(a) Microville has the absolute advantage producing cars. Because the most it can produce is 10 while Macroville can only produce 5.
(b) The opportunity cost is 5 cars if Macroville decides to use all of its resources and produce 20 boats.
(c) Microville has the comparative advantage in producing cars? Because its opportunity cost for 1 car is 1 boat while Macroville's cost for 1 car is 4 boats.
(d) If each country were to specialize in producing either cars or boats and then trade for the other product, Macroville makes 20 boats and Microville makes 10 cars. Each country produces the goods it has a comparative advantage in. Cars for Microville and boats for Macroville.
Answer:
Machine setups= $70 per setup
Machining= $10 per machine hour
Inspection= $45 per inspection
Explanation:
<u>To calculate the allocation rate for each activity, we need to use the following formula:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Machine setups= 140,000 / 2,000= $70 per setup
Machining= 240,000 / 24,000= $10 per machine hour
Inspection= 54,000 / 1,200= $45 per inspection
Answer:
Berry Bloom Co.
This type of problem that requires Berry to perform an analysis to determine how many bouquets of flowers to procure in preparation for Mother's Day is a:
Newsvendor Problem.
Explanation:
a) Data and Calculations:
Selling price of bouquets of flowers = $20/bouquet
Cost price of bouquets of flowers = $15/bouquet
Profit per bouquet during Mother's Day = $5 ($20 - $15)
After-holiday selling price of the bouquets of flowers = $10/bouquet
Loss per bouquet of flower after the holiday = $5 ($15 - $10)
b) The Newsvendor model describes the challenges facing Berry Bloom as it gets ready for the Mother's Day holiday. The company must decide the volume of bouquets of flowers to procure prior to the holiday. The purchase decision becomes a problem because the demand for flowers is not certain, and the company is aware that unsold bouquets will be sold at a loss of $5 per bouquet after the holiday.
Answer:
The establishment of a health and safety committee provides a forum for discussing worker health and safety issues across the entire workforce.
The health and safety committee are formed when there are health or safety related issues with workers of an organization. This committee highlights the hazards in a workplace or might help in bringing up new inspection procedures. It allows its members to instigate, develop, and implement health and safety control measures