Each month a company can rent capital for $7.500 per unit and can hire workers for $2.500 each Currently me company is using 4 u
nits of capital and 6 workers to produce 10.000 unto of output the combination of capital and labor represents a cost-minimizing equilibrium Draw an isoquant/is cost diagram to illustrate the situation. a. Using we point drawing tool plot the point that represents the combination amenity used Label your point E. b. Using we line drawing toot draw me Budget constrain Label your line BC. c. Using the 3-point curved line drawing tool draw the indifference curve Label your line 'IC'
1 answer:
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Answer:
$671.92
Explanation:
Note: The full question is attached as picture below
Product R3
Labor-related cost = 40736/7200*5400
Labor-related cost = $30,552
Production orders = 65970/1600*1000
Production orders = $41,231
Order size = 433175/7100*3100
Order size = $189,133
Total overhead = Labor-related cost + Production orders + Order size
Total overhead = $30,552 + $41,231 + $189,133
Total overhead = $260,916
Annual production and sales of Product of R3 = 900 u nit
Overhead cost per unit = Total overhead / Unit
Overhead cost per unit = $260,916 / 900
Overhead cost per unit = $289.92
Direct material = $226
Direct labor = (26*6) = $156
Unit product cost = Overhead cost per unit + Direct material + Direct labor
Unit product cost = $289.92 + $226 + $156
Unit product cost = $671.92.
