a) Employ the skill circle model and calculate skill range, skill range and total labor cost per worker when there are 240 workers and unit training cost is $1260/h and the wage equals $80/h. Training cost is to be borne by the firm. b) Now assume the firm moves to a smaller location and the number of workers is only a quarter of what is was at the first location. Will overall labor cost be a quarter as well? Calculate!

a) Employ the skill circle model and calculate skill range, skill range and total labor cost per worker when there are 240 workers and unit training cost is $1260/h and the wage equals $80/h. Training cost is to be borne by the firm. b) Now assume the firm moves to a smaller location and the number of workers is only a quarter of what is was at the first location. Will overall labor cost be a quarter as well? Calculate!

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter4: Extent (how Much) Decisions

Section: Chapter Questions

Problem 3MC

See similar textbooks

Similar questions

Lucky Company's direct labor information for the month of February is as follows: Actual direct labor hours worked (AQ) 61,500 Standard direct labor hours allowed (SQ) 63,000 Total payroll for direct labor $ 774,900 Direct labor efficiency variance $ 18,000 The actual direct labor rate per hour (AP) for February, rounded to two decimal places, was:
Suppose that workmen are assembling a particular product for 40 working hours. Then they work on other products for 60 working hours before returning to the original assembly task for another 40 h and so forth. What is implied by recent research on the repeated production learning curves?
A small bank is trying to determine the number of tellers to employ. The total cost of employing a teller is $100 per day, and a teller can serve an average of 160 customers per day. On average, 210 customers arrive per day at the bank, and both service times and interarrival times are exponentially distributed. If the delay cost per customer day is $200, how many tellers should the bank hire?
If 150 labor hours were required to produce the 1st unit in a production run and 40 labor hours were required to produce the 7th unit, what was the learning curve rate during production?
A production function defines the output that can be produced A. as technology changes over time. B. in a given time period if no additional inputs are hired. C. for the average firm. D. at the lowest cost, given the inputs available. E. if the firm is technically efficient. Why E is correct? Please explain every opinion for me. Thx~ Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
The O'Neill Shoe Manufacturing Company will produce a special-style shoe if the order size is large enough to provide a reasonable profit. For each special-style order, the company incurs a fixed cost of $2,625 for the production setup. The variable cost is $55 per pair, and each pair sells for $80. (a) Let x indicate the number of pairs of shoes produced. Develop a mathematical model for the total cost (C) of producing x pairs of shoes. C = (b) Let P indicate the total profit. Develop a mathematical model for the total profit realized from an order for x pairs of shoes. P = (c) How large must the shoe order be before O'Neill will break even? x =
I need an explanation for part b) of the following questions. Scatter Diagrams and High-Low Cost EstimationFrom April 1 through October 31, Will County Highway Department hires temporary employees to mow and clean the right-of-way along county roads. The County Road Commissioner has asked you to help her in determining the variable labor cost of mowing and cleaning a mile of road. The following information is available regarding current-year operations: Month Miles Mowedand Cleaned LaborCosts April 350 $12,000 May 300 11,250 June 400 13,500 July 250 8,250 August 375 12,750 September 200 7,500 October 100 7,200 Use the information from the high- and low-volume months to develop a cost-estimating equation for monthly labor costs. Monthly labor costs = Answer + Answer X Plot the data on a scatter diagram. Using the information from representative high- and low volume months, use the high-low method to develop a cost-estimating equation for monthly…
All of these statements about the production function are true EXCEPT a) the curve features 3 distinct regions: increasing returns to scale, constant returns to scale, and diminishing returns to scale. b)the curve's shape matches and its description of the interaction between the graph's axes represents the law of diminishing returns c) it can be applied to many economic markets d) one variation is used to show the difference between firm and market specific risk
Azree an accountant, working for a foreign consultant firm and earning RM 78,000 per year is contemplating giving up his job and set up his own tax consultant firm. He estimates that renting an office would cost RM 780 per month, hiring a secretary with salary RM 1,500 per month and purchasing for required supplies would cost him RM 10,000 per annum. He estimated that his total revenues for the year would be RM 120,000. a)Define the explicit cost and implicit cost
Ceteris paribus, an increase in productivity would be represented by a movement from A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
A labor crew for placing concrete consists of one labor foreman at $26.70 per hour, one cement finisher at $29.30 per hour, five laborers at $24.45 per hour each, and one equipment operator at $33.95 per hour. Such a crew, called a C20 crew, can place 165 cubic yards of concrete per 8-hour day. Determine (a) the cost per day of labor for the C20 crew, (b) the cost of the C20 crew per cubic yard of concrete, and (c) the cost to place 550 cubic yards of concrete.
One of the components of direct cost of construction projects is equipment cost where a contractor has the option to rent or to buy the needed equipment for a construction activity. Suppose the contractor owns equipment needed for a project, in the cost estimates will the contractor charge equipment cost? Why?