Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Managerial Economics Expert

Weston Industrial Manufacturing Products ("WIMP") has the capability to produce a variety of industrial products, including a number of types of widgets. In the past, WIMP has manufactured 2 different types of widget (Type A and Type B). Each of these is sold in a market that approximates a perfectly competitive market. Production is limited to standard shifts operating Monday through Friday due to a contract with the relevant labor union.

The average labor rate is $10 per hour and the company currently employs 10 laborers who work a single 8-hour shift each day. The company employs several salaried marketing and administrative employees. The following table provides price and cost data collected from the accounting department:

WIMP: Per-Unit Price and Cost Data by Widget Type

864_data by widget type.jpg

WIMP has recently developed a new widget, the "Gizmo Widget." The Gizmo Widget is designed to serve a niche demand segment in the manufacturing industry. Labor costs are relatively low but this is partially offset by higher materials costs.

The company recently upgraded machinery to enable the Gizmo Widget to be produced and this is reflected in higher depreciation charges. WIMP's marketing staff produced the following sales projections regarding the Gizmo Widget:

2031_gizmo widget.jpg

In the short run, WIMP cannot add to its labor force of ten employees and consequently there are only 80 labor hours available per day to allocate toward widgets.

problem 1: Which costs in the table of accounting information are relevant for making short-run economic decisions regarding the production mix of widgets? describe and show.

problem 2: Ignore the Gizmo Widget for the moment. How should WIMP be allocating production between the Type A and Type B widgets?

Be sure to briefly describe your approach/reasoning.

problem 3: What is the profit maximizing number of Gizmo Widgets that should be introduced? Be sure to account for the fact that Gizmo Widgets displace other types of widgets. Again, be sure you provide a brief explanation of your approach/reasoning.

Managerial Economics, Economics

  • Category:- Managerial Economics
  • Reference No.:- M96804

Have any Question? 


Related Questions in Managerial Economics

Managerial economics assignmentprice quotes and pricing

Managerial Economics Assignment Price Quotes and Pricing Decisions Applied Problems Please complete the following two applied problems: Problem 1: Jessica Alba, a famous actress, starts the baby and family products busin ...

Economics for managers assessment examquestion 1 overseas

ECONOMICS FOR MANAGERS ASSESSMENT: EXAM Question 1 Overseas investments by U.S. citizens are recorded as credit items in the capital account of the U.S. balance of payments. True False Question 2 Under a fixed or control ...

Economics for managers assessment examquestion 1 us workers

ECONOMICS FOR MANAGERS ASSESSMENT: EXAM Question 1 U.S. workers have neither substantial geographic nor occupational mobility both substantial geographic and occupational mobility substantial geographic mobility but not ...

Managerial economics report due 30-36hrs from nowthe report

Managerial Economics Report; Due 30-36hrs from now The report has to be 1000 words, APA format with references I need a report in Managerial Economics (In this course we have tried to look at Economics from a Managerial ...

Economics for managers assessment examquestion 1 if planned

ECONOMICS FOR MANAGERS ASSESSMENT: EXAM Question 1 If planned investment decreases, the multiplier will decrease the equilibrium income. True False Question 2 The change in the level of planned spending that results from ...

Section aall questions carry equal marksq1 how does

Section A All questions carry equal marks. Q.1 How does economic theory contribute to managerial decisions? Q.2 Explain the law of demand. Briefly discuss the exception to the law of demand. Q.3 Explain the various compo ...

Economics for managers assessment examquestion 1 a firm is

ECONOMICS FOR MANAGERS ASSESSMENT: EXAM Question 1 A firm is making a profit under conditions of monopolistic competition if, at the equilibrium output, AR is above MR MR is above AR AR is above AVC AR is above ATC Quest ...

Economic assignmentsuppose that there are two products

Economic Assignment Suppose that there are two products: clothing and soda. Both Brazil and the United States produce each product. Brazil can produce 100,000 units of clothing per year and 50,000 cans of soda. The Unite ...

Questionidentify two health care product advertisements

Question: Identify two health care product advertisements from radio, television, newspaper, magazines, or social media. Possible products could include blood pressure cuffs, blood glucose meters, and food diary apps. Th ...

Section aall questions carry equal marksq1 how does

Section A All questions carry equal marks. Q.1 How does economic theory contribute to managerial decisions? Q.2 Explain the law of demand. Briefly discuss the exception to the law of demand. Q.3 Explain the various compo ...

  • 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

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen