Answer:
Explanation:
Incremental cost
Inspection cost prior to shipment - 45,000
Upgrading of equipment - 400,000
Incremental benefit - 25,000
The incremental cost of improving quality far outweigh the incremental benefit
Even though loss of profit was avoided by retaining existing customers , yet the quality improvement program dies not guarantee additional customers and profit to write off or reduce the incremental cost .
Therefor , it is not advisable fort the company to go on with the quality program.
= Total revenue − Total cost; or = (Unit price × Quantity sold) − (Fixed cost + Variable cost).
Answer:
A principal-agent game.
Explanation:
The principal-agent problem is a conflict in priorities between the owner of an asset and the person to whom control of the asset has been delegated.
The problem can occur in many situations, from the relationship between a client and a lawyer to the relationship between stockholders and a CEO.
Resolving a principal-agent problem may require changing the system of rewards in order to align priorities or improving the flow of information or both
Answer:
Explanation:
A point on U=800 is (5, 16)
From BL:
400*F+100D =4000
400*5+100*16 =3600<4000
Therefore u = 800 affordable.
U= 1200
F = 1200/10D
If D = 20
F = 1200/200
=6
Now from BL:
400*6+100*20= 2400+2000=4400>4000
Not affordable.
Maximization:
L = 10DF+ʎ[100*D+400*F – 4000]
Differentiating wrt D and F:
dL/dD = 10F + ʎ*100
dL/dF = 10D +ʎ*400
equating to zero;
ʎ= -F/10
ʎ=-D/40
equating the two:
F/10=D/40
D = 4F
From BL:
400*F+100*D = 4000
400F+100*4F = 4000
800F = 4000
F = 5
D = 4*5=20
Advertising would be something over the world or state country etc that many people will see something that is advertised on tv or a bill board, personal selling would be something that your showing off on your on like on ebay etc that isnt sponsered by any companys and is for your own doing . Hope this helped ! (:
