Answer:
800
Explanation:
The objective here is to determine the socially optimal production of X.
For this to occur ; it is crucial that both firm must merge together.
Therefore; the Profit will be = Total revenue - Total Cost
From the question; the total revenue = 6X + 5Y ; &
The total cost is : ![\dfrac{X^2}{200} + \dfrac{Y^2}{100} - 2X](https://tex.z-dn.net/?f=%5Cdfrac%7BX%5E2%7D%7B200%7D%20%2B%20%5Cdfrac%7BY%5E2%7D%7B100%7D%20-%202X)
Now: The profit = ![6X+5Y - \dfrac{X^2}{200}- \dfrac{Y^2}{100}-2X](https://tex.z-dn.net/?f=6X%2B5Y%20-%20%5Cdfrac%7BX%5E2%7D%7B200%7D-%20%5Cdfrac%7BY%5E2%7D%7B100%7D-2X)
= ![8X+5Y - \dfrac{X^2}{200}- \dfrac{Y^2}{100}](https://tex.z-dn.net/?f=8X%2B5Y%20-%20%5Cdfrac%7BX%5E2%7D%7B200%7D-%20%5Cdfrac%7BY%5E2%7D%7B100%7D)
If the socially optimal production of X is the differential of the equation ![8X+5Y - \dfrac{X^2}{200}- \dfrac{Y^2}{100}](https://tex.z-dn.net/?f=8X%2B5Y%20-%20%5Cdfrac%7BX%5E2%7D%7B200%7D-%20%5Cdfrac%7BY%5E2%7D%7B100%7D)
(X) = ![8-\frac{2X}{200} =0](https://tex.z-dn.net/?f=8-%5Cfrac%7B2X%7D%7B200%7D%20%3D0)
= ![8-\frac{X}{100} =0](https://tex.z-dn.net/?f=8-%5Cfrac%7BX%7D%7B100%7D%20%3D0)
= ![\dfrac{X}{100}=8](https://tex.z-dn.net/?f=%5Cdfrac%7BX%7D%7B100%7D%3D8)
= 800
Thus the social optimal production of X = 800
Answer:
a. $1,482,000
Explanation:
The computation of the total manufacturing overhead cost is shown below;
But before that first we need to do following calculations
The Variable overhead for 50000 machine hours is
= $1,260,000 - $150,000
= $1,110,000
As depreciation is not variable cost so it would be excluded
Now for 60,000 machine hours, the variable overhead is
= ($1,110,000 ÷ 50,000) × 60,000
= $1,332,000
And, the fixed overhead is $150,000 i.e depreciation expense
So, the total manufacturing overhead cost is
= Fixed manufacturing overhead + variable manufacturing overhead
= $150,000 + $1,332,000
= $1,482,000
A bike, because then all the money he has saved for a car can go into a super raw bike that he can trick out and it will last longer as well as save him money.
Answer:
a) True
Explanation:
Cost leadership strategy strives to focus on reducing per unit cost of production and thus charging lower price of the product as compared to the competitors.
The strategy is followed when the product is identical and cannot be differentiated based on quality or brand name, consumers only focus on products which are priced cheapest.
Answer:
$7,200
Explanation:
The computation of the total manufacturing overhead assigned is shown below:
= ($168,640 + $127,840 + $554,400 + $1,078,000) ÷ $514,368
= 375% per direct-labor dollar.
Now
= $514,368 ÷ 8,037
= $64 per DL hour.
And,
= $64 × 30 direct labor hours
= $1920.
So,
Manufacturing overhead is
= 1920 × 375%
= $7,200