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dexar [7]
4 years ago
13

Lake Charles Seafood makes 550 wooden packing boxes for fresh seafood per​ day, working in two​ 10-hour shifts. Due to increased

​ demand, plant managers have decided to operate three​ 8-hour shifts per day instead. The plant is now able to produce 700 boxes per day.
Required:
a. Before the change in work rules, the company's productivity per day
b. Based on the changes made, the percent increase in productivity
c. If production is increased to boxes per day (with the three 8-hour shifts), the new productivity equals
Business
1 answer:
Mashcka [7]4 years ago
5 0

Answer:

a. Before the change in work rules, the company's productivity per day

= 550 packing boxes / 20 hours = 27.5 packing boxes per hour

b. Based on the changes made, the percent increase in productivity

productivity after the change = 700 packing boxes / 24 hours = 29.17 packing boxes per hour

productivity change = (29.17 - 27.5) / 27.5 = 6.07%

c. If production is increased to boxes per day (with the three 8-hour shifts), the new productivity equals

700 packing boxes per day (prior productivity of 550 packing boxes per day, which represents a 27.27% increase)

productivity = output / unit of time

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The consumer price index (CPI) can be used to measure inflation. There are potential problems with this process though that can
DIA [1.3K]

Answer:

a. Overstates Inflation.

In the case of Mary and Bob, the CPI would have already increased but in this case the price of the minivan increased as well. This will overstate inflation because it will not measure the general rise in price alone (inflation), it will also measure the rise in price as a result of the new minivan having better features.

b. Understated Inflation

Donna's case represents an understated inflation because the quantity shrank yet the price stayed the same. This means that the price is now buying less quantity than it used to which is inflation because more dollars are now required to buy the previous amount. This was not however recorded as there was no change in price.

c. Overstates Inflation

In the case of Zach, the inflation will be overstated because Zach is no longer buying bagels and is now buying muffins so continuing to use bagels as a representative good in the basket of goods used to calculate CPI would be overstating it.

d. Accurate representation of Inflation

In Chris's case, the increase in the price of the same shoe over the years has been because of a general rise in prices and not because it is a different model. It is the same shoe and its price is rising generally so this is an accurate depiction of inflation.

6 0
3 years ago
Having some clients who are less knowledgeable about investing and seem to be more trusting of their firm, the management of a f
xxMikexx [17]

Answer:

The correct answer is b) a Ponzi scheme.

Explanation:

The Ponzi Scheme is a fraudulent investment operation that involves paying investors interest obtained from the money of new investors (and not from the generation of genuine profits). It is a pyramidal system, in which the only way to share benefits requires that participants recommend and capture (refer) to more clients with the objective that new participants produce benefits to primary participants.

This system does not invest in financial or other instruments, it only redistributes money from some investors to others, so the system works only if the number of investors in the pyramid continually grows; once people stop entering the "business", the scammer is prevented from fulfilling his promise and the pyramid collapses

7 0
3 years ago
Leon exchanges an office building which he held as investment property for a bowling alley. His office building has a basis of $
exis [7]

Answer:

According to Section 1031 of Internal Revenue Code, an exchange of like-kind property is referred to as like-kind exchange, if the exchange meets the following criteria:

  • The property should be exchanged only for the 'like-kind' (same class) property.
  • The 'like-kind' property that is in exchange should be either used in operations of business or held for investment purposes.
  • The exchange should be done under specific timing restrictions or requirements (for indirect exchanges through third parties).

Explanation:

A) Explanation: Since both the properties in exchange are real properties which are used in business, this is a like-kind exchange

B)  

Description                           Amount ($)

Fair market value of bowling alley   120,000

<u>Add: Mortgage value L is relieved off     40,000</u>

Amount reali7ed                      160,000

<u>Less: Adjusted basis             (175:000) </u>

<u>Realized loss by L                      (15,000) </u>

C) Explanation: Since the loss realized is due to exchange, the loss is not recognized.

D) Explanation: Since the loss is not recognized, the character of gain or loss could not be

E) Explanation: The total of realized loss, $15,000 (From Requirement (b)) is deferred.

F) Determine the basis of property acquired in exchange, bowling alley.

Description                         Amount ($)

Fair market value of bowling alley        120,000

<u>Add: Deferred loss                   15,000 </u>

<u>Basis of bowling alley                  135,000 </u>

8 0
3 years ago
Suppose Musashi and Rina are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix
natulia [17]

Answer:

a) Dominant strategy is for Rina to choose Right.

b) Musashi chooses left and Rina chooses right

Explanation:

As per the data given in the question,

a).

A winning strategy is the tactic a player selects regardless of the tactic other player selects.

When Rina selects left, Musashi selects right because  (7>4)

When Rina selects right, Musashi selects left because  (6>4)

When Musashi selects left, Rina selects right because (6>1)

When Musashi selects left, Rina selects right because  (7>6)

So only dominant strategy is for Rina to choose Right

b)

In a Nash equilibrium, the players decide their strategies taking in consideration other strategy.

Hence, Musashi chooses left and Rina chooses right, (payoff: 6,1)

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