Mervon Company has two operating departments: mixing and bottling. Mixing occupies 23,045 square feet. Bottling occupies 18,855
square feet. Indirect factory costs include maintenance costs of $204,000. If the maintenance costs are allocated to operating departments based on square footage occupied, determine the amount of maintenance costs allocated to each operating department.
Operation management is multidisciplinary in nature , whose main purpose is to manage the company's resources such that they produce the highest degree of efficiency for the company. It involves controlling the processes of production, allocating resources in order to produce the final good or services. In this case the given description is of operations management.
An annuity is a series of payments that is made at equal intervals. Examples are monthly home mortgage payments, regular deposits to a savings account, pension payments.
This problem require us to calculate the expected return on entire portfolio. The expected return on every stock that will be the part of portfolio is given in the question and their weightage in portfolio is also provided in the problem.
We can easily calculate the expected return using following weightage average formula.
