1. Sunny Co manufactures and sells suitcases. Currently sales are 2,000 units at a sale price of $147. Market research has established that for every $30 increase in price, sales will decrease by 400 units.

Calculate the demand function for Sunny.

2. Salmon Co has been researching the lead time for production. During this research he found that to produce one of his products, a 90% learning curve seems to apply. The time needed for the first unit is 7 hours.

Calculate the total time needed for units 5 to 8 only (in hours).

3. The Kleen product is manufactured through a production process where machine time is the bottleneck resource. One unit of Kleen requires 0.6 machine hours. The costs and the sale price of the Kleen Product are as follows:

ps
Materials	30
Labor (0.5 hours)	18
Other factory costs	2
Total	50
Sale price	64
Revenue	9

Given that performance accounting is followed, what is the performance accounting relationship for Product Kleen? 

Answer rating: 100% (QA)

To calculate the demand function for Sunny Co we can use the given information about the relationship between price and sales Let P Sale price of the ... View the full answer