company has two departments, Y and Z that incur wage expenses. An analysis of the total wage expense of $34,000 indicates that Dept. Y had a direct wage expense of $5,000 and Dept. Z had a direct wage expense of $8,000. The remaining expenses are indirect and analysis indicates they should be allocated evenly between the two departments. Departmental wage expenses for Dept. Y and Dept. Z, respectively, are
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A company has two departments, Y and Z that incur wage expenses. An analysis of the total wage expense of $34,000 indicates that Dept. Y had a direct wage expense of $5,000 and Dept. Z had a direct wage expense of $8,000. The remaining expenses are indirect and analysis indicates they should be allocated evenly between the two departments. Departmental wage expenses for Dept. Y and Dept. Z, respectively, are:
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- The elasticity of factor demand will be greater the: Select one: a) fewer the amount of capital used in the production process b) smaller the portion of the product's total costs accounted for by the factor c) less the elasticity of demand for the product it is producing d) larger the number of substitute factors which are available e) more rapid the rate of decline in its marginal productA company is currently using its two inputs L and K, where MPL - 3.2K04L 0.2 and MPK - 1.6K -0.610.8 The firm pays a wage (W) of $80 per L and pays a rental rate of capital (R) of $40 per K. unit(s) of K for every The optimal (cost minimizing) combination of labor and capital is to employ unit of L (K should be times L). Answer as a whole number.ophia has decided to start her own business. In doing so she refused an offer to work at the Central Bank which would pay a salary of $200,000 annually. Last year she earned a total revenue of $150,000. Rent and utilities last year were $60,000. Her assistantʹs salary is $50,000 annually. Her total explicit and implicit costs are
- Barryton is a mid-sized city in a southwestern state that is experiencing significant changes to its economy. In 2010, the city had a population of 125 thousand people and a median household income of $45000. The fraction of households with at least one unemployed adult was 0.28, and the housing cost index was measured at $1425. At the same time (beginning approximately 2 years prior), other cities were offering more lucrative commercial rental opportunities, and this led to some large companies relocating their central offices away from Barryton to these favorable cities. The reduced commercial activities had a quick and direct impact on the city’s economy as overall growth became stagnant. This change in the economic environment motivated the local government to begin implementing policies geared towards promoting economic growth in the city. Over the seven-year period from 2010 to 2017, the policies implemented have led to an expansion of the textile industry as well as an increase…y= f(x1,x2)=x1ax2b If a=b=0.5 , the price of factor 1 is 12, and the price of factor 2 is 3, find the cost minimizing input combinations and the total cost of producing 40 units of output. Redo part (1), this time by first deriving the firm’s conditional factor demand functions and the cost function.Suppose your current job pays you $225,000 a year. However, you are considering starting your own company. Based upon your research, you estimate your first-year total revenue to be $4,700,000. There are however several costs of running the company during this first year, such as the cost of materials which will equal $1,300,000, employees who will receive in total $1,500,000, utilities which will cost $750,000, and rent that will be paid to the landlord that equals $1,000,000. Based on this information, solve for both your accounting profit and economic profit during this first year. Also, based upon these profit values, state whether you are better off starting this company or staying in your current job.
- Lucky Company's direct labor information for the month of February is as follows: Actual direct labor hours worked (AQ) 61,500 Standard direct labor hours allowed (SQ) 63,000 Total payroll for direct labor $ 774,900 Direct labor efficiency variance $ 18,000 The actual direct labor rate per hour (AP) for February, rounded to two decimal places, was:The chief economist for Argus Corporation, a large appliance manufacturer, estimated the firm’s short-run cost function for vacuum cleaners using an average variable cost function of the form AVC = a + bQ + cQ2 where AVC = dollars per vacuum cleaner and Q = number of vacuum cleaners produced each month. Total fixed cost each month is $180,000. The following results were obtained: DEPENDENT VARIABLE: AVC R-SQUARE F-RATIO P-VALUE ON F OBSERVATIONS: 19 0.7360 39.428 0.0001 VARIABLE PARAMETER ESTIMATE STANDARD ERROR T-RATIO P-VALUE INTERCEPT 191.93 54.65 3.512 0.0029 Q -0.0305 0.00789 23.866 0.0014 Q2 0.0000024 0.00000098 2.449 0.0262 d) If Argus Corporation produces 10,000 vacuum cleaners monthly, what is the estimated average variable cost?A large architectural firm has just landed a contract to build a hospital. Nine architects currently work 40 hours per week in this firm, and all are available to work full-time on this project. The managers estimate that they need 400 architect-hours per week for 20 weeks to complete this project. Architects earn $500 per 40-hour week. Suppose that there is a fixed cost of hiring an architect of $2,000. (This cost reflects the advertising costs, interviewing costs, and so forth.) The firm's current architects are willing to work overtime to complete this project if they receive 1.5 times their usual wage rate for any hours in excess of 40 hours per week. In this situation, the total overtime wages the managers would pay for the project will be $ 18,000 Alternatively, the firm can handle this project by hiring new workers (for 20 weeks only) and having all architects work 40 hours per week. The number of new architects the firm would need to hire is 1. Comparing the costs suggests that…
- A large architectural firm has just landed a contract to build a hospital. Seven architects currently work 40 hours per week in this firm, and all are available to work full-time on this project. The managers estimate that they need 400 architect-hours per week for 20 weeks to complete this project. Architects earn $500 per 40-hour week. Suppose that there is a fixed cost of hiring an architect of $2,000. (This cost reflects the advertising costs, interviewing costs, and so forth.) Part 2 The firm's current architects are willing to work overtime to complete this project if they receive 1.5 times their usual wage rate for any hours in excess of 40 hours per week. In this situation, the total overtime wages the managers would pay for the project will be $enter your response here.The company Cojines Cromáticos, S.A. uses a standard cost system. The standard information for a finished cushion is 3.5 labor hours with a standard rate of $ 5.5 per hour. The total wages paid in the month was $ 225,000 corresponding to a total of 45,000 hours worked. In the month of November, 12,000 cushions were produced. What is the variation in the labor rate for the month of November?The marginal profit for a certain company is MP₁(x) = -x² + 18x-45. The company expects the daily production level to rise from x = 3 to x = 5 units. The management is considering a plan that would have the effect of changing the marginal profit to MP₂(x)= -x² +14x-33. Should the company adopt the plan? Determine the area between the graphs of the two marginal profit functions from x = 3 to x = 5. Interpret this area in economic terms. C Should the company adopt the plan that would make the marginal profit be MP₂? O A. Yes, because the company will make a larger profit under the new plan. B. No, because the company's profit will be smaller under the new plan. O C. It is impossible to tell using the given information. The area between the graphs of the two marginal profit functions from x = 3 to x = 5 is sq. units.