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2 years ago

Present three examples that illustrate how all decisions involve trade-offs

2 answers:

7 0

It is probably safe to say that most if not all decisions involve trade-offs. For example a person may be offered a job that pays well but requires 7 days per week for a month and while this is good for a younger person with no other commitments it may not work for an older person with his own family commitments and other projects. Another decision could be that for support, a husband decides to not take on major time consuming projects while his wife is doing intensive studying to become certified in a field of her choosing so that he can support her. Another example is that when one cannot drive one's son with a disability to a beach to swim because it is too far and uses too much car gas, the money saved on gas some of it could be spent on his groceries.

kati45 [8]2 years ago

4 0

All decisions involve trade-offs. Trade offs are the alternatives one gives up whenever one chooses one course of action leaving out out all other alternative courses of action.

Trade-offs are practically found in all economic decisions. For instance, when one chooses to take a special cup of cappuccino for $330, this excludes spending this amount of cash on tea or fruit juice. When you choose to buy an expensive piece of art, you will have to spend more money towards maintenance and security of the painting. If you decide to work in a far-off city due to better pay there, you spend less time with family and friends in your hometown.

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Maryland Incorporated produces toys. Total manufacturing costs are $360,000 when 50,000 toys are produced. Of this amount, to

Aleonysh [2.5K]

Answer:

$458,000

Explanation:

The computation of the total production cost in case of 85,000 toys are produced

The fixed cost is

= Total manufacturing cost - total variable cost

= $360,000 - $140,000

= $220,000

And, the variable cost per unit is

= $140,000 ÷ 50,000 toys

= $2.8

So for 85,000 toys, the total production cost is

= Fixed cost + Variable cost × variable cost per unit

= $220,000 + 85,000 toys × $2.8

= $220,000 + $238,000

= $458,000

5 0

2 years ago

On may 1, the cash account balance was $72,600. during may, cash receipts totaled $345,600 and the may 31 balance was $95,230. d

Sphinxa [80]

<span>$322,970 The expression for the cash balance at the end of the month is B = I + R - P where B = Balance at the end of the month. I = Initial balance at the beginning of the month. R = Receipts received during the month. P = Payments made during the month. So let's substitute the known values we have and solve for P B = I + R - P 95230 = 72600 + 345600 - P 95230 = 418200 - P 95230 + P = 418200 P = 322970 So the cash payments made were $322,970</span>

4 0

2 years ago

Maxwell Manufacturing makes two models of felt tip marking pens. Requirements for each lot of pens are given below. Fliptop Mode

Leto [7]

Answer:

Step 1

Let us assume that x1 amount of Fliptop and x2 amount of Tiptop models are produced, then the objective function is to maximize profitability with the constraints on the production limited by the available plastic, ink and time. Hence the LP model is given by the objective function and the three constraints as shown below:

Objective function ($) (OF): maximize z = 1000x1 + 1000x2

Plastic material constraint ( Eqn. 1): 3x1 + 4x2 <= 36

Ink material constraint (Eqn. 2): 5x1 + 4x2 <= 40

Time constraint (Eqn. 3): 5x1 + 2x2 <= 30

Non negativity constraints: x1, x2 >= 0

Step 2

Since it is a 2 variable problem it can be solved graphically or using a model solver such as MS-Excel ®. The feasible region is defined by the corner points (boundary points) A, B, C, D, E and the boundary lines of the constraint equations 1,2,3 and the objective function OF as shown in the diagram.

The coordinates and the OF values at the corner points are given below:

A (0,0); OF = 0 (intersection of non-negativity constraints)

B (6,0); OF = 6000 (intersection of x2=0 and eqn 3)

C (4,5); OF = 9000 (intersection of eqn 2 and 3)

D (2, 7.5); OF = 9500 (intersection of eqn 1 & 2)

E (0,9); OF= 9000 (intersection of x1=0 and eqn 1)

Step 3

Hence the optimal solution is given by the point D where the OF equation touches the feasible region with the maximum value. There is an excess of 5 units of molding time available.

6 0

2 years ago

Lilly Ann went to the pet store with her mother to buy a gerbil. After choosing her gerbil, she and her mother went to look at c

AnnyKZ [126]

Answer:

The correct answer is letter "E": modular design.

Explanation:

Modular design is a type of approach by which a design is divided into independent components called modules that can be arranged among them creating different systems. The greatest advantage of modular design relies on customization since the modules can be easily upgraded or changed.

5 0

2 years ago

The following inventory was available for sale during the year for Tower Tools: Beginning inventory 10 units at $160 First purch

Veronika [31]

Answer:

The dollar amount of inventory at the end of the year according to the First-in, First-out method of inventory valuation is:

$6,600.

Explanation:

a) Data and Calculations:

Beginning inventory 10 units at $160 $1,600

First purchase 15 units at $220 3,300

Second purchase 30 units at $280 8,400

Third purchase 20 units at $260 5,200

Total 75 units $18,500

Ending inventory 25 units

Cost of goods sold 50 units

Ending inventory under First-in, First-out method:

20 units at $260 = $5,200

5 units at $280 = 1,400

25 units = $6,600

Cost of goods sold = Cost of goods available for sale minus ending inventory = $18,500 - 6,600 = $11,900

3 0

1 year ago