Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN: 9781305506381
Author: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher: Cengage Learning
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Chapter 7, Problem 1.4CE
To determine
Labor and capital estimated parameters and it’s interpretation.
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What is the formulae used to find unit cost?
Calculate the total cost based on:
Cost fixed = $90
Cost variable = $45
SOLVE STEP BY STEP IN DIGITAL FORMAT
The company Cielito S.A. It manufactures clothing for older adults and has a large presence in Mexico, due to the comfort and good taste of its garments. It has 60 seamstresses who work 8 hours a day; Indirect manufacturing expenses are $9,500.00 MXN. Every day Cielito S.A. produces 1,500 garments. The cost per hour of labor is $55.00 MXN. With this data, you must calculate:
a. Labor or labor productivity.
b. The productivity of manufacturing indirect expenses.
c. The total productivity of Cielito S.A.
Chapter 7 Solutions
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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- A recent engineering was given the job of determining the best production rate for a new type of casting in a foundry. After experimenting with many combinations of hourly production rates and total production cost per hour, he summarized his findings in table below (column 2). The engineering then talked to the firm’s marketing specialist, who provided estimates of selling price per casting as a function of production output (see table 1 column 3). There are 8,760 hours in a year. What production rate would you recommend to maximize total profits per year? a) 100 ; b) 200 ; c) 300 ; d) 400 ; e) 500 Show handwritten solutions.arrow_forwardmajor league baseball plans to sell special commemorative jerseys for the world series. the suppliers says that costs will be C(x)= 10x2-680x-20,000 dollras dor making x jerseys. MLB plans to sell them for 120 dollars each. how many jerseys must be sold for MLB to make a profit?arrow_forwardWhat is the optimal productivity rate for a two-person carpentry crew that has a measured productivity of:y = -6.18x2 + 4.326x + 4.516 Answer is 14 hours but how do i get that.arrow_forward
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- *0.65 0.35 where x is the amount of labor and y is the amount of capital. The productivity of a country is given by f(x,y) = 100x (a) Compute the marginal productivities of labor and capital when x = 300 and y = 500. (b) Use part (a) to determine the approximate effect on productivity of increasing capital from 500 to 502 units, while keeping labor fixed at 300 units. (c) What would be the approximate effect of decreasing labor from 300 to 298.5 units while keeping capital fixed at 500 units? (a) The marginal productivity of labor is (Do not round until the final answer. Then round to two decimal places as needed.) The marginal productivity of capital is (Do not round until the final answer. Then round to two decimal places as needed.) (b) When capital is increased from 500 to 502 units, the approximate change in productivity is (Do not round until the final answer. Then round to two decimal places as needed.) (c) When labor is decreased from 300 to 298.5 units, the approximate change…arrow_forwardA recent engineering was given the job of determining the best production rate for a new type of casting in a foundry. After experimenting with many combinations of hourly production rates and total production cost per hour, he summarized his findings in (table 1). The engineering then talked to the firm's marketing specialist, who provided estimates of selling price per casting as a function of production output (see table 2). There are 8,760 hours in a year. What production rate would you recommend to maximize total profits per year? Table 1 Total cost per hr Casting production per hr $1,000 100 $2,600 200 $3,200 300 $3,900 400 $4,700 500 Table 2 Selling price / casting Casting production per hr $20.00 100 $17.00 200 $16.00 300 $15.00 400 $14.50 500 The answer is Blank 1 per hourarrow_forwardA recent engineering was given the job of determining the best production rate for a new type of casting in a foundry. After experimenting with many combinations of hourly production rates and total production cost per hour, he summarized his findings in (table 1). The engineering then talked to the firm’s marketing specialist, who provided estimates of selling price per casting as a function of production output (see table 2). There are 8,760 hours in a year. What production rate would you recommend to maximize total profits per year? Table 1 Total cost per hr Casting production per hr $1,000 100 $2,600 200 $3,200 300 $3,900 400 $4,700 500 Table 2 Selling price / casting Casting production per hr $20.00 100 $17.00 200 $16.00…arrow_forward
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