Answer
The answer and procedures of the exercise are attached in the image below.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer:
The expansion should be adding more workers.
Explanation:
In this case we must analyze the marginal productivity of each production factor and relate it to its cost.
The marginal productivity of the copiers, assumed constant, can be calculated as
In other words, evevry copier added will rise production in 10,000 pages/day.
The marginal productivity of the copiers, assumed constant, can be calculated as
Every worker added will increase production in 5,000 pages/day.
If the cost of a copier is 4 times the cost of a worker, the break-even point should be when the copier marginal productivity is 4 times the marginal productivity of a worker.
That means that the new copier has to produce a marginal production of at least 4*5,000=20,000 pages per day.
Because the marginal productivity of the copier is below this break-even point (10,000<20,000), we can conclude that the expansion should be adding more workers, as long as the marginal productivities remain the same.
Answer:
The cost per equivalent unit for materials is $25.76.
Explanation:
As the complete question is not given here, the question is as attached with the solution.
From the data
At the beginning, there are no units.
At the end 1,000 Completed while the total started units are 1400
Remaining units are 1400-1000=400
Now for these 400 units,
As 60% are complete regarding materials thus that is calculated as
400*60%= 400 × .6 = 240
Equivalent units for materials: 1,000 units completed + 60% of 400 (ending) = 1,240 units
$31,944 / 1,240 equivalent units per materials = $25.76
