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Makovka662 [10]
2 years ago
15

Aggies Candle Factory has recently been awarded a new contract with a large retailor in Doylestown. Demand for the candles is 25

,0000 which a larger order than the company has ever handled before. They have called a business strategy meeting to ensure success of this project.; the Operations Manager has presented two different manufacturing options for consideration by the board:
Option A is highly automated with fixed costs of $25,000 and variable costs of $.1/candle.
Option B uses hand labor with fixed costs of $10,000 and variable costs of $.5/candle.
Which option should the board select and why?
Business
1 answer:
Sergio039 [100]2 years ago
6 0

Answer: Option A

Explanation:

From the question, the demand given is 250,000

For Option A,

Fixed cost = $25000

Variable cost = $0.1 per candle

Total cost = Fixed cost + Variable cost

Total cost = $25000 + ($0.1 × 250,000)

= $25,000 + $25,000

= $50,000

For Option B,

Fixed cost = $10000,

Variable cost = $0.5 per candle

Total cost = Fixed cost + Variable cost

Total cost = $10000 + ($0.5 × 250,000)

= $10,000 + $125,000

= $135,000

Therefore, the board should select option A as the total cost is cheaper than option B.

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Answer:

Explanation:

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Step 1: we calculate the sample proportion; p= 60/240= 0.25.

Step 2: calculate the standard error for the sample, which is the square root of sample proportion,p = p(1-p)/n, n=100

0.25(1-0.25)/100

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Step 3: calculate the test statistics; assuming the hypothesis test percentage is 25%

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3 years ago
An individual buys stock at $40 per share. Many years later, the individual dies when the market value is $60. The estate distri
marissa [1.9K]

Answer:

$60

Explanation:

An individual buys stock at $40 per share. Many years later, the individual dies when the market value is $60. The estate distributes the shares to a beneficiary when the stock is worth $70. Therefore the cost basis to the beneficiary is

The cost basis by definition is usually equal to the fair market value of the property or asset at the time of the decedent's death or when the actual transfer of assets was made.

However for the purpose to be served to reduce the tax due on the inheritance, we have chosen to opt for the fair market value of the property or asset at the time of the decedent's death which is $60

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When a non-price factor changes--such as technology, expectations, prices of related goods, prices of inputs, or the number of s
ludmilkaskok [199]

Answer:

The answers are:

  1. D) Supply and the entire curve shifts.
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Explanation:

1. When non price factors (that affect the supply of a product) change, then the whole supply curve shifts and the quantity supplied will vary.

For example, new machinery that produces goods in a more efficient way, will shift the entire supply curve to the right. Suppliers will be able to produce more goods at the same costs.

2. A change in the amount of goods produced due to a change in price, is a change in the quantity supplied of that product. Suppliers will produce more goods at higher prices. But those changes in the quantity supplied happen follow the supply curve.

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Answer:

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Explanation:

A normative economic statement is always a suggestion for the economy, whereas a descriptive economic statement is a statement providing information, as it states the facts and do not provide any suggestion.

Here, in given instance the statement,

Government needs to improve or form the Social Security Program, so that the program is sustainable, is a suggestion and not a fact.

Thus, it is a normative economic statement.

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