 300 days per year and has found that an order must be placed with his supplier 6 working days before he can expect to receive that order. For this subassembly, find:
Economic order quantity.
- 100 units
B) Annual holding cost.
- 2250.00
C) Annual ordering cost.
- 2250.00
D) Reorder point.
30 units
(Round your responses to two decimal places in this question if needed) Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates its production facility 300 days per year. It has orders for about 9,000 flashing lights per year and has the capacity of producing 60 per day. Setting up the light production costs $49. The holding cost is $0.10 per light per year.
A) What is the optimal size of the production run?
- 4200
B) What is the annual holding cost?
- 105
C) What is the annual setup cost?
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What are the fixed cost and variable cost form th ebelow list?
3000 Bottles price 25782.62 years Website hosting 1201.28Stickers printing price 5723.45Shipment of stickers 2280Delivery Order charges 3793.32Customs duty 744Clearance 360Shipping documentation 413MPL charges 554.38Rent of warehouse 6500Wages 3000Raw Materials 4000Unit Selling price
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For a table manufacturing company, selling price for a
table is $188.00 per Unit, Variable cost is $28.00 per
Unit, rent is $4, 670.00 per month and insurance is $
271.00 per month. Company wants to expand its
business and improve the table quality, it wants to
increase the selling price for a table to $350.00 per Unit,
Variable cost to $48.00 per Unit, bigger area will have
rent $6, 537.00 per month and insurance is $406.00 per
month At what point will the company be indifferent
between the current mode of operation and the new
option?
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sarah earns 400 per week and spends 15% of her earning on tranpotation every week
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Q19
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Q17
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MC
$35
ATC
AVC
15
10
500
Units of output
Cost per unit ($)
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Mc
Graw
Hill
c) Assuming that the cost of employing each worker is $220 per day (including wages and materials), and Custom Made Pot has daily
fixed costs of $400, fill in Table B given below: Round your AVC and MC answers to one decimal place.
Number
of
TP
WorkersOutput
1
2
3
A
5
6
10
80
TVC($)
220
440
180
240 830
280
1100
294
1320
660
6
TFC
Table B
TC
400
620
620
400
840
400 1060
400
1280
1280
400
1500
1720
400
AVC($)
ATC
22
62
5.5
10.5
3.67 5.89
3.67
5.33
3.9
4.5
5.3
5.8
MC($)
dy On the graph given below, plot the following points showing the quantity and dollar amounts.
point of diminishing returns (D)
most productive point (P)
economic capacity (E)
Tools
O
220
220
220
Once a point is plotted, a tool icon will pop up. You can use this to enter exact co-ordinates for your points as needed.
n
D
220
220
?
P
Prev
1 of 8
SAMSUNG
Next >
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Cost/Unit
$30
$23
$20
$18
$10
25
ATC₁
30
ATC₂
40
ATC₂
45
ATC4
Output
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Q
VC
AVC
TC
ATC
MC
$30
1
$40
$50
3
$80
4
$90
What are the fixed costs?
If the firm can sell its product for $80, it will sell
(circle one) of $
units for a profit/loss/breakeven
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A jeweler is considering producing a limited edition diamond bracelet, and she is trying to decide how many bracelets to produce. The table gives her estimated total cost for various production levels as well as the price she would charge
for each bracelet.
Number of
bracelets
100
200
300
400
500
600
Total cost
(thousands)
Price per
bracelet
$215
$7900
$420
$7400
$625
$5900
$820
$5000
$1015
$4200
$1205
$3600
(a) of the production levels listed in the table, which gives the highest profit?
(b) Estimate the marginal cost and marginal revenue when 400 bracelets are made.
marginal cost
$
marginal revenue
$
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Note: Plot your polnts In the order In which you would like them connected. Line segments will connect the polnts automatically.
200
175
ATC
150
125
AVC
100
MC
50
25
1
3
4
6
QUANTITY (Pairs of boots)
Grade It Now
Save & Continue
COSTS (Dollars per pair)
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It costs $50,000 to start a production process. Variable cost is $25 per unit and
price is $45 per unit. What is the break-even volume?
2000 units
1000 units
1111 units
2500 units
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The diagram illustrates isoprofit curves and the marginal cost curve of MQ2020, a luxury car manufactured by MQ Motors. Which statement incorrectly describes the diagram?
10,000
9,000
8,000-
7,000-
6,000-
5,000-
4,000
3,000
2,000
1,000
Price, marginal cost (5)
C(8,7500)
*A (35,6000)
(40, 3300)
Profit-QP-AC)
Marginal cost
hoprofit curve $150,000
boprofit curve $70,000
Zenic procure (AC
0
0 10 20 30 40 50 60 70 80 90 100 110 120
Quantity of cars, Q
Select one
Oa if the price is equal to the average cost, MQ Motors' profits decrease until it sells 40 cars, and then start to increase.
Ob Given the same quantity of cars, MQ Motors" profits increase as price increases.
OC The shape of MQ Motors' cost function affects the shape of their isoprofit curves
Od. MQ Motors incurs increasing marginal cost
Oe It MQ Motors sells 35 cars at P-$5,000, it makes profits higher than $70,000.
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The cost, in dollars, of producing x yards of a certain fabric is
C(x) = 900 + 12x - 0.1x² +0.0005x³
and the company finds that if it sells x yards, it can charge p(x) = 27-0.00021x dollars per yard for the fabric.
(a) Graph the cost and revenue functions.
y
8000
6000
4000
2000
y
15 000
10 000
5000
R
C
100
R
=²
C
100
200
200
300
300
X
400
400
X
Use the graph to estimate the production level for maximum profit.
283.092
x yards
y
15 000
10 000
5000
y
15 000
10 000
5000
R
100
R
C
100
200
200
(b) Use calculus to find the production level for maximum profit. (Round your answer to two decimal places.)
186.63
yards
300
300
400
400
X
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I not sure how to do the last part. Part c. I think I got the tops parts but I am not sure
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Use the values in the table below to answer the following questions.
Q
TC
ATC
1
35.91
9
101.1
10
-(C)-
33
1070
34
-(D)-
35.91
-(A)-
-(B)-
35320
-(E)-
MC
16.88
107.6
127.4
1102
1167
Cell (A) stands for the total cost of 9 units. Its value should be
A. 323.52
B. 909.8
C. 151.65
O D. 252.75
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Ace Shoe Company sells heel replacement kits for men's shoes. It has fixed costs of $10 million and unit
variable costs of S5 per pair. If the company charges $15 per pair, how many pairs must it sell to break even
? And what dollar profit level would the company achieve if 15 million kits were sold ? Please show the
necessary steps of how to get the results.
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Identify a minimum of 5 features/tools that are offered.
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Estimate the unit selling price of an item for which the following data is available.
Labor
10 hours at $48/hr
Overhead
170% of labor
Material Costs
$64 each
Packing Costs
20% of labor
Subcontract Cost
$13 each
25% of selling price
50% of selling price
Sales Commission
Profit
$5876.00 each
$6096.00 each
$367.25 each
$2612.00 each
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please be clear with answer
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Best Ink Printing Co. received an order to print a minimum of 50,000 tickets for a concert. They have three printing machines available to meet the order they received. The set-up cost of these machines and the unit
cost/ticket printed using each machine along with their maximum production are provided in the table below:
Machine
A
B
976400
C
Cost per unit
$18
$21
$24
Maximum Production
30,000
25,000
30,000
Formulate an all-integer linear programming model to find the required number of tickets produced by each machine in order to minimize the production cost.
What is the optimal solution for the number of tickets produced by machine B?
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\table[[\table[[Output], [per], [Month]], Price, \table[[Total], [Revenue]], Total Cost,Total Profit, \table [[Marginal], [
Revenue**
Output
per
Month
Price
0
$1,000
100
Total
Revenue
$0
1,000 100,000
Total Cost Total Profit
Marginal Revenue* Average
Revenue*
Profit per
Cost Total Cost
Unit (Price -
ATC)
$60,000 -$60,000
90,000
10,000
$1,000
$300
$900
$100
200
1,000 200,000
130,000
70,000
1,000
400
650
350
300
1,000 300,000
180,000
120,000
1,000
500
600
400
400
1,000
400,000
240,000
160,000
1,000
600
600
400
500
1,000
500,000
320,000
180,000
1,000
800
640
360
600
1,000 600,000
420,000
180,000
1,000
1,000
700
300
700
1,000 700,000
546,000
154,000
1,000
1,260
780
220
800
1,000 800,000
720,000
80,000
1,000
1,740
900
100
900
1,000
900,000 919,800 -19,800
1,000
1,998
1,022
-22
"Note that output levels are calibrated in hundreds in this example; that's why we have divided the change in total costs and
revenues from one output level to another by 100 to calculate marginal revenue and marginal…
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A process has a cycle time of 10 minutes. The throughput time is 10 hours. If the throughput time is reduced to 5 hours without changing the cycle time, what is the change in inventory (as a percentage)?
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The figure below shows graphs of the fixed cost function, total cost function
and the total revenue function for a certain commodity.
20
8000
7000
6000
5000
4000
Dollars ($)
3000
2000
1000
-10
-1000+
10 20 30
40
Units
(a) What is the break-even point?
(x,y) e.g. (295,7650)
(b) What are the fixed costs? $
TR
Percent of capacity=
50 60
TC
If the selling price per unit is $50, and the variable cost per unit is $40:
FC
70 80 90 100
enter the answer in the form
(c) If the maximum production capacity of the commodity is 110, express the
break-even units as a percent of capacity?
% (round to two decimal places if necessary)
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T/F
The fixed cost remains same at all level of output.
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Recommended textbooks for you
- Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
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