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KiRa [710]
3 years ago
10

Kevin is an auto mechanic. He spends 33 hours when he replaces the shocks on a car and 22 hours when he replaces the brakes. He

works no more than 5454 hours a week. He routinely completes at least 44 shocks replacements and 66 brake replacements a week. If he charges ​$500500 for labor replacing shocks and ​$250250 in labor for replacing​ brakes, how many jobs of each type should he complete a week to maximize his​ income?
Business
1 answer:
ahrayia [7]3 years ago
8 0

Answer:

To maximize income, Kelvin should use 5445 hours to replace 165 shocks.

Explanation:

The number of hours taken for replacing the shocks is 1.5 times higher than replacing the brakes. (1.5 = 33 hours/ 22 hours)

While the income from replacing the shocks is double/ 2 times higher than replacing the brakes (2.0 = $500500/$250250)

It’s viable that replacing the shocks is more effective in term of income compared to hours  taken.

If Kevin use his maximum 5,454 hours a week for replacing the shocks, then he can replace 165 shocks and earn $82,582,500.

If the customer resource is unlimited, then it It is better to focus on replacing shocks only.

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However, the debt issues also raises the probability of bankruptcy. You company has a 30% chance of going bankrupt after 3 years
Otrada [13]

Answer:

Expected Cost = $60,000

Present Value of Expected Cost = $45,079

Explanation:

The chance that the bankruptcy will happen is 30% and the cost it will incur if it happens is $200,000. The expected cost is the probability of the event happening multiplied by the cost of the event happening.

Expected Cost = 200,000 * 0.3

= $60,000

The present value of this cost assuming a discount rate of 10% is;

= \frac{60,000}{(1 + 0.10)^{3} }

= $45,078.89

= $45,079

8 0
3 years ago
Calculate the total revenue, total costs, and total gross profit the company will earn on the sale of L-Ten, Triol, and Pioze. A
trapecia [35]

Answer:

L-Ten, Triol and Pioze

Revenue $1,000,000  ; $2,000,000 ; $700,000

Total Costs $750,000  ; $750,000  ; $510,000

Gross Profits $250,000  ; $1,250,000  $190,000  

Explanation:

Gross Margin percentage = Gross margin / Revenue

Gross Margin Percentage = Total Gross Margin of all products / Total revenue

Gross Margin Percentage = $1,690,000 / $3,700,000 = 0.45

Gross margin percentage is 45%

7 0
3 years ago
All of the following statements concerning shortage are true, EXCEPT: Group of answer choices
mariarad [96]

Answer:

The correct answer is letter "C": shortage costs increase as total carrying costs increase.

Explanation:

A shortage takes place when the quantity demanded is higher than the supply at the current price. Typically, shortages occur because of an increase in demand, a decrease in supply or due to government policies. Shortage costs are those costs a firm is responsible for because the is no enough stock in its inventory. When shortage costs increase, the carrying costs do not necessarily increase.

6 0
3 years ago
If you waited until late in life to start saving, what two things should you try to do?
klemol [59]
Get a job and save money now
5 0
4 years ago
Read 2 more answers
A company determined that the budgeted cost of producing a product is $30 per unit. On June 1, there were 80,000 units on hand,
gtnhenbr [62]

Answer:

c) $9,000,000

Explanation:

The cost of good sold = Cost per unit × Quantity sold

  Quantity sold = 300,000, cost per unit = $30

The cost of sold = $30 × 300,000 =  $9,000,000

This can be confirmed as follows:

                                                                  Unit

opening inventory                                     80,000

Production(see note below)                    <u> 340,000</u>

Available or sale                                       420,000

Closing inventory                                    <u>(120,000)</u>

Units sold                                                 <u>300,000</u>        

Cost of units sold = 300,000 × $30 = $9,000,000

Note :

Production budget = sales budget + closing inventory - opening inventory

= 300,000 + 120,000 - 80,000 = 340,000 units

                               

6 0
3 years ago
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