Sobeys sells fruit trays consisting of pineapple and melons. The manager of the fruit department obtains pineapples at a wholesale price of $2.50 per kg, grapes at $2.15 per kg, strawberries at $1.50 per kg and melons at $1.85 per kg. He is required to produce 10 kg of the mixed fruit. He is required to add 2 kg of strawberries and 3 kg of grapes. What is the maximum weight of pineapple that he can put in the mix in order to have an effective wholesale cost no greater than $2.00 per kg? The maximum weight of pineapple is _____ kg.
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Sobeys sells fruit trays consisting of pineapple and melons. The manager of the fruit department obtains pineapples at a wholesale price of $2.50 per kg, grapes at $2.15 per kg, strawberries at $1.50 per kg and melons at $1.85 per kg. He is required to produce 10 kg of the mixed fruit. He is required to add 2 kg of strawberries and 3 kg of grapes. What is the maximum weight of pineapple that he can put in the mix in order to have an effective wholesale cost no greater than $2.00 per kg? The maximum weight of pineapple is _____ kg.
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- You are the general manager of a firm that manufactures personal computers. Due to a soft economy, demand for PCs has dropped 50 percent from the previous year. The sales manager of your company has identified only one potential client, who has received several quotes for 10,000 new PCs. According to the sales manager, the client is willing to pay 5800 each for 10,000 new PCs. Your production line is currently idle, so you can easily produce the 10,000 units. The accounting department has provided you with the following information about the unit (or average) cost of producing three potential quantities of PCs: 10,000 PCS15,000 PCsMaterials (PC component) $600$600 Depreciation300225 Labor150150 Total unit cost20,000 PCs $ 600150150$1,050 $975 $900 Based on this information, should you accept the offer to produce 10,000 PCs at $800 each? Explain.Jim has been employed at Gold Key Realty at a salary of $2,000 per month during the past year. Because Jim is considered to be a top salesman, the manager of Gold key is offering him one of three salary plans for the next year: (1) a 25% raise to $2,500 per month; (2) a base salary of $1,000 plus $600 per house sold; or, (3) a straight commission of $1,000 per house sold. Over the past year, Jim has sold up to 6 homes in a month. Write down the month salary payoff table for Jim.You are the manager of medium-sized company that assembles personal computers in Ghana. You purchased most components such as random access memory (RAM), which is an input for your personal computers, on a competitive market. Based on your marketing research, consumers view personal computers in the Ghanaian market as a normal good. One morning, you picked up a copy of the Graphic Business, published by the Graphic Communications Group limited, and read an article indicating that the price of RAM have been increased effective the next day, forcing manufacturers to produce computers at a high unit cost. In addition, the article indicated that consumer incomes are expected to fall over the next two years as the economy dips into recession. Explain your answer with an appropriate diagram, how these events would affect the equilibrium price and quantity.
- You are the general manager of a firm that manufactures personal computers. Due to a soft economy, demand for PCs has dropped 50 percent from the previous year. The sales manager of your company has identified only one potential client, who has received several quotes for 10,000 new PCs. According to the sales manager, the client is willing to pay $800 each for 10,000 new PCs. Your production line is currently idle, so you can easily produce the 10,000 units. The accounting department has provided you with the following information about the unit (or average) cost of producing three potential quantities of PCs: Based on this information, should you accept the offer to produce 10,000 PCs at $800 each? Explain.Andrew has decided to open an online store that sells home and garden products. After searching around, he chooses the software company Initech to provide the software for his website since its product required the least amount of specialized investments for him to use it. They agreed upon a price of $3,000. To use Initech’s software, Andrew makes $1,000 in sunk capital investments and spends 40 hours learning how to use Initech’s software, which is very different from other software packages. Both Andrew and Initech view Andrew’s time as worth $25 per hour, and Initech is fully aware of the investments Andrew must make to use its product. After Andrew’s investments were made, Initech came to Andrew and asked for more money. How much do you think its asked for?The Janie Gioffre Drapery Company makes three types of draperies at two different locations. At location I, it can make 10 pairs of deluxe drapes, 20 pairs of better drapes, and 13 pairs of standard drapes per day. At location II, it can make 20 pairs of deluxe, 50 pairs of better, and 6 pairs of standard per day. The company has orders for 1000 pairs of deluxe drapes, 2100 pairs of better drapes, and 600 pairs of standard drapes. If the daily costs are $700 per day at location I and $900 per day at location II, how many days should Janie schedule at each location to fill the orders at minimum cost? location I days location II days Find the minimum cost.$
- Andrew has decided to open an online store that sells home and garden products. After searching around, he chooses the software company Initech to provide the software for his website since their product required the least amount of specialized investments for him to use it. They agreed upon price of $6,000. To use Initech’s software, Andrew makes $1,800 in sunk capital investments and spends 45 hours learning how to use Initech’s software, which is very different from other software packages. Both Andrew and Initech view Andrew’s time as worth $30 per hour and Initech is fully aware of the investments Andrew must make to use their product. After Andrew’s investments were made, Initech came to Andrew and asked for more money. What do you think is the new price Initech requested Andrew to pay? $___________You are a manager of a firm that experiences economies of scope between all the products manufactured. If the company decides to sell off an unprofitable business line, it could lead to: a major reduction in costs. only a minor reduction in costs. only a minor reduction in sales. a major reduction in sales.You are consultant at large international consultancy (“PharmCons”), specialized in consulting firms in the pharmaceutical industry. PharmCons has its Asian-Pacific headquarter in Singapore. Dr. Lee, the CEO of a newly established Singaporean pharmaceutical firm (“SinPharm”), which owns the protected patent for vaccine for Dengue-fever, approaches PharmCons. He is an excellent biologist but he and his employees are not well trained in managerial economics. So he needs advise on how to “make the best out of his patent” in an economic sense. Your colleagues at PharmCons have already estimated the market demand function for the vaccine. The accountancy division of SinPharm provides information with respect to relevant production costs. The (inverse) demand for the vaccine is estimated as P = 301 - 4Q. The marginal costs (MC) are equal to MC = 1 and fixed costs (FC) are equal to FC = 1000. Your boss ask you to provide Dr. Lee answers to the following questions: (a) Is SinPharm a…
- You are consultant at large international consultancy (“PharmCons”), specialized in consulting firms in the pharmaceutical industry. PharmCons has its Asian-Pacific headquarter in Singapore. Dr. Lee, the CEO of a newly established Singaporean pharmaceutical firm (“SinPharm”), which owns the protected patent for vaccine for Dengue-fever, approaches PharmCons. He is an excellent biologist but he and his employees are not well trained in managerial economics. So he needs advise on how to “make the best out of his patent” in an economic sense. Your colleagues at PharmCons have already estimated the market demand function for the vaccine. The accountancy division of SinPharm provides information with respect to relevant production costs. The (inverse) demand for the vaccine is estimated as P = 301 - 4Q. The marginal costs (MC) are equal to MC = 1 and fixed costs (FC) are equal to FC = 1000. Your boss ask you to provide Dr. Lee answers to the following questions: (a) Is SinPharm a…Olay’s Cosmetics, Inc., offers a line of cosmetics and perfume products marketed through leading department stores. Product manager John Henry recently raised the suggested retail price on a popular line of mascara from Rs.12 to Rs.15 following increases in the costs of labor and materials. Unfortunately, sales dropped sharply from 17200 to 10000 units per month. In an effort to regain lost sales, manager hired a consultant. The consultant found after investigation that Olays competitors decreased the price of popular line of mascara similar to that sold by Olays from Rs.12 to Rs.10. Consultant suggested that Olay should run a coupon promotion featuring Rs.5 off the new regular price. The promotion was judged to be a success, as it proved to be highly popular with consumers. In the period prior to expiration, coupons were used on 40% of all purchases and monthly sales rose to 16,000 units. Calculate the arc price elasticity implied by the initial response to the Olays price increase.In…You were recently hired to replace the manager of the Roller Division at a major conveyor- manufacturing firm, despite the manager’s strong external sales record. Roller manufacturing is relatively simple, requiring only labor and a machine that cuts and crimps rollers. As you begin reviewing the company’s production information, you learn that labor is paid $12 per hour and the last worker hired produced 80 rollers per hour. The company rents roller cutters and crimping machines for $15 per hour, and the marginal product of capital is 110 rollers per hour. What do you think the previous manager could have done to keep his job?