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- True or false 3.3 the strength of water transportation is high investment cost.Gooey Bites sells snack packs for $3 per pack. Variable expenses involved in producing snack packs are estimated to be $1 per pack and fixed costs for operating the production line are estimated to be $14,000. How many snack packs must Gooey Bites sell to break even? a. 14,000 b. 3,500 c. 4,667 d. 7,000Problem 1. During your first month as an employee at Greenfield Industries (a large drill-bitmanufacturer), you are asked to evaluate alternatives for producing a newly designed drill bit on aturning machine. Your boss’ memorandum to you has practically no information about what thealternatives are and what criteria should be used. The same task was posed to a previous employeewho could not finish the analysis, but she has given you the following information: An old turningmachine valued at $350,000 exists (in the warehouse) that can be modified for the new drill bit.The in-house technicians have given an estimate of $40,000 to modify this machine, and they assureyou that they will have the machine ready before the projected start date (although they havenever done any modifications of this type). It is hoped that the old turning machine will be able tomeet production requirements at full capacity. An outside company, McDonald Inc., made themachine seven years ago and can easily do the…
- Multiple Choice A. −0.5 B. −1.0 C. −1.5 D. −2.0 E. −0.4If Bob expects a task to take 7 hours and he has an efficiency factor of 70%, what is the estimates hours for this task to take if Bob has 100% efficiency? A )7 B) 10 C) 17 D) 28During your first month as an employee atGreenfield Industries (a large drill-bit manufacturer),you are asked to evaluate alternatives forproducing a newly designed drill bit on a turningmachine. Your boss’ memorandum to you haspractically no information about what the alternativesare and what criteria should be used. The same taskwas posed to a previous employee who could notfinish the analysis, but she has given you the followinginformation: An old turning machine valued at $350,000exists (in the warehouse) that can be modified for thenew drill bit. The in-house technicians have givenan estimate of $40,000 to modify this machine, andthey assure you that they will have the machine readybefore the projected start date (although they havenever done any modifications of this type). It is hopedthat the old turning machine will be able to meetproduction requirements at full capacity. An outsidecompany, McDonald Inc., made the machine sevenyears ago and can easily do the same…
- OA company has introduced a new product which is sold through an electronics retailer. The retailer has estimated that demand will depend on the final price (p) according to the demand curve: D=2,000,000−2000p. The production cost is $101 per product. a.What wholesale price should OA charge? At this wholesale price, what retail price should the retailer set? b.What are the profits for OA and retailer at equilibrium? c.If OA decides to discount the wholesale price by $32, how much of a discount should the retailer offer to customers if it wants to maximize its own profit? What are the changes in profitsof OA and retailer?Production capacity of neck process. There are two alternatives, a and B. The annual fixed cost of scheme a is US $40000 and that of scheme B is US $30000; the unit variable cost of scheme a is US $10 / piece and that of scheme B is US $11 / piece. Revenue can be realized for each piece 15 $ 1Calculate the break even point of the two schemes. 2What kind of output can the two schemes achieve the same profit? 3) If the annual demand is expected to be 12000 units, which option can achieve higher profits?12) What is meant by Spare capacity? Define it. 13) How did the Yom Kippur War and the so called “Arab” Oil Embargo affect petroleum property valuation PNGE404 PLS SOL
- 39. Which one of these is an example of a variable cost? a. None of the choices b. Rent c. Raw material expenses d. Depreciation costsThe town council of Frostbite, Ontario, is trying to decide whether to build an outdoor skating rink which would cost $1.2 million and last for only one season. Operating costs would be zero. Yearly passes would be sold to anyone who wanted to use the rink. If p is the price of the pass in dollars, the number demanded would be q = 1600 - 0.5p. The council has asked you to advise them on building the rink. You should tell them that Group of answer choices a. revenues won’t cover construction costs at any ticket price. There is no way to increase total consumer surplus by building the rink. b.if the rink is built and price is set to maximize profits, the town makes a profit and consumers will be better off. c.if the rink is built and price is set to maximize profits, the town makes a profit but consumers are worse off than without a rink. d.there is no price at which ticket revenues cover costs but the total consumer surplus from the rink exceeds costs. e.None of the above.…During your first month as an employee at Engro. Industries (a large drill-bit manufacturer),you are asked to evaluate alternatives for producing a newly designed drill bit on a turningmachine. Your boss’ memorandum to you has practically no information about what thealternatives are and what criteria should be used. The same task was posed to a previousemployee who could not finish the analysis, but she has given you the following information:An old turning machine valued at $350,000 exists (in the warehouse) that can be modified forthe new drill bit. The in-house technicians have given an estimate of $40,000 to modify thismachine, and they assure you that they will have the machine ready before the projected startdate (although they have never done any modifications of this type). It is hoped that the oldturning machine will be able to meet production requirements at full capacity. An outsidecompany, Descon Engg. Inc., made the machine seven years ago and can easily do the…