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lukranit [14]
3 years ago
12

The maximum production of an oil refinery is 1400 barrels per day. The refinery can produce two types of fuel: gasoline and heat

ing oil. The production cost per barrel if $6 for gasoline and $8 for heating oil. The daily production budget is $9600. The profit is $3 per barrel on gasoline and $4 per barrel on heating oil. What is the maximum total profit that can be realized daily
Business
1 answer:
qwelly [4]3 years ago
7 0

Answer:

Maximum total profit = $4,800

Explanation:

When a business is faced with a problem of shortage of a resource which can be used to produced more than one product type, to maximize the use of the resource , the business should allocate it for production purpose in such a way that it maximizes the contribution per unit of the scare resource.

Therefore the Company should allocate the budget cost  to maximize the profit per production cost. This is done as follows:

Calculate the profit per budget cost and rank the product

                                              Gasoline      Heating oil

Profit per product cost         3/6=0.5                    4/8= 0.5

The two products produce the same profit per dollar of cost which is $0.5. So, they are equally ranked.

So the total profit= the budget cost × profit per budget

                           = 9,600× $0.5 =$4,800

Maximum total profit = $4,800

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RLW-II Enterprises estimated that indirect manufacturing costs for the year would be $60 million and that 12,000 machine hours w
Montano1993 [528]

Answer: $3,150,000

Explanation:

Total cost of production will be the total sum of the material costs, labor costs and indirect costs.

Indirect Costs

It was estimated that 12,000 machine hours would be used at a cost of $60 million.

Indirect cost per machine hour is;

= 60,000,000/12,000

= $5,000 per hour

With 200 machine hours, indirect cost is;

= 200 * 5,000

= $1,000,000

Total cost of production = 1,250,000 + 900,000 + 1,000,000

= $3,150,000

5 0
3 years ago
The risk-free rate of return is 2% and the expected return on the market portfolio is 8%. Oklahoma Oilco has a beta of 2.0 and a
solmaris [256]

Answer:

The multiple choices are as follows:

18.6%

14.0%

22.8%

25.0%

The second option is the correct answer,14%

Explanation:

The capital asset pricing asset model formula for computing a firm's cost of equity according to Miller and Modgiliani is given below:

Ke=Rf+Beta*(Mr-Rf)

Rf is the risk free of 2% which is the return expected from zero risk investment such as government treasury bills.

Beta is how risky an investment in a company is compared to similar businesses operating in similar business sector of the company given as 2.0

Mr is the expected return on market portfolio which 8%

Ke=2%+2*(8%-2%)

Ke=2%+2*(6%)

Ke=2%+12%=14%

3 0
3 years ago
Excise tax is levied in the __ of goods and services
lina2011 [118]

Answer:

its probably buying

Explanation:

6 0
3 years ago
What does a social media manager do?
Rufina [12.5K]

Answer:

A social media manager manages a social media star. They arrange appointments, or things like autograph signings, they monitor or arrange partnerships, they pay lawyers when needed

Explanation:

Thanks for asking this my older cousin is one. He used to manage beyonce for a short amount of time, he did snopp dogg, he did some other people that really dont  mean anything to me

if you need more explanation i got you

4 0
3 years ago
When considering the economic prospects of a country, it can be said that Group of answer choices the advantages of building bra
tankabanditka [31]

Answer:

Options 1 - 4 are True but 5 is FALSE

Explanation:

All options given are indicators of economic growth and strong economic performance

When considering the economic prospects of a country, it can be said that: 1. the advantages of building brand loyalty and gaining experience in a country's business practices is greater for a last-mover than for a first-mover <em>because the last-mover has the chance to learn from the mistakes of the first-mover and perfect on them</em>

2. countries which do not have property rights protection tend to achieve greater economic growth rates because<em> </em><em><u>prosperity and property rights are inextricably linked</u></em><em>. The importance of having well-defined and strongly protected property rights is now widely recognized among economists and policymakers</em>

3. the economic system and property rights regime are reasonably good predictors of economic prospects of a country because <em>widely accepted explanation is that </em><u><em>well-enforced property rights provide incentives for individuals to participate in economic activities, such as investment</em></u><em>, innovation and trade, which lead to a more efficient market.</em>

4. countries where property rights are not well respected and where corruption is rampant always have very low levels of economic growth because as stated in 3 above <u><em>ill-enforced property rights does not provide incentives for individuals to participate in economic activities, such as investment</em></u><em>, innovation and trade, which lead to a more efficient market.</em>

5.countries with command economies tend to achieve greater economic growth rates than free market economies.

<em>This is FALSE because one of the Command economy disadvantages include lack of competition and lack of efficiency. </em>

<em />

5 0
3 years ago
Read 2 more answers
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