do all

do all

pick what you know. or do all

You sell 2 products. Product one has sales of $50,000 on volume of 1,000. Each unit needs 10 minutes to inspect. Costs are $24,000 variable and $12,000 fixed. Product 2 has sales of $150,000 on volume of 2,000. Each unit needs 12 minutes to inspect. Costs are $60.000 variable and $40,000 fixed. Assume that inspection time is scarce. Calculate the total shadow cost of inspection time in $ /hour. Answer: Notwithstanding your answer to the last question, assume the shadow cost is $120/hour. You are considering adding a third product. The third product would sell for $80 per unit. Variable cost to produce it would be $25 per unit and fixed costs would be $20,000. Inspection time for the product would be 15 minutes per unit. Calculate the breakeven volume for this new product, taking opportunity post into account. Answer: This situation is an example of which type of product interaction? Select one: O a Supply complement Notwithstanding your answer to the last question, assume the shadow cost is $120/hour. You are considering adding a third product. The third product would sell for $80 per unit. Variable cost to produce it would be $25 per unit and fixed costs would be $20,000. Inspection time for the product would be 15 minutes per unit. Calculate the breakeven volume for this new product, taking opportunity cost into account. Answer: This situation is an example of which type of product interaction? Select one: a. Supply complement b. Supply substitution c. Demand complement d. Demand substitution Next page Your company is choosing the price to charge for one of its products. The product provides a foot in the door for your business. All else equal, the fact that the product provides a foot in the door, means the optimal price should be? Choose... Demand substitutability What term do we use to refer to this type of product interaction? Supply complementarity Higher Demand complementarity Lower Equal Supply substitutability If you add together the industry volume and market share variances for a company, which variance do you get? (Be careful to avoid typos, spelling must match exactly.) Answer: In an activity based costing system, we organize overhead into cost objects based on allocation bases of the firm. We then select cost pools to match the cost drivers