1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Damm [24]
3 years ago
5

Grover Corp. manufactures three products, and is currently facing a labor shortage. The selling price, costs, and labor requirem

ents of the three products are as follows: Product A Product B Product C Selling price $ 44.00 $ 18.00 $ 28.50 Variable cost per unit $ 28.00 $ 15.00 $ 27.00 Direct labor hours per unit 2.00 1.50 .50 In what order should Grover Corp. prioritize production of its products to maximize profit during the labor shortage
Business
2 answers:
Svetradugi [14.3K]3 years ago
5 0

Answer:

A, C, B

Explanation:

Calculation to determine In what order should Grover Corp. prioritize production of its products to maximize profit during the labor shortage

Product A Product B Product C

Selling price $ 44.00 $ 18.00 $ 28.50

Less Variable cost per unit

$ 28.00 $ 15.00 $ 27.00

=Contribution margin per unit

$16.00 $3.00 $1.50

÷Direct labor hours per unit 2.00 1.50 .50

=Contribution margin per labor hour

$8.00 $2.00 $3.00

PRODUCT A=$16.00÷2.00

PRODUCT A=$8.00

PRODUCT B=$3.00÷1.50

PRODUCT B=$2.00

PRODUCT C=$1.50÷.50

PRODUCT C=$3.00

RANKING:

PRODUCT A=$8.00

PRODUCT C=$3.00

PRODUCT B=$2.00

Therefore based on the above calculation the order that Grover Corp.should prioritize production of its products to maximize profit during the labor shortage will be from the highest Contribution margin per labor hour to the lowest which are A,C,B

viktelen [127]3 years ago
5 0

Answer: A, C, B.

Explanation:

To solve this question based on the information given goes thus:

The Contribution margin per labor hour for Product A will be:

= ($44 - $28) / 2.0

= $16/2.0

= $8

The Contribution margin per labor hour for Product B will be:

= ($18 - $15) / 1.50

= $2

The Contribution margin per labor hour for Product C will be:

= ($28.50 - $27) / 0.50

= $1.50/0.5

= $3

Therefore, the order that Grover Corp. should use to prioritize production of its products to maximize profit during the labor shortage will be:

A, C, B.

You might be interested in
The following data apply to Garber Industries, Inc. (GII): Value of operations $1,000 Short-term investments $100 Debt $300 Numb
kari74 [83]

Answer:

The correct option is $7,option C

Explanation:

The approach here is that we calculate the value of the firm after the cash dividend distribution ,which is simply the value of operations of $1000 since the short-term investments of $100 has been used in paying dividends.

Thereafter,the value of equity is the value of operations of $1000 minus the value of debt at $300,that is $700 ($1000-$300).

Finally intrinsic share price=value of equity/number of shares

number of shares is 100

intrinsic value per share=$700/100=$7 per share

5 0
3 years ago
When does it make sense for government to interfere with a pure market outcome?
guajiro [1.7K]
There are several situations when the government has to interfere with a pure market outcome. If the price of a product rises without any significant cause or if there is more supply than demand of a market, then the government can put a price ceiling or floor price of a product. This is purely to keep the economy of a country or state stable.
5 0
3 years ago
The collection and analysis of information aimed at understanding the behavior of consumers is called_______________________. *
Rom4ik [11]

Answer:

Market Research.

Explanation:

The collection and analysis of information aimed at understanding the behavior of consumers is called market research.

Market research can be defined as a management strategy that focuses on systematically acquiring informations about occasions, trends, events or patterns through surveys and analysis of information pertaining to the customers of a business firm or organisation. The informations acquired through market research is then used by the executive management and sales department in strategically planning the organisation's future and exploitation of available opportunities for the success of the organization.

5 0
3 years ago
During its fiscal year, a Pension Trust Fund buys 1,000 shares of stock, for which it pays $33,000. At year end, the stock has a
zysi [14]

Answer: d. the investment should be reported at a value of $28,000.

Explanation:

Investments should be recorded at their fair value in the financial statements. If a loss is made but the company is still holding on to the investment then the loss is unrealized which is the case here.

When there is an unrealized loss, it is to be debited to the Unrealized loss account and credited to the investment account to show that it is reducing. This will then leave the balance of the investment account at the fair value which in this case is $28,000.

7 0
3 years ago
Marshall Welding Company has two service departments (Cafeteria and Human Resources) and two production departments (Machining a
vovikov84 [41]

Answer: $88,889

Explanation:

Based on the information given in the question, the cost of Human Resources that would be allocated to Cafeteria will be calculated thus:

Number of employees (Human Resources to departments)

= 20 + 100 + 150

= 270 employees

The Human Resources cost would be allocated to Cafeteria will be:

= $1,200,000 / 270 x 20

= $88,889

5 0
3 years ago
Other questions:
  • The two basic sources of​ stockholders' equity are​ ________.
    10·1 answer
  • When the price of a good rises, consumers tend to purchase less of it and buy a relatively less expensive good. This behavior cr
    13·1 answer
  • How does a manufacturer set his or her total output to maximize profit?
    13·1 answer
  • What is different between profession and professional human resources?​
    6·1 answer
  • The Bronco Corporation exchanged land for equipment. The land had a book value of $126,000 and a fair value of $162,000. Bronco
    7·1 answer
  • A married couple are both employed by firms that cover them under the company pension plans, and each earns approximately $300,0
    11·1 answer
  • What percentage of your gross salary does the consumer financial?.
    11·1 answer
  • To ensure that mentions of a company in the news are received in a positive light, many firms think a prudent public relations s
    14·1 answer
  • What is a​ long-term purchase commitment to a supplier for items that are to be delivered against​ short-term releases to​ ship?
    10·1 answer
  • Long lines at gas stations were common in the united states in the 1970s as oil imports decreased. What economic condition is su
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!