Therefore, Buying New Equipment with fixed cost of $200,000 variable cost of $500 for every 1,000 sneaker is more cost-effective for the organization. B. The future periods of sales are displayed for periods 10-21 along with forecasted sales for each period. Within the Least-Squares
Therefore, if when a consumer enters a store and sees similarly priced products, one imported and one made domestically, they can choose a US made product without feeling as if they are overpaying for the same product. Many American consumers would like to purchase American products but if American products are considerably priced higher than imports, it will make it a difficult decision. Since the protective tariffs would even the playing field for the consumer, it would be a beneficial implementation. 2. Point #2: Tariffs protect American jobs and wages.
He compares the use of hemp compared to wood. Dean Curran writes, “Hemp produces twice as much fiber per acre than the average forest. When added with worthless fibers that are currently burned such as straw from oats, rice and wheat, hemp can be used to create construction materials stronger than lumber” (Curran). So not only can hemp produce more paper then wood it also creates construction materials stronger than it as well. Lots of things are made from wood everyday but it has nowhere near the same production that hemp has.
They began to investigate the marketing program for the new product, and recognized that there were not only valuable possibilities, but also problems they would have to solve before launching the product. Objectives: To improve the gross margins of Chipman union to above 20% by introducing branded socks, for this introduction they have planned a market research. Situation Analysis The Hosiery Industry In 1979 the hosiery shipments totaled 289 million dozen pairs of which 25% were men’s socks. In the men’ socks dress contributed 34.9 % of sales and casual contributed 21.9% of sales. The revenue split was in similar ratio as of sales across different types of hosiery .Per capita consumption of men’s socks was stable at around 10 pairs annually.
"Based on my latest figures, the shoes cost me $2,000 per batch to produce and the sneakers cost $1,500 per batch to produce." "I need a production plan for a total of 50 batches of shoes and sneakers for this period which will meet all requirements and minimize production costs." Capacity issues "I have one other issue I'd like to get resolved," Handel continues. "We're producing two versions of loafers: the Kiltie Tassel Loafer and the Classic Penny Loafer." "The production of these two slip-on products both require processing in our assembly department and our finishing department."
Using a flexible budget is more accurate in this instance as it captures the change in anticipated production from 10,000 to 10,800 bikes. Variance Analysis Implications and possible Causes Frame Assembly Department There is a favorable cost variance in the frame assembly department of approximately $82,663 when comparing actual costs to flexible budgeted costs. Steel tubing has a total unfavorable variance of $8,100. The original budget for 2004, estimated the cost of steel tubing at $30.00 / lb. Actual costs were $31.50 / lb., which may indicate unanticipated price increases (for example an increase in commodity prices since steel is a commodity), or higher costs for additional orders of steel required to meet the increased production demand.
Close substitutes B. Diseconomies of scale Correct C. Government licensing D. Price-taking behavior Answer Key: C Question 3 of 19 5.0 Points Other things equal, which reduces competition in an industry? A. Patent laws Correct B. Freedom of entry for new firms C. An increase in the number of producers D. An increase in the number of buyers Answer Key: A Question 4 of 19 5.0 Points The representative firm in a purely competitive industry: A. Will always earn a profit in the short run B.
The price premium given for Husky is $200k over a comparable competitor’s machine ($1.2m vs. $1.0m). The table in Appendix A illustrates my calculations in solving for annual operations costs. Because Husky equipment is faster, I found “Husky Equivalent” costs for the competitor; that is, how much does it cost all-in for the competitor to run the same number of cycles that Husky’s machine can do in a year. 365 days of operation for Husky is roughly 489 days of operation for the competition. I made a number of assumptions, including resin cost per gram of $0.16 (the latest figure on the chart in Exhibit 11), 365 days of operations per year, and annual cost per square foot of $60 (average of the $20-$100 range given in the case).
A country that can produce goods by using resources that it has more of has the comparative advantage. In simulation, Rodamia had the comparative advantage when producing cheese. Comparative advantage is the basis for international trade. By producing and exporting products in which a country like Rodamia has a comparative advantage and importing products from countries that have a comparative advantage in producing them, all countries gain from international trade. Comparative advantage can arise from many factors such as natural resources, availability and relative efficiency of factors of production.
In fact, it is hard to find a reason why cotton should be used over hemp at all. The cotton and hemp fibers are similar, however hemp fibers are actually three times stronger and much more absorbent making it one of the world’s top textiles. Hemp is known to produce over 5,000 textile products and over 25,000 products can be produced from the remains of the textile processing. The downside of hemp clothing is the coarseness but it can easily be mixed with other natural fibers to produce a smoother, more fashionable clothing material. A concern of the stronger and more durable hemp fiber is that it may become heavy and hot in the summer.