A furtiture manufacturer company has gathered the cost information for its production process in one of its product line during April, which in presented as followsCost ItemClassificationCostFactory supervinor salaryFixed$14,550 per monthLomber (direct materiala)Variable$108,000 totalProduction worker ragesVariable514.00 per hourMachine DepreciationTariable51,800 totalLease on factoryFixed59.000 per monthDuring April, the company manufactured 2,000 units using 1,800 labor bours. Based this information, the estimated total cost of producing 2,500 units during the upcoming month is elosest to:OA $208,000OB. SI72.250OC S208,000OD S202,250OE S166,400

Labor hours required to produce 2500 units = 1800/2000*2500 = 2250 labor hours

A furniture manufacturer company has gathered the cost information for its production process in one of its product line during April, which in presented as follows Cost Item Classification Cost Factory supervisor salary Fixed $14,550 per month Lumber (direct materiala) Variable $108,000 total Production worker wages Variable 514.00 per hour Machine Depreciation Variable 51,800 total Lease on factory Fixed 59.000 per month During April, the company manufactured 2,000 units using 1,800 labor bours. Based this information, the estimated total cost of prodocing 2,500 units during the upcoming mouth in closest OA S208,000 OB. S172.250 OC S208,000 OP s202.250

A furniture manufacturer company has gathered the cost information for its production process in one of its product line during April, which in presented as follows Cost Item Classification Cost Factory supervisor salary Fixed $14,550 per month Lumber (direct materiala) Variable $108,000 total Production worker wages Variable 514.00 per hour Machine Depreciation Variable 51,800 total Lease on factory Fixed 59.000 per month During April, the company manufactured 2,000 units using 1,800 labor bours. Based this information, the estimated total cost of prodocing 2,500 units during the upcoming mouth in closest OA S208,000 OB. S172.250 OC S208,000 OP s202.250

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 18RQ: What is deflation?

See similar textbooks

Similar questions

1. Direct laborrate: $15.00perhour Production material: $375 per 100 items Factory overhead: 125% of direct labor Packing costs: 75%ofdirectlabor Desiredproﬁt: 20%oftotalmanufacturing cost use the above information to answer how many units must be sold to achieve a proﬁt of $25,000? [Note that the units sold must account for total production costs (direct and overhead) plus desired proﬁt. 2. A small textile plant was constructed in 2004. The major equipment, costs, and factors are shown below. Estimate the cost to build a new plant in 2014 if the index for this type of equipment has increased at an average rate of 12% per year for the past 10 years. Show work and Select the closest answer. a) $4,618,000 b) $10,623,000 c) $14,342,000 d) $ 14,891,000
Zodiac Furniture is considering the production of anew line of metal offi ce chairs. Th e chairs can be producedin-house using either process A or process B. Th e chairs canalso be purchased from an outside supplier. Specify the levelsof demand for each processing alternative given the costs in thetable. Fixed Cost Variable Cost Process A $20,000 $30Process B $30,000 $50Outside Supplier $0 $50
Metters Cabinets, Inc., needs to choose a productionmethod for its new office shelf, the Maxistand. To help accomplishthis, the firm has gathered the following production cost data: PROCESS TYPE ANNUALIZEDFIXED COST OFPLANT & EQUIP. VARIABLE COSTS (PER UNIT) ($)LABOR MATERIAL ENERGY MassCustomization $1,260,000 30 18 12Intermittent $1,000,000 24 26 20Repetitive $1,625,000 28 15 12Continuous $1,960,000 25 15 10Metters Cabinets projects an annual demand of 24,000 units forthe Maxistand. The Maxistand will sell for $120 per unit. a) Which process type will maximize the annual profit from pro-ducing the Maxistand? b) What is the value of this annual profit?
1. To resolve the issue of Coronavirus testing, a city decided to set up a plant to producelow cost testing kits. This facility will operate for 12 months and then it will bedismantled. It will cost the city $P to buy the main machine. In addition, the city willspend $45,000 as planning cost before the work commences. The monthly operating andmaintenance cost to run the facility will be $52,500. The city also expects to loseadditional $43,000 every month for the duration of the facility. It is estimated that, thisplant will save taxpayers who will use the testing facility about $15 per usage. The cityexpects 0.5% of its 2 Million citizens to use the facility every month for 12 months. Thefacility will be upgraded at a cost of $40,000 at the end of month 5, $75,000 at the end ofmonth 10, and will then be dismantled at the end of month 12 for $100,000. Afterdismantling, the city will sell the used machine at it salvage value of $72,000. Usingbenefit-cost ratio analysis with an interest…
Problem 6Cannes Croissants (not a real company) wishes to determine the optimum production quantity for its topselling product, almond croissants. The annual demandfor almond croissants is 12,000 units. The setup costs fora production run of the croissants is US$15. The holdingcost per unit per year is US$0.50. Production is mostefficient when 80 croissants are produced per day. Thecompany operates 300 days during a year.a What is the economic production quantity (EPQ)?b How many production runs will there by per year?c What is the maximum inventory level?d What is the total annual cost (in US dollars)?e What is the length of a production run in days?
Suppose ADJ Corporation's brcakeven sa les volume is $450,000 with fixedcosts of $200.000.(a) Compute the contribution margin pe rcentage.(b) Compute the selling price if va ri a ble costs a re $ 12 per unit.
A firm manufactures padded shipping bags. A cardboard cartonshould contain 100 bags, but machine operators fill the cardboardcartons by eye, so a carton may contain anywhere from 98 to 123bags (average = 105.5 bags). Each padded bag costs $0.03.Management realizes that they are giving away of their outputby overfilling the cartons. One solution is to automate the filling ofshipping cartons. This should reduce the average quantity of bagsper carton to 100.3, with almost no cartons containing fewer than100 bags. The equipment would cost $18,600 and straight-line depreciationwith a 10-year depreciable life and a $3600 salvage value would beused. The equipment costs $16,000 annually to operate. 200,000cartons will be filled each year. This large profitable corporation hasa 28% combined federal-plus-state incremental tax rate. Assume a10-year study period for the analysis and an after-tax MARR of15%.Compute:(a) The after-tax present worth(b) The after-tax internal rate of return(c) The…
A firm manufactures padded shipping bags. A cardboard cartonshould contain 100 bags, but machine operators fill the cardboardcartons by eye, so a carton may contain anywhere from 98 to 123bags (average = 105.5 bags). Each padded bag costs $0.03.Management realizes that they are giving away of their outputby overfilling the cartons. One solution is to automate the filling ofshipping cartons. This should reduce the average quantity of bagsper carton to 100.3, with almost no cartons containing fewer than100 bags. The equipment would cost $18,600 and straight-line depreciationwith a 10-year depreciable life and a $3600 salvage value would beused. The equipment costs $16,000 annually to operate. 200,000cartons will be filled each year. This large profitable corporation hasa 28% combined federal-plus-state incremental tax rate. Assume a10-year study period for the analysis and an after-tax MARR of15%.Compute:(a) The after-tax present worth(b) The after-tax internal rate of return(c) The…
Dana owns a building that she purchased for $600,000. Its current replacement cost is $2 million. The building is covered up to $1,000,000 for fire-related perils by ZRP Insurance Company, with an 80% coinsurance provision and a $2,000 deductible. Last week, a fire broke out in the building, causing $900,000 in covered damage. What will ZRP Insurance Company pay for this loss? A)$562,500 B)$560,500 C)$718,000 D)$700,000
For a firm total revenue is 120000, cost of raw materials is 40000, wages of labor 18000, other expenses are 5000, Total implicit cost is 33000.What is accounting profit. Select one: O a. 68000 Ob. 24000 c. 57000 Od. 87000
ABC Manufacturing produces a product for which the annual demand is 10,000 units. Production averages 100 per day, while demand is 40 per day. Holding costs are $10.00 per unit per year; set-up costs $500.00. A. Compute for the EOQ. B. Compute for the total costs (ordering and holding costs).
Tennis Products, Inc., produces three models of high-quality tennis rackets. The following table contains recent information on the sales, costs, and profitability of the three models: MODEL AVERAGEQUANTITYSOLD (UNITS/MONTH) CURRENTPRICE TOTALREVENUE VARIABLECOST PERUNIT CONTRIBUTIONMARGIN PERUNIT CONTRIBUTIONMARGIN* A B C Total 15,000 5,000 10,000 $30 35 45 $450,000 175,000 450,000 $1,075,000 $15.00 18.00 20.00 $15 17 25 $225,000 85,000 250,000 $560,000 *Contribution to fixed costs and profits.The company is considering lowering the price of Model A to $27 in an effort to increase the number of units sold. Based on the results of price changes that have been instituted in the past, Tennis Products’ chief economist estimates the arc price elasticity of demand to be –2.5. Furthermore, she estimates the arc cross elasticity of demand between Model A and Model B to be approximately 0.5 and between Model A and Model C to be approximately 0.2. Variable costs…