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1 year ago

9

Jack Simpson, contract negotiator for Nebula Airframe Company, is currently involved in bidding on a follow-up government contra

ct. In gathering cost data from the first three units, which Nebula produced under a research and development contract, he found that the first unit took 2,500 labor hours, the second took 2,250 labor hours, and the third took 2,120 hours. Use Exhibit 6.5. In a contract for three more units, how many labor hours should Simpson plan for

1 answer:

Sergeeva-Olga [200]1 year ago

6 0

Answer: 5,882.5‬ hours

Explanation:

Cumulative Labor Hours to be planned for = Cumulative factor * Time of first unit

Cumulative Factor = Average learning rate for Number of units.

Learning rate from unit 1 to 2 = Labor hours required for 2nd unit / Labor Units required for 1st unit

= 2,250/2,500

= 0.9

Learning rate from unit 2 to 3 = Labor hours required for 3rd unit / Labor Units required for 2nd unit

= 2,120/2,250

= 0.94

Average learning rate = (0.9 + 0.94) / 2

= 0.9

= 90%

There are 6 units in total including the first units checked and the additional 3 units.

Cumulative factor for 6 units at 90% from the table is 5.101.

Cumulative labor hours = 5.101 * 2,500

= 12,752.5‬ hours

The time for the Addiotnal 3 units is;

= Cumulative time for all units - time for the first 3 units

= 12,752.5 - 2,500 - 2,250 - 2,120

= 5,882.5‬ hours

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Professor Smith and Professor Jones are going to produce a new introductory textbook. As true scientists, they have laid out the

stepan [7]

Answer:

(a) It will take Jones 25 hours to produce a finished book of 150 pages

(b) The marginal cost of the 150th page of the finished book is $4

The marginal cost of the 300th page of the finished book is $8

Explanation:

q= $S^{1/2}$ $J^{1/2}$ = $\sqrt{SJ}$

q = the number of pages in the finished book

S = the number of working hours spent by Smith

J = the number of hours spent working by Jones.

For first draft, smith works for 900 hours at $3 per working hour

q = $\sqrt{900J}$

q= $\sqrt{900}$ × $\sqrt{J}$

q = 30 × $\sqrt{J}$

$\frac{q}{30}$ = $\sqrt{J}$ , squaring both sides we have,

( $\frac{q}{30}$ )² = J

(a) Since Jones has to produce a book of 150 pages and Smith worked 900 hours on it,

q = 150, S = 900 , J = ?

J = ( $\frac{150}{30}$ )² = 5²

J = 25

Therefore, it would take 25 hours for Jones to produce a book of 150 pages.

(b) ( $\frac{q}{30}$ )² = J

Since Smith worked for 900 hours at $3 per working hour, his total cost of work is = 900 × $3 = $2,700.

Jones total cost of work at $12 per working hour = $12J

Total cost of work, C = $2,700 + $12J

C = $2,700 + $12( $\frac{q}{30}$ )²

Marginal cost, MC = $\frac{dC}{dq}$

= $\frac{d}{dq}$ [$2,700 + $12( $\frac{q}{30}$ )²]

= $\frac{4q}{150}$

if q = 150, MC = $\frac{4*150}{150}$

= $4

if q = 300, MC = $\frac{4*300}{150}$ = $8

6 0

2 years ago

You would like to start a cellular telephone equipment service business. You are considering organizing the business as a sole p

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Answer:

A sole proprietorship is a form of business owned and managed by one person.

Explanation:

Advantages:

1. It involves small capital to set up the business.

2. There is a close relationship between owner and customers which improves personalised product/service delivery.

3. There is privacy in conducting business affairs.

4. All profits accrue belongs to the business owner.

Disadvantages:

1. The sole proprietor bears the risks alone.

2. There is limitation in expansion

3. Unlimited liability in cases of business failure, his assets maybe sold to pay of debts.

The advantages of owing a sole proprietorship are:

1. Ability to manage the business.

2. The low startup cost.

3 0

2 years ago

Read 2 more answers

In the Vasquez Corporation, any overapplied or underapplied manufacturing overhead is closed out to Cost of Goods Sold. Last yea

wolverine [178]

Answer:

Cost of Goods Sold, after adjustment for overapplied manufacturing overhead, for the year must have been $69,000.

Explanation:

From the question, we have:

Applied manufacturing overhead cost = $29,000

Actual manufacturing overhead cost = $27,000

Cost of Goods Manufactured for the year = $71,000

Overapplied manufacturing overhead = Applied manufacturing overhead cost - Actual manufacturing overhead cost = $29,000 - $27,000 = $2,000

Therefore, we have:

Cost of Goods Sold = Cost of Goods Manufactured for the year - Overapplied manufacturing overhead = $71,000 - $2,000 = $69,000

Therefore, Cost of Goods Sold, after adjustment for overapplied manufacturing overhead, for the year must have been $69,000.

8 0

1 year ago

Marco traveled across three states to shop at Tiffany's to buy his girlfriend, Jana, a present. This is the only Tiffany's store

Llana [10]

Answer:

Exclusive.

Explanation:

In this scenario, Marco traveled across three states to shop at Tiffany's to buy his girlfriend, Jana, a present. This is the only Tiffany's store in the entire region. The degree of channel coverage for Tiffany's is exclusive.

In marketing, there are basically three (3) types of market channel coverage used by businesses;

1. Intensive market coverage: this involves a company extending its products to as many sales outlets as possible. Therefore, it's a saturation coverage of the market. Some examples are softdrinks, beer, or cigarettes company.

2. Selective market coverage: it involves a company using a limited number of sales outlets to sell its products in a region. Thus, it lie between an intensive distribution and exclusive market coverage.

3. Exclusive market coverage: this involves a company extending its products to only one sales outlets. Thus, it is the exact opposite of an intensive market coverage and a complex form of selective market coverage. It gives companies prestige and improves brand quality perceptions.

<em>Hence, the degree of channel coverage for Tiffany store is exclusive market coverage. </em>

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2 years ago

You’re prepared to make monthly payments of $175, beginning at the end of this month, into an account that pays 7 percent intere

lara31 [8.8K]

Answer:

<u>86 payments approximately</u>

<em>Explanation</em>:

<u>First</u>;

Find the monthly average interest rate,

=7%/12

=0.0058333333

<u>Second</u>;

Add the monthly average interest rate to the monthly payment

= $175 + 0.0058333333

= $175.00583333 (average total monthly balance)

<u>Third</u>;

Divide final account balance by the average total monthly balance

= 15,000 / 175.00583333

=85.71 payments.

3 0

2 years ago