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natulia [17]
2 years ago
13

The Bata Aerobics Company manufactures two models of steppers used for aerobics exercises. To manufacture each luxury model requ

ires 20 lb of plastic and 9 min of labor. To manufacture each standard model requires 30 lb of plastic and 6 min of labor. The profit for each luxury model is $40, and the profit for each standard model is $15. If 12,600 lb of plastic and 60 hr of labor are available for the production of the steppers per day, how many steppers of each model should Bata produce in order to maximize its profits? Let x = number of Luxury Steppers and y = number of Standard Steppers.
Business
1 answer:
Angelina_Jolie [31]2 years ago
5 0

Answer:

to maximize profit it will produce:

400 units of luxury

none of standard.

Explanation:

luxury:

20 lb of pastic and 9 min of labor and 40 dollars profit

standard:

30lb plastic 6 of labor and $15

We calculate the contribution per constrain resourse:

<u>labor hours</u>

40 / 9 = 4.44

15 / 6 =  2.5

<u>materials</u>

40/20 = 2

15 / 30 = 0.5

As luxury provides better contribution in both categories we will maximize his production.

60 hours x 60 min per hours = 3,600 min

3,600 / 9 min = 400 units of luxury steppers

12,600/20 = 630 units of luxury

Once we use the labor hours we cannot keep producing, so we maximize the profit at 400 units of luxury at the given scenario.

As there is no amounft left for standard we don't produce any

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Answer:     Po = Do(1+g)/Ke-g

                  Po = $3.10(1-0.109)/0.13 - (-0.109)

                  Po = $3.10(0.891)/0.13+0.109

                  Po = $3.10(0.891)/0.239

                  Po = $11.56

Explanation: The current market price of the stock equals the current dividend paid multiplied by 1+g divided by the excess of cost of equity over growth rate. The growth rate is negative in this case, thus, the growth rate would be deducted from 1. Moreso, the growth rate will be added to cost of equity since it is negative. Thus, the amount that the investor will be willing to pay is $11.56.

7 0
2 years ago
An individual works downtown and pays $600 per month in rent for an apartment located 10 miles from her office. She has calculat
zmey [24]

Answer:

Option (B) is correct.

Explanation:

For a 20 workday month,

cost of gas and productivity = $4 per day

cost of commuting = cost of gas and productivity × 20 workday month

                               = $4 × 20

                               = $80.

The total rent he is paying currently is $600 per month that does not include the commuting cost.

Hence, the individual must willing to pay a total of:

= Total rent + Cost of commuting

= $600 + $80

= $680 for an apartment downtown.

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8 0
2 years ago
Consider the following projects, X and Y where the firm can only choose one. Project X costs $600 and has cash flows of $400 in
Maksim231197 [3]

Answer:

Neither any of the projects should be accepted

Explanation:

In this question, we have to use the net present value formula which is shown below:

Net present value = Present value of all years cash flows  - Initial investment

where,

The Present value of cash inflows is calculated by applying the discount rate which is presented below:

For this, we have to first compute the present value factor which is computed by a formula

= 1 ÷ (1 +rate) ∧ number of year

number of year = 0

number of year = 1

Number of year = 2

So,

Rate = 25%

For year 1 = 0.800 (1 ÷ 1.25) ∧ 1

For year 2 = 0.640 (1 ÷ 1.25) ∧ 2

Now, multiply this present value factor with yearly cash inflows

So

For Project A,

The present value of year 1 = $400 × 0.800 = $320

The present value of year 2 = $400 × 0.640 = $256

and the sum of all year cash inflow is $576

So, the Net present value would be equal to

= $576 - $600 = -24

And,

For Project B,

The present value of year 1 = $500 × 0.800 = $400

The present value of year 2 = $275 × 0.640 = $176

and the sum of all year cash inflow is $576

So, the Net present value would be equal to

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Since in both the projects, the NPV is negative.

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4 0
2 years ago
Record year-end adjusting entries (LO3-3) Below are transactions for Wolverine Company during 2021. On December 1, 2021, Wolveri
marysya [2.9K]

Answer: See explanation

Explanation:

1. Dr Deferred revenue 2,000

Cr. Rent revenue 2,000

2 Dr. Insurance expense 6,600

Cr. Prepaid insurance 6,600

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Cr Salaries payable 3,000

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Cr Interest payable 250

5 Dr Supplies expense 3,900

Cr Supplies. 3900

N. B:

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= $4,000 x 1/2

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Insurance expense for the current year was calculated as:

= $13,200 x 6/12

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Interest expense:

= $15,000 x 10% x 2/12

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