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eduard
3 years ago
11

A print shop runs a two-station binding line, in which the first station punches holes in the pages and the second station insta

lls the binders. On average, the punch machine can process 15,000 pages per hour, while the binder can process 10,000 pages per hour. The shop receives work that requires both punching and binding at a rate of 8,000 pages per hour. It also receives work requiring only punching at a rate of 5,000 pages per hour. Which station is the bottleneck of this line and why?
Business
1 answer:
ycow [4]3 years ago
8 0

Answer:

Punching machine

Explanation:

The computation is shown below:

Punching actual output = Both punching and the binding output + punching output

= 8,000 + 5,000

= 13,000 pages per hour

But the punching machine process to 15,000 pages per hour

Now the utilization rate of punching is

= 13,000 ÷ 15,000

= 0.867 pages per hour

Now for binding

The actual output is 8,000 pages per hour

Binder processing to 10,000 pages per hour

So, the utilization rate is

= 8,000 ÷ 10,000

= 0.8 pages per hour

As we can see that the utilization rate of punching is higher that results the bottleneck

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Answer:

prices to fall according to the classical economists and unemployment to increase according to Keynes.

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The classical economists believes that a decrease in aggregate demand for goods produced would being about fall in the prices of such goods. What this implies is that as more goods are produced, if such production is not backed by corresponding demand by consumers, the prices of such goods produced will eventually fall because supply is greater than demand.

For the Keynes, their argument is that a decrease in aggregate demand will cause unemployment to increase. This is because owners of businesses or employers would lay off their employees when goods produced exceeds the demand for such production by consumers. Here, owners of businesses pays their employees through sales of goods produced. So, when the goods produced are not purchased, then there will be excess availability of such goods; hence no sale or profit, from which salaries would be paid. The next step is to start laying off employees because employers cannot cover their running costs.

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Read 2 more answers
Victoria Enterprises expects earnings before interest and taxes ​(EBIT​) next year of $ 2.5 million. Its depreciation and capita
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Answer:

Value of Victoria Enterprises=  $21,498,285.71  

Explanation:

<em>Free cash flow represents the amount that is left to all the providers of capital after the payment of all all operating expenses, working capital and investment in fixed asset expenditures. </em>

It is computed as cash flow made from operation less capital expenditures

For Victoria Enterprises

The Free cash flow

= EBIT(1-T) + depreciation- increase in capital expenditure - increase in working capital

= 2.5 × (1-0.4) + 0.295 - 0.295 - 0.053

= 2,500,000 × (1-0.4) + 295,000 -295,000- 53,000

FCFF= $1,447,000

Value of a firm = FCFF (1+g)/(WACC-g)

g- growth rate - 4%, WACC- 11%, FCFF-1,447,000

Value of Victoria = 1,447,000 × (1+0.04)/(0.11- 0.04) =  21,498,285.71  

Value of Victoria=  $21,498,285.71  

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3 years ago
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