The sea wharf restaurant would like to determine the best way to allocate a monthly advertising budget of $1000 between newspape
1 answer:
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Answer:
cumulative learning factor for 85% and 400 units = 127.6
cumulative learning factor for 90% and 400 units = 189.3
total labor costs for producing the next 350 units = labor cost for producing 400 units - labor cost for producing 50 units
85% learning curve:
total labor costs for producing 400 units = $1,000 x 127.6 = $127,600
total labor costs for producing 50 units = $1,000 x 50 = $50,000
total labor costs for producing the next 350 units = $127,600 - $50,000 = $77,600
labor cost per unit = $77,600 / 350 = $221.71
90% learning curve:
total labor costs for producing 400 units = $1,000 x 189.3 = $189,300
total labor costs for producing 50 units = $1,000 x 50 = $50,000
total labor costs for producing the next 350 units = $189,300 - $50,000 = $139,300
labor cost per unit = $139,300 / 350 = $398
Answer:
The variable rate is 0.4 $/machine-hour.
The equation fot the utility bill is .
If Matt anticipates using 1200 machine hours in January, his utility bill will be $ 2660.
Explanation:
We have two points in the year that will let us calculate the fixed utility cost and the variable utility cost.
We will end up with a equation of a line, like this
Where C (M) is the total utility cost, v is the variable utility cost per machine hour, M are the machines running hours and F is the fixed utility cost.
We have two unknowns and two equations, so it can be solved.
First we can substract the two bills (the highest and the lowest) and equal that to the equation of the line we described
The variable rate is 0.4 $/machine-hour.
Then we can replace v in one of the equations
The fixed utility cost are 2180 $/month.
The equation fot the utility bill is .
If Matt anticipates using 1200 machine hours in January, his utility bill will be $ 2660.