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dmitriy555 [2]
3 years ago
9

Sam can only hire two full-time employees, but he needs even more help to make the two products he sells. Product Alpha has a co

ntribution margin of $750 per unit of limited resource and Product Beta has a contribution margin of $975 per unit of limited resource. He thinks he will be able to afford hiring an extra employee to work 150 hours per month, but he is unsure which product to have the employee work on. Which product would result in the highest contribution margin
Business
1 answer:
blagie [28]3 years ago
8 0

Answer:

Which product would result in the highest contribution margin - Product Beta

Explanation:

Here is a situation where production is limited by a particular resource - Labor Hours.

To determine which product to manufacture, Sam has to rank the Contribution per unit of the limiting factor - labor of Product Alpha and Product Beta

Contribution per limiting factor are already calculated as:

Product Alpha -  $750 per unit of limited resource

Product Beta - $975 per unit of limited resource

The Product with Highest Contribution per limiting factor results in highest contribution margin and must be worked on first

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The following are exogenous (not directly affected by income): G = 11 I = 4 X = M = 0 The consumption function is: C = k + cY, w
nikitadnepr [17]

Answer: the answer is 90.0

Explanation:

From the question above, we are given:

G = 11

I = 4

X = M = 0

Consumption function is:

C = k + cY

Where:

k = 3

c = 0.8

The GDP of a nation is given as:

Y = C + I + G + NX

By imputing the values into the GDP equation, we have:

Y = k + cY + 4 + 11 + 0

Y = 3 + 0.8Y +15

Y - 0.8Y = 18

0.2Y = 18

Y = 90.0

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3 years ago
Wanda takes $3,000 from her savings account that pays 5 percent interest per year and uses the funds to purchase a computer for
Salsk061 [2.6K]

Answer:

$1,150

Explanation:

Implicit rental rate refers to the cost that a company incurred by spending money as opposed to what that money could earn if it were invested in something else. Therefore since in a year the computer was worth $1000 less and Wanda also lost out on the 5% that the savings account would have generated which would be $150. Then her total cost is that of $1,150

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3 years ago
Flawless Cosmetic Company manufactures and distributes several different products. The company currently uses a plantwide alloca
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Answer:

Option (D) is correct.      

Explanation:

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Total Machine Hours:

= Machine hours × Number of cases

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= 5.30

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= 80 + 30 + (3 × 5.3)

= 80.00 + 30.00 + 15.90

= $125.90

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Mia and Jack are two chocolate producers. Mia packs her chocolates in attractive boxes and charges slightly more than Jack does.
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