Answer
The answer and procedures of the exercise are attached three images. The maximum profit is 262.500
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in three images.
Answer:
A) An increase in sales revenue received by the firm.
Explanation:
If worker productivity increases, the total output produced by the company will increase while the average cost per unit produced will decrease. This should result in a rightward shift of the supply curve that decreases the product's price at every level of quantity demanded. Since the demand is elastic, a small decrease in price will result in a larger increase in quantity demanded.
$553,950 is the total cost of the production.
Explanation:
In the table attached the various factors are explained
The total production, direct labour, total direct labour hours per unit and the total cost is calculated.
The total production of standard production for 3 months is calculated as (30,000*$15)=$450,000
the total production of deluxe product is calculated as (6,930*$15)=>$103,950
then the sum is found to get the total cost that is $553,950.