Answer:
$2 per unit per year
Explanation:
The calculation of the inventory carrying cost per unit per year is shown below:
Inventory Carrying cost per unit per year is
= Total Annual Inventory cost ÷ Economic order quantity
= $400 ÷ 200 units
= $2 per unit per year
It is computed By dividing the total annual inventory cost from the economic order quantity, in order to get the inventory carrying cost
Therefore, the first option is correct
Answer: $1,200,000
Explanation:
The firm should include $1,200,000 as the cost of the Manufacturing facility for a new project in it's analysis.
This is because $1,200,000 is the opportunity cost of not selling the facility. The old costs that were incurred for the land and the facility are to be considered sunk costs as they have already been incurred and the only relevant cost now is what the market will pay for the facility which is $1,200,000.
Answer:
$3,418,800
Explanation:
Contribution margin per hour:
Plush: 4 units per hour x $231 = $924
Supreme: 2 units per hour x $317 = $634
Since contribution margin per hour from Plush is higher than Supreme, we select Plush as the most profitable sales. Hence,
Total contribution = 3,700 hours available x $924 = $3,418,800
Hope this helps!
Producers, as define in economics, as the person who makes the commodity ready for the market. This are people who manufacture raw materials to make it something that others are demanding or wanted. They are somewhat part of the supply side of the economy.
