given by the following relationship: Q = 400 – 0.5P where P is price and Q is quantity demanded. Total costs of production (including a “normal” return on owners’ investment) per month are: C = 20‚000 + 50Q + 3Q2 a. Express total profits (() in terms of Q. b. At what level of output are total profits maximized? What price will be charged? What are total profits at this output level? c. What market structure did you assume? Why? d. Would your answers
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What is your evaluation of the Total Supply Chain Cost (TSCC) program developed by Owens & Minor and Virginia Mason? * Virginia Mason Medical Center (VM) hired Owens & Minor (O&M) as its alpha vendor for medical/surgical supplies in 2004. At that time O&M was performing JIT and low unit measure services for VM. Together VM and O&M worked together to create a new supply chain process called the Total Supply Chain Cost (TSCC) pricing program. * TSCC was is an activity-based
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1 In a process cost system‚ product costs are summarized: on job cost sheets. when the products are sold. after each unit is produced. on production cost reports. What decision criteria should managers use in selecting projects when there is not enough capital to invest in all available positive NPV projects? the internal rate of return the discounted payback the profitability index the modified internal rate of return 3 Horizontal
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the relevant cost is the cargo cost only. Therefore‚ profit contribution of carrying I ton of tapioca from Balik and Singapore: Expected revenue $5.10 Less freight cost (0.25+0.56) 0.81 Profit Contibution 4.29 From Singapore to Balik: Expected Revenue $2.70 Less freight cost (0.16+0.32+0
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that the salesperson in Example 1 (page 177) has a salary goal of $800 per week. If product B is not available one week‚ how many units of product A must be sold to meet the salary goal? If product A is unavailable‚ how many units be sold of product B? (3) Assume in Example 1 (page 177) that the salesperson receives a bonus when combined sales from the two products exceed 80 units. The bonus is $2.50 per unit for each unit over 80. With this incentive program‚ the salary function must be described
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Analysis of Cost‚ Profit and Total Revenue Prepared by: Cajucom‚ Mary Jane Constantino‚ Georgia Escuadro‚ Abigail Ferry‚ Yasmin Joy Orobia‚ Maribel Lopez‚ Rannel Tumale‚ Mary Joyce Submitted to: Mrs. Gina Braga Accounting versus Economic Costs Economic costs Are forward looking costs‚ meaning‚ economist are in tune with future costs because these costs have major repercussions on the potential profitability of the firm. ● Opportunity cost‚ or costs that are incurred
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A SHORT HISTORY OF THE COST PER DEFECT METRIC Version 1.1. May 5‚ 2009 Abstract The oldest metric for software quality economic study is that of “cost per defect.” While there may be earlier uses‚ the metric was certainly used within IBM by the late 1960’s for software; and probably as early as 1950’s for hardware. As commonly calculated the cost-per-defect metric measures the hours associated with defect repairs and the numbers of defects repaired and then multiplies the results
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introduce a mid-priced 2 version of the firm’s DC6900 minicomputer product line-the DC6900-X minicomputer. The DC6900-X would sell for $ 3900‚ 3 with unit variable costs of $ 1‚800. Projections made by an independent marketing research firm indicate that the DC6900-X 4 would achieve a sales volume of 500‚000 units next year‚ in its first year of commercialization. One-half of the first year’s 5 volume would come from competitors minicomputers and market growth. However
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delegates from across the territory. They met at the University of Alaska in Fairbanks in November 1955 to write a constitution for the proposed state. Alaskans voted approval of the constitution in April 1956. The new constitution was set to take effect when and if Congress granted statehood for Alaska. Efforts finally paid off in 1958 when Congress approved statehood for Alaska. President Dwight D. Eisenhower signed the Alaska Statehood Bill into law on July 7‚ 1958. Alaskans accepted statehood
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described by: Q = 5000 - 200P Firm 1 has a unit cost of production c1 equal to 6 whereas firm 2 has a higher unit cost of production c2 equal to 10. a. What is the Bertrand-Nash equilibrium outcome? b. What are the profits for each firm? c. Is this outcome efficient? Answer: (a) At equilibrium‚ assuming that if both firms charge the same price‚ then the firms split the market evenly. (b) The higher cost firm makes zero profit‚ whereas the lower cost firm’s profit is (c) No‚
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