Consider ktu as a production system in which the final product is graduate for this

The following two graphs show the markets for smartphones in Sweden and Norway. Use the graphs to answer the questions that foll

zalisa [80]

Answer:

Assume there are no transportation costs. With trade, the price of $22.5 brings about balance in exports and imports. At this price, 600 smartphones are traded. With trade, Sweden produces 900 smartphones and consumes 300 smartphones, and Norway produces 300 smartphones and consumes 900 smartphones.

Now suppose the per-unit transportation cost from Sweden to Norway is $5. With trade, the transportation cost changes the price of smartphones in Sweden to $25 and in Norway to $25. Sweden will produce 800 smartphones and consume 400 smartphones, thus exporting 400 smartphones. Norway will produce 400 smartphones and consume 800 smartphones, thus importing 400 smartphones.

Explanation:

With no transportation costs, Sweden shall export smartphones and Norway shall import smartphones because the market price is lower in Sweden than in Norway.

The demand and supply functions for smartphones in Sweden, derived from the given values, are:

$Q_{D} = 1200 - 40P\\$

$Q_{S} = 40P$

The export supply (ES) equation is:

$ES = Q_{S} - Q_{D}$

ES = 40P - (1200 - 40P)

ES = 80P - 1200

The demand and supply functions for smartphones in Norway, derived from the given values, are:

$Q_{D} = 1800 - 40P$

$Q_{S} = 40P - 600$

The import demand (ID) equation is:

$ID = Q_{D} - Q_{S}$

ID = 1800 - 40P - (40P - 600)

ID = 2400 - 80P

The equilibrium price and quantity traded is determined where ES = ID.

80P - 1200 = 2400 - 80P

This simplifies to P = 22.5

Q = 2400 - 80(22.5) = 600

Next, a transaction cost of $5 per unit is imposed from Sweden to Norway. This changes the ES function as follows.

New ES = 80(P - 5) - 1200

New ES = 80P - 1600

The new equilibrium is where New ES = MD.

80P - 1600 = 2400 - 80P

This simplifies to P = 25

Q = 80(25) - 1600 = 400

7 0

3 years ago

ZigZag Cola produces a lemon-lime soda. The production process starts with workers mixing the lemon syrup and lime flavors in a

Whitepunk [10]

Answer:

Zig Zag Cola

1. Classification of costs according to their category in the value chain:

a. Inbound logistics (relationship with suppliers):

New recipe $ 1,300

Lime flavoring $ 1,180

Bottles $ 1,040

Salt $ 50

Lemon syrup $ 16,000

Freight-in on materials $ 2,000

Total cost of Inbound logistics = $21,500

b. Operations:

Wages of workers who mix syrup $ 7,800

Plant janitors' wages $ 900

Plant utilities $ 650

Rearranging plant layout $ 1,600

Depreciation on plant & equipment $ 2,700

Total cost of Operations = $13,650

c. Outbound logistics:

Delivery truck drivers' wages $ 275

Depreciation on delivery trucks $ 175

Total outbound logistics cost $450

d. Marketing and sales:

Customer hotline $ 180

Sales commissions $ 325

Sales coupons for customers $ 770

Total marketing and sales cost $1,275

e. Service:

Customer hotline $ 180

Sales coupons for customers $ 770

Product Replacement $ 70

Total costs of Services $1,020

2. Subcategories of Production Costs:

Direct Materials:

New recipe $ 1,300

Lime flavoring $ 1,180

Bottles $ 1,040

Salt $ 50

Lemon syrup $ 16,000

Freight-in

on materials $ 2,000

Cost of materials $21,500

Direct Labor:

Wages of workers who mix syrup $ 7,800

Total cost of direct labor $ 7,800

Manufacturing Overheads:

Plant janitors' wages $ 900

Plant utilities $ 650

Rearranging plant layout $ 1,600

Depreciation on plant & equipment $ 2,700

Total Overheads $ 5,85

Explanation:

a) Data and Calculations:

Costs incurred (in thousands)

Direct Materials:

New recipe $ 1,300

Lime flavoring $ 1,180

Bottles $ 1,040

Salt $ 50

Lemon syrup $ 16,000

Freight-in

on materials $ 2,000

Cost of materials $21,500

Direct Labor:

Wages of workers who mix syrup $ 7,800

Total cost of direct labor $ 7,800

Manufacturing Overheads:

Plant janitors' wages $ 900

Plant utilities $ 650

Rearranging plant layout $ 1,600

Depreciation on plant & equipment $ 2,700

Overheads $ 5,850

Selling and Distribution Expenses:

Depreciation on delivery trucks $ 175

Delivery truck drivers' wages $ 275

Sales commissions $ 325

Customer hotline $ 180

Sales coupons for customers $ 770

Product Replacement $ 70

Selling and Distribution costs $1,795

b) ZigZag's value chain activities, according to Michael Porter, include inbound logistics, operations, outbound logistics, marketing and sales, and service. These activities create value that exceeds their cost for the purpose of generating a higher profit. In a similar way, ZigZag's production costs can be categorized into direct materials, direct labor, and manufacturing overhead.

3 0

3 years ago

What are four common types of changes and trends that can offer business opportunities?

Artyom0805 [142]

Some of the changes that may pose a great opportunity for business are: (1) change in the demands of the consumers (it may be in style, taste, etc) (2) rapid technology, (3) global banking opportunities, and lastly (4) government enhancing ties with the private owners of different business units.

8 0

3 years ago

Read 2 more answers

There are 66 employees in a certain firm. We know that 40 of these employees are male, 6 of these males are secretaries, and 1

GrogVix [38]

The probability is 13/66

6 0

3 years ago

Which crime is BEST represented by the following situation?

Shtirlitz [24]

Answer:

The answer is C. Money Laundering

Explanation:

Solution

From the question stated it can be described as a crime of money laundering.

Money laundering involves the use of illegally obtained money for legitimate purposes.

In this scenario, Jeff uses $15,000 from his illegal sales of drug paraphernalia for setting up a toy store. The origin of the money, which was obtained through illegal method was hidden.

Robbery and larceny are examples of theft that involves stealing items of value from another person. Embezzlement is also a kind of theft. It involves withholding of items with the intention of theft .

4 0

3 years ago