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barxatty [35]
3 years ago
11

The Big Black Bird Company​ (BBBC) has a large order for special​ plastic-lined military uniforms to be used in an urgent milita

ry operation. Working the normal two shifts of 40hours each per​ week, the BBBC production process usually produces 2 comma 600uniforms per week at a standard cost of ​$125each. 72 employees work the first shift and 32the second. The contract price is ​$240per uniform. Because of the urgent​ need, BBBC is authorized to use​ around-the-clock production six days per week. When each of the two shifts works 72hours per​ week, production increases to 3 comma 800 uniforms per week but at a cost of ​$152 each.
a. Did the multifactor productivity ratio increase, decrease or remain the same? If it changed, by what percentage did it change?
b. Did the labor productivity ratio increase decrease or remain the same? If it changed, by what percentage did it change?
c. Did weekly profits increase decrease, or remain the same?
Business
1 answer:
zysi [14]3 years ago
8 0

Answer:

first we must calculate the original value of the goods produced = $240 x 2,600 = $624,000

original cost = $125 x 2,600 = $325,000

original amount of labor used = (72 + 32) x 40 = 4,160 hours

value of goods after change = 3,800 x $240 = $912,000

cost after change = 3,800 x $152 = $577,600

labor used after change = (72 + 32) x 72 = 7,488 hours

a) original multifactor productivity = $624,000 / $325,000 = $1.92 per dollar spent

multifactor productivity after change = $912,000 / $577,600 = $1.58 per dollar spent

multifactor productivity decreased by 17.71%

b) original labor productivity = $624,000 / 4,160 hours = $150 per labor hour

labor productivity after change = $912,000 / 7,488 hours = $121.79 per labor hour

labor productivity decreased by 18.81%

c) change in weekly profits = ($912,000 - $577,600) - ($624,000 - $325,000 = $35,400 increase

You might be interested in
Airlines can price discriminate by determining people's _______ to pay for luggage accommodations. Some customers will check a b
mr Goodwill [35]

Answer:

Willingness to pay

Revenue

Two

Elastic

Inelastic

Explanation:

Price discrimination is when a producer or a seller charges different prices for the same product usually in different markets.

In price discrimination, a seller attempts to remove or reduce consumer surplus by charging the consumer at his willingness to pay. For price discrimination to be effective, a seller must be able to estimate the willingness to pay of consumers.

Price discrimination is successful when a seller earns higher profits when she discriminates compared to when she didn't price discriminate.

Price discrimination exists in the airline industry. One of the ways price discrimination exists in the airline industry is through charging to check bags. Customers ( people who board airplanes) are distributed into two groups- those who won't pay to check bags and those who would pay to check bags.

It is assumed that those who would pay to check their bags have a price inelastic demand because they are indifferent to paying an extra amount for their luggage.

Inelastic demand is defined as when a small change in price has no effect on quantity demanded.

While it is assumed that those who won't pay to check their bags have an elastic demand because they are unwilling to pay extra to check their luggages.

Elastic demand is when a change in price has effect on quantity demanded.

5 0
3 years ago
The one-year forward rate of the British pound is quoted at $1.63, and the spot rate of the British pound is quoted at $1.60. Th
AysviL [449]

Answer:

The forward is discount, which is -1.8%

Explanation:

The forward rate is the rate of interest that is applicable or applied to the financial transaction, which will happen in the near future.

The percent is computed as:

= (Spot rate / Forward rate) - 1

where

Spot rate is $1.60

Forward rate is $1.63

Putting the values above:

= ($1.60 / $1.63) - 1

= $0.9815 - 1

= -1.8 %

which is forward discount.

8 0
3 years ago
Packer Corporation’s year 8 income statement reported $130,000 in income before provisions for income taxes. To compute the prov
romanna [79]

Answer:

$127,000

Explanation:

Calculation for the amount to be reported as taxable income

Using formula

Taxable income=[Year 8 Income Statement + Rent received in advance -Income from exempt municipal bonds -(Depreciation deducted for income tax purposes-Depreciation deducted for financial reporting)]

Let plug in the formula

Taxable income=[$130,000+$ 22,000 -$ 17,000 -( $ 18,000 -$ 10,000 )]

Taxable income=$130,000+$ 22,000 -$ 17,000 -$8,000

Taxable income=$127,000

Therefore the amount that Packer should report as taxable income will be $127,000

5 0
3 years ago
The date on a monthly income statement prepared on April 30 is written as________.
Simora [160]

Answer:

(B) For Month Ended April 30, 20--.

Explanation:

Since, the income statement reflects the activities of the specific firm/entity/company for a particular period, therefore the date on income statement is always written in below manner depending on the number of months it represents.

If 12 months are represented by the income statement, then the date on such income statement is written as:

For year ended April 30,20--.

If 6 months are represented by the income statement, then the date on such income statement is written as:

For six months ended April 30,20--.

If 1 month is represented by the income statement, then the date on such income statement is written as:

For month ended April 30,20--.

Keeping in view the above discussion, the answer to the question shall be  

(B) For Month Ended April 30, 20--.

4 0
3 years ago
Ted, a project manager, wants to invest in a project with an initial cost of $58,500 and cash flows of $32,400 and $38,500 in Ye
Art [367]

Answer:

The project will not be approved

Explanation:

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator  

Cash flow in year 0 = $-58,500

Cash flow in year 1 = $32,400

Cash flow in year 2 = $38,500

IRR = 13,41%

profitability index = 1 + (NPV / Initial investment)  

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Cash flow in year 0 = $-58,500

Cash flow in year 1 = $32,400

Cash flow in year 2 = $38,500

I = 10%

NPV = $2,772.72

PI = 1 + $2,772.72 / $58,500 = 1.04

The project will not be approved because the PI is less than the amount of return the boss wants even though the IRR is less than the discount rate

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

4 0
3 years ago
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