Answer:
$13,335
Explanation:
Required production in units for April and May are 6,500 units and 6,200 units respectively.
Direct labor hours needed is 0.15 for both months.
Total direct labor hours needed for each month would be;
April
= 6,500 units × 0.15
= 975
May
=6,200 units × 0.15
= 930
Direct labor rate per hour for each months is $7
Total direct labor cost for April would be;
= $7 × 975
= $6,825
Total direct labor cost for May would be;
= $7 × 930
= $6,510
Therefore, total direct labor cost for both months April and May would be;
= $6,825 + $6,510
= $13,335
It provides the added necessities we need.
The decision to build the park or not would be based solely
on the cost – benefit relationship of this project. Since there is no other
factor considered in this problem, you only need to see if the benefit of
constructing the park would exceed its cost. In this problem, the cost to
construct the park is $20,000 while the marginal benefit would be $24,000
($8,000 x 3 families that can benefit from this project). Therefore, you can
say that the benefit has exceeded its cost. As a conclusion, the neighborhood
park should be built because it benefits the families living in that area more
than its cost.
Answer: $13125
Explanation:
The amount that the insurer will pay to settle this loss will be calculated thus:
= Insured claim × Insurance value / 80% of replacement value
= 15000 × 105,000 /80% × 150000.
= 15000 × 105,000 / 120000
= 13125
Therefore, the insurer will pay $13125