Answer:
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Direct Material Cost Per Square Foot= 8+.1= 8.1 per square foot.
Answer:
a short-run decision because the number of aircraft is held constant while the labor input is changed.
Explanation:
In the short run, at least one variable or factor of production is fixed and cannot be changed. In the long run, all factors of production can be changed.
In this case, the number of aircraft is the fixed factor of production (capital) while labor is variable because more pilots can be hired. Regulation state that pilots must rest a certain amount of time in between flights, so if you want to increase the amount of flights you need to hire more pilots and cabin crews since regulations do not require planes to rest.
<em>This stands for</em><em> sustainability</em><em> when faced with a</em><em> keep or drop decision.</em>
A tactical business choice regarding whether to keep running a product, department, or specific company unit is called "keep or drop."
<h3>How do we decide whether to keep or drop a particular segment?</h3>
- The first step in selecting whether to preserve or eliminate a portion of the business is to construct a segmented income statement.
- Make a product line income statement, for instance, if a product is not lucrative.
- Make an income statement for any locations that are not producing a profit.
<h3>Which factor should be considered while selecting whether to keep or drop a product line?</h3>
- The entire costs, not only the per-unit prices, should be taken into consideration when considering whether or not to discontinue a product.
- Review the fixed expenses for production, sales, shipping and storage, customer service, and any other expenditures you can associate with the product.
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