Answer:
Contribution per unit of scare resource (in hour) = $24 per hour
Explanation:
The question falls under the limiting factor analysis
<em>When a business is faced with a problem of shortage of a resource which can be used to produced more than one product type, to maximize the use of the resource , the business should allocate it for production purpose in such a way that </em><em>it maximizes the contribution per unit of the scare resource.</em>
Therefore Santario Company should allocate the machine hours to maximize the contribution per unit of machine hour.
Contribution per unit of scare resource is determine as follows:
Contribution per unit of scare resource for Model K-3
Contribution per unit of Model K-3 = $6
Machine time per unit = 15 minutes
<em>Contribution per unit of scare resource in minutes</em>
=Contribution per unit/Machine time per unit
= 46/15 minutes
= $0.4 per minute
Contribution per unit of scare resource (in hour)
$0.4 per minutes× 60
= $24 per hour
Answer:
$300,00
Explanation:
In a situation where the interest rate is said to be 10% the amount that Martin must provide in order to fund this bequest will therefore be:
Bequest first year $9,000/(Interest rate 10%-
Increase of 7 % per year)
Hence:
$9,000/0.03
=$300,000
Therefore $300,00 will be provided to fund the bequest
Answer:
The correct answer is letter "A": Commodity goods.
Explanation:
A differentiation strategy is an approach adopted by companies to make the goods or services they offered unique compared to their competitors. Most firms tend to use price as the main key to the difference between their products and the competitors'.
Thus, <em>the differentiation strategy is less likely to be applied in commodity goods because they are inherently unique such as oil, natural gas, precious metals or foreign currencies</em>.
Answer: $116
Explanation: Opportunity cost refers to the loss of profit by an individual or a firm when one chooses to go for best alternative instead of the second best alternative.
In the given case, John has two alternatives and if he chooses to go on the trip it would cost him the loss of $116 salary that he receives.
Thus the opportunity cost of going on the trip would be $116.
