Wood Carving Corporation manufactures three products. Because of a recent lack of skillled wood carvers, the corporation has had
a shortage of available labor hours. The following per unit data relates to the three products of the corporation:
Letter Openers Elvis Statues Candle Holders
Sales Price $30 $80 $42
Variable Costs $20 $40 $20
Labor Hours Required 1 6 2
Assume that Wood Carving has 1,800 labor hours available next month. Also assume that Wood Carving can only sell 800 units of each product in a given month. What is the maximum amount of contribution margin that Wood Carving can generate next month given this labor hour shortage?
A. $12,000
B. $19,000
C. $19,600 (Correct Answer)
D. $19,800
E. None of the Above
Letter Openers Elvis Statues Candle Holders
Sales Price $30 $80 $42
Variable Costs $20 $40 $20
Labor Hours Required 1 6 2
Assume that Wood Carving has 1,800 labor hours available next month. Also assume that Wood Carving can only sell 800 units of each product in a given month. What is the maximum amount of contribution margin that Wood Carving can generate next month given this labor hour shortage?
A. $12,000
B. $19,000
C. $19,600 (Correct Answer)
D. $19,800
E. None of the Above
1 answer:
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Answer:
The incomplete part of the question is "Using a cap-and-trade system of tradable emission allowances will eliminate half of the sulfur dioxide pollution at a cost of $1 million per year. If the permits are not tradable, what will be the cost of eliminating half of the pollution? If permits cannot be traded, then the cost of the pollution reduction will be $1 million per year." The full question is attched as picture as well
1) Tradable permit system
Then lower MAC firm will abate the all pollution units
Then as MAC1 = $250, MAC2 = $275
Firm 1 = Consolidated electric
Firm 2 = Commonwealth utility
Then 1 will sell all permits to 2, at a price between $250 & $275.
So total cost of abatement of 20 units = MAC1 * 20
= $250 * 20 Unit
= $5,000
2) Non-tradable permits
Total cost = MC1*10 + MC2*10
= $2,500 + $2,750
= $5,250
Answer:
$76,620.83
Explanation:
According to the scenario, computation of the given data are as follows
Future Value (FV) = $100,000
Rate of interest = 10% yearly
Rate of interest (Rate) = 10%÷ 2 = 5% semiannually
Number of period (Nper) = 9 × 2 = 18
Face value = $100,000
Payment (pmt) = $100,000 × (6%÷2) = $3,000
By putting the value in excel present value formula, we get,
PV = $76,620.83
Attachment is attached below
