Answer:
setup cost = $1.75
setup time = 2.625 min
Explanation:
given data
firm operates = 250 days per year
Annual demand = 22,000
Daily demand = 88
Daily production = 250
Desired lot size = 63 (2 hours of production)
Holding cost = $40 per unit per year
to find out
setup cost and setup time
solution
we find first setup cost that is express as
setup cost = 
......................1
here Q is Desired lot size and H is Holding cost and d is Daily demand and D is Annual demand and p is Daily production
put here value
setup cost = 
setup cost = 
setup cost = $1.75
and
setup time is
setup time = 
....................2
setup time = 
setup time = 2.625 min
Answer:
Michael does not experience inflation because he only buys Tennis rackets
Explanation:
Inflation is defined as increases in price per unit price.
It is the prolonged increase in the price of goods and services caused by devaluation of currency , demand -pull or cost - push. While a certain degree of inflation can be beneficial to a thriving economy , it can become a threat if it becomes larger.
One of the direct impact of inflation is rise in price of goods and services.
As the price of rackets was not affected by the inflation , that means that Michael was not affected by the inflation.
Answer: Price differentiation
Explanation:
The startegy used by the theater company to shift demand for theater tickets is differentiating on the price. Price differentiation is a pricing strategy whereby difeent sets of customers are charged different prices for the same good or services.
The theater company gives 30% discount for people who buy the tickets early compared to people who buy the ticket on the day of the performance. This so differentiation on price.
Answer:
<h2>Because firms in a perfectly competitive market does not have any price making ability or market power,they are not able to engage in any price discrimination.Hence,the correct answer is the last option or True,because perfectly competitive firms have no market power.</h2>
Explanation:
In Microeconomics,perfectly competitive markets are characterized by many buyers and sellers in which the sellers and firms usually sell homogeneous or identical products.Now,as there are many firms in the market and no barriers to entry for new firms into the market,the market competition or rivalry is high and hence,no single firm has the ability to determine and manipulate the market price according to their own economic advantage because if any firm tries to do so,it will loose significant market share as most customers would move to other sellers/firms charging lower price or regular market price.Therefore,the market price is fixed in the perfectly competitive market as the firms do not have price making or market power.Consequently,they are not able to charge different prices to different customers according to their maximum willingness to pay or differences in price preferences.
Answer:
It is cheaper to make the part in house.
Explanation:
Giving the following information:
Harrison Enterprises currently produces 8,000 units of part B13.
Current unit costs for part B13 are as follows:
Direct materials $12
Direct labor 9
Factory rent 7
Administrative costs 10
General factory overhead (allocated) 7
Total $45
If Harrison decides to buy part B13, 50% of the administrative costs would be avoided.
To calculate whether it is better to make the par in-house or buy, we need to determine which costs are unavoidable.
Unavoidable costs:
Factory rent= 7
Administrative costs= 5
General factory overhead= 7
Total= 17
Now, we can calculate the unitary cost of making the product in-house:
Unitary cost= direct material + direct labor + avoidable administrative costs
Unitary cost= 7 + 5 + 5= $17
It is cheaper to make the part in house.
