Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

A company produces three products. Data concerning the selling prices and unit costs of the three products appear below:

A B C
Selling price $40 $50 $90
Variable Costs 30 40 60
Machine Time 4 min 5 min 10 min

The fixed costs incurred in the factory are $100,000 per year. Demand for the three products exceed the company's productive capacity. The machine time is the constraint, with only 3,000 minutes of machine time available this week.

1. Given the machine time constraint, which product would be emphasized?
2. Assuming there is still unfilled demand for the product that the company should emphasize in part 1. above, up to how much should the company be willing to pay for an additional hour of machine time?

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M929060

Have any Question? 


Related Questions in Basic Finance

How do reits differ from other mutual fundsare all reits

How do REITs differ from other mutual funds? Are all REITs pretty much the same? What are their differences?

You estimate that you will owe 40300 in student loans by

You estimate that you will owe $40,300 in student loans by the time you graduate. The interest rate is 4.25 percent. If you want to have this debt paid in full within ten years, how much must you pay each month? Atlas In ...

For each of the following observed changes in wage rates

For each of the following observed changes in wage rates and migration flows from the low-wage South to the high-wage North, describe one shift in conditions that, by itself, could have caused the set of changes: a. A ri ...

Investment projects should never be selected through purely

Investment projects should never be selected through purely mechanical processes. Managers should ask questions about the positive net present value (NPV). Good managers realize that the forecasts behind NPV calculations ...

If the rate of return on the sampp 500 index was 23 for

If the rate of return on the S&P 500 index was 23% for 2009, and the risk-free rate at the end of 2009 was 1%, calculate the equity risk premium for 2009. Recalculate the equity risk premium using 1981 data, when the ris ...

Repurchase agreements based on what you know about

Repurchase Agreements Based on what you know about repurchase agreements, would you expect them to have a lower or higher annualized yield than commercial paper? Why?

Question 1 - wing onn tong pte ltd is a private company

Question 1 - Wing Onn Tong Pte Ltd is a private company limited by shares incorporated in Singapore. It is in the business of selling traditional Chinese medicine (TCM). The company's object is "to sell traditional Chine ...

1 what are the transaction costs ie difference between bid

1. What are the transaction costs (i.e., difference between bid and asked prices) for 10,000,000 of 3-month, 6-months and 12-months T-Bills? Use exact days to maturity for each T-Bill. For each maturity, show all the det ...

Write a paper of more than 6 pages to incorporate the

Write a paper of more than 6 pages to incorporate the accompanying components Select a suggestion from the two inventive arrangements distinguished in Week 4 for tackling the issue. Clarify why the arrangement would help ...

Gill bates is the ceo of a large company his compensation

Gill Bates is the CEO of a large company. His compensation is based on current profitability. He's considering undertaking one of two investments available to the company: (a) one that yields profits of $500 million in e ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate