Answer:
a. What are the maximum and minimum cycle times?
The maximum cycle time is 60 minutes and the minimum cycle time is 2.4 minutes.
b. How much daily output will be achieved by each of those cycle times?
Daily output = CT = A/R
For max CT = 480/60 = 8 units per day
For min CT = 480/2.4 = 200 units per day.
2. In problem 1, suppose the line is balanced using 14 workstations and a finished product can be produced every 4.5 minutes.
a. What is the production rate in units per day?
CT = A/R or 4.5 = 480/R or R = 106.66 units/day
b. What is the assembly-line efficiency?
Efficiency = 60/[4.5(14)] =0.95 or 95.2% percent efficiency.
Answer:
Acme's current balance of accounts payable is $6000
Explanation:
The closing balance of accounts payable can be calculated using the opening balance and adjusting the changes during the period to the opening balance.
The closing balance can thus be calculated as:
Closing balance = Opening balance + Credit purchases - Payment to Accounts payable
Closing balance = 3000 + 4000 - 1000
Closing balance = $6000
Answer: Please refer to Explanation.
Explanation:
Monopoly.
The 2 reasons why the monopoly’s marginal revenue will always be less than its price are;
a) Even though Monopolies have very large influence on the prices of goods and services they offer, for a Monopoly to sell more goods, they generally have to lower their prices. This will lead to a situation where Marginal Revenue, which is the additional revenue made per additional unit sold will be less than Price because additional revenue for a new unit will be less than the last one because prices are dropped .
b) A Monopoly's demand schedule is downward sloping. This means that demand rises as prices drop. As prices drop therefore, more goods will be sold but the marginal revenue will be less because prices had to be dropped to get an additional unit to be sold. That unit therefore will bring in less revenue than the last unit.
Perfectly Competitive Market
In such a market, the seller is a Price Taker. This means that sellers in this market do not sell at a price that they want but rather at a price the market has established to be the Equilibrium. This is because of the high competition in the market. Since they are all selling at the same price, this means that every additional revenue they get is the same as the price the market charges. This means that Price equals Marginal Revenue in this market.
Answer:
D. The gold coins are a commodity money because even though they were issued by a foreign government, the gold has intrinsic value
Explanation:
Commodity money is money that has intrinsic value. Its value can be derived from the material from which it is made. E.g. gold, salt, silver
Fiat money is money that has no intrinsic value but the government establishes it as money.
I hope my answer helps you
Answer:
A particular product line is most likely to be dropped when:
- its total fixed costs are more than its contribution margin
- its variable costs are more than its fixed costs
- its unavoidable fixed costs are more than its contribution margin.
Explanation:
The aim of every producer is to maximize profit and to make this possible, the cost of producing a particular product should fall below the contribution margin.
In the case that the gross profit is always negative due to high cost of production, further production should be discouraged.
The decision to drop a particular product line is usually reached when:
- Its total fixed costs are more than its contribution margin: Here, the company will run at a loss. It is sustainable to continue production..
- Its variable costs are more than its fixed costs: This is also an unfavorable situation that does not sustain mass production. Therefore, further production should discontinue.
- its unavoidable fixed costs are more than its contribution margin: At this rate, profit cannot be maximized. It is a lose-lose situation for the company.
