Answer:
producing 200 units of Model A would be the best of the 25,000 lbs of steel and 4,000 zinc available
With a profit of 200 units x $90 each = 18,000 dollars
Explanation:
Model A contribution:
90 / 125 = 0.72
90 / 20 = 4.5
Model B contribution:
70/ 100 = 0.7
70/ 30 = 2.33
As model B generates lower contribution for both scarse resources is not convinient to produced altogether.
It should produce Model A as much as it can and only fill with Model B if needed
25,000 lbs of steel / 125 per Model A = 200 units of A
200 units of A x 20 lbs of zinc each = 4,000 lbs of zinc
producing 200 units of Model A would be the best of the 25,000 lbs of steel and 4,000 zinc available
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Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
Perpetuity.
Explanation:
This is explained to be a type of annuity which is seen to be in position of receiving infinite amount of payments periodically. It is also tagged to be a financial instrument that is seen to pay consistently but periodically. In our world today, it is put to be the present value of a stream of cash that goes on, into the future, forever. In as much as cash payments are infinite, it’s possible to calculate their present total value because the value of each payment incrementally decreases with each year to the point that it approximates zero. Research has shown that in a lot of cases, economic analysts are seen to use this calculation to determine the value of stocks that pay fixed dividends, real estate that earns rent and annuity insurance products.
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