A product is __________ that can be offered through a voluntary marketing exchange.ê
1 answer:
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Answer:
Jacobs will earn $1,080,000
Explanation:
The earnings of the work factor are made up of two factors: Transfer Earnings + Economic Rents.
Transfer earnings are defined as the minimum required amount that a company must pay its workers to keep them in the workplace. Below this amount, the worker will leave his job. In this case, the Transfer Earnings are $ 80,000, which is the base salary of every designer.
On the other hand, the Economic Rents are the additional income that the worker receives and that is above the minimum level they need to supply his work (In this case, the additional income is given by Jacobs' special ability). In numerical terms, the Economics Rents amount is equivalent to the difference between the earnings obtained by the Jacobs company and the earnings obtained by the other companies.
That is: 1,500,000 - 500,000 = 1,000,000.
Therefore Jacobs salary is equivalent to 80,000 + 1,000,000 = 1,080,000.
From this, it can be deduced that approximately 92% of Jacobs' salary is equivalent to Economic Rents. From the theoretical point of view, this makes sense, because the demand for designers (which is a highly qualified profession) is very inelastic, and the more inelastic the greater the proportion of Economic Rents as part of the salary. In the annexes, I show it graphically.
Answer:
(A) Mexican supplier cost = $445,800 or $89.16 average cost.
In-house cost = $714,000 or $142.8
(B) Mexican supplier total weighted score = 0.265 or 22.43%
In-house supplier weighted score= 0.238 or 23.8%
(C) Yes, explaination below
Explanation:
Mexican Supplier cost breakdown:
Quota price $83 X 5000 = $415, 000
Transport cost
1. to transport 5000 doors would require making a total of 20 trips from Mexico to USA (5000/250 doors)
2. at a cost of $825 per trip, total cost to transport doors is = $16,500.
Sending Engineers costs and Negotiation cost =
$5000 + $1000
(Transport+Sending Engineers cost) =
$22,500
Inventory carrying cost= 20% of cost of storing the goods. (total of all other cost) 20% x 22500 = $8300
Total cost = $445,800 or $89.16 average cost.
Total weighted score average:
Using the formula;
Weight= score x rating
Score = Weight/rating (making score subject of the formula)
Mexican Weighted
score1= 16%/3 = 0.0533, + 0.12 score2, + 0.035 + score3, + 0.056 + score4. = 0.265.
American weighted score
Using same formula;
0.04 score1, + 0.15 score2, + 0.014 score3, + 0.034 score 4 = 0.238.
The company should outsource the product. Why? because it will reduce total cost of doors, making them cheaper for if they do so, resulting in higher profit.
