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svet-max [94.6K]
4 years ago
15

An economy is employing 2 units of capital, 5 units of raw materials, and 8 units of labor to produce its total output of 640 un

its. Each unit of capital costs $10; each unit of raw materials, $4; and each unit of labor, $3. The per-unit cost of production in this economy is
Business
1 answer:
beks73 [17]4 years ago
3 0

Answer:

$0.1  

Explanation:

The per unit cost of a production is the sum of variable cost and fixed cost divided by the total number of units produced. The per unit cost is given by the formula:

Per unit cost = (Variable cost + Fixed cost) / Number of units produced

Variable cost = Cost of raw material = Units of raw material × Cost of each unit of raw material = 5 units × $4/unit = $20

Fixed cost = Cost of labor + Capital =(Units of capital × Cost of each unit of capital) + (Units of labor × Cost of each unit of labor)  = (8 units × $3/unit) + (2 units × $10/unit) = $24 + $20 = $44

Variable cost + Fixed cost = $20 + $44 = $64

Per-unit cost of production = (Variable cost + Fixed cost) / Total output = $64 / 640 = $0.1  

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No gain or loss.

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4 years ago
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7 0
2 years ago
A July sales forecast projects that 5,000 units are going to be sold at a price of $12.50 per unit. The management forecasts 2%
Pavlova-9 [17]

Answer:

P_i = 5000 units *12.5\frac{dollars}{unit} = 62500 dollars

And for the new case we know that the sales increase by a factor of 2%, so then we can find the new number of sales like this:

1.02*5000 units= 5100 units

And the Total August sales would be given by:

P_f = 5100 units *12.5 \frac{dollars}{unit}= 63750 dollars

And the correct answer for this case would be:

$63,750

Explanation:

For this case the original number of sales for this case is 5000 units and the unitary price is given by 12.5 \frac{dollars}{unit}

And the total sales for the original case would be given by:

P_i = 5000 units *12.5\frac{dollars}{unit} = 62500 dollars

And for the new case we know that the sales increase by a factor of 2%, so then we can find the new number of sales like this:

1.02*5000 units= 5100 units

And the Total August sales would be given by:

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And the correct answer for this case would be:

$63,750

7 0
3 years ago
Gilbert would like to foster goal commitment in his department. He decides to do this by encouraging the collaboration of employ
lawyer [7]

Answer: Participation strategy  

 

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