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FinnZ [79.3K]
3 years ago
14

Kearney, Inc., makes kitchen tools. Company management believes that a new model of coffee grinder would sell well at a price of

$66. The company estimates unit materials costs to be $16 for the model, and overhead costs would average $18 per unit. The local wage rate for direct labor is $28 per hour. Kearney has a goal of earning an operating profit of 20 percent of manufacturing costs for each of its products.
What direct labor-hour input could Kearney allow to still achieve its profit goal?
Business
1 answer:
IRINA_888 [86]3 years ago
3 0

Answer:

$0.15 hours per unit

Explanation:

Given that

Direct material cost = $16

Assume Direct labor cost = X

Manufacturing overheads = $18

Profit margin = 20%

Direct labor per hour cost = $28

The computation of direct labor-hour input is shown below:-

Total manufacturing cost = X + $34

Total cost of goods sold = (X + $34) × 1.7 = $66

Direct labor cost per unit

= (X + $34) = $38.82

= $38.82 - $34

= $4.32

Direct labor hours per unit = Direct labor cost per unit ÷ Direct labor per hour cost

= $4.32 ÷ $28

= $0.15 hours per unit

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You pay your neighbor $400 to cut the tree down.

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Answer:

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In a marketing context, customers seek a fair return in goods and/or services for their hard-earned money and scarce time. They
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Answer:

the answer is They are seeking Economic <u>Value</u>.

Explanation:

In a marketing context, customers seek a fair return in goods and/or services for their hard-earned money and scarce time. They are seeking <u>value</u>, which reflects the relationship of benefits to costs, or what you get for what you give.

Value is variable, lets zero in on Economic Value since the subject is effective demand from a customer.

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How is Japan dealing with economic concerns about an aging population?
natulia [17]

The correct answer to this open question is the following.

Japan is dealing with economic concerns about an aging population in the following way. The Japanese government is inviting the seniors in Japan to not retire, instead, encouraging them to continue to work and be productive. Statistics show that 20 to 22% of Japan's population is seniors, older than 65 years. So that is why the Japanese government invites people to keep on being productive, generation some income for them, and extending the moment in which the government has to pay pensions.

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Answer:

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