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.
Monopoly output: MR=400-4q MC=40 MR=MC 400 – 4q = 40 then q=90 unit The reason that producing on half the monopoly output (90*1.5 = 135) a Nash equilibrium outcome is that it will exceed the market demand of Nash equilibrium ($160). 4. Problem #8, p. 221-222 in text. (HINT: First calculate the profits of a market with two firms, and then continue this process for 3, 4, and 5 firms.) a.
This issue is in fact more of an opportunity and the opportunity is to reduce the variable cost associated with the consolidated shipments as the estimated growth in shipments from China and Taiwan is 15% per year. This growth rate implies the cost reduction in consolidated shipments which is 11% of total will be contributed to profit margin. Inferred from this issue of consolidated shipments is an issue of increased lead times which in supply chain is very crucial. So the issue is to reduce lead times incurred due to consolidation of small shipments so that supplier to Grainger delivery
With reference to extract one, assess the likely effect of a fall in the sterling exchange rate on the UK’s deficit in the trade of goods and services. (12 marks) A fall in the exchange rate of 25% means the pound becomes weaker, this means imports are more expensive, and exports are cheaper. As a result of this, this may mean a large increase in demand for exports and a considerable decrease in demand for imports, therefore decreasing the deficit of the balance of payments in the UK as predicted. However, if the goods we are importing and exporting are inelastic, meaning they have a less than proportional response to price, an increase in the price of imports, and a decrease in the price of exports may not have a great effect on the trade of goods and services and so therefore not improve on the deficit the UK holds. As stated in extract 1, it tells us that the goods we import are not made in the UK and so makes it impossible to replace the imports, therefore meaning that we still have to import goods, despite the high prices due to the low exchange rate of sterling.
AVs are also likely to be substantially more expensive than conventional cars, However, these outcomes are not predetermined, and can be addressed through a variety of policy tools. Jobs will also be lost. The act of driving is the source of many reasonably well-paid jobs. Recent
wooden bat debate relates directly to economics, namely cost. A good aluminum bats cost approximately $250 and will last at least one season if not more. A good wooden bat, on the other hand, costs approximately $80 and can last as long as one at bat or for several games. For cash strapped amateur leagues, this can have a huge impact on their operating budget. Due to wooden bats breaking at a much higher rate, they have to be replaced more often.
Compared to thirty years ago, our society is much richer. And moreover, we have more machines doing more of the hard work. Surely all of this should mean working less, not more? There’s only one reason for this absurd situation: people’s natural desire to make more money. This is all well and good, but do we really need that take-away on a Friday night, that extra dress from Oxford Street or that newer, more stylish car?
The Efficiency of Cars Nikeisha S. Sandy SCI207: Dependence of Man on the Environment (ABL1146J) Instructor: Walter Lambert December 12, 2011 The efficiency of cars is a major issue. There are several reasons why cars should be more efficient, however, there are many reasons why they should not. The efficiency of a car can affect both the economy and the atmosphere. While cars should not be more efficient, cars should be more efficient because the cost to the consumer may decrease, more efficient cars can save money on taxes, and cars are a necessity. At one point, the idea of using a car that was electric powered may have seemed outrageous.
For example, “The main reason the United States if richer is because...they work about 20% more hours per year than Europeans (newfederalist).” Based off of this study, we see that while Americans are wealthier, they are working a lot more strenuously to make this money. Stress levels among citizens living in the United States are much higher than in France. Americans are stressed with deadlines and work while in France the work is not as strenuous. When comparing health cares
In 2004, Samsung did sharp drop in the market prices. This had to an increase in industry capacity and also a normal cyclical downturn. The tables show that the productions selling price is getting low while operation profit is increasing. Samsung has a benefit advantage is by its ability to charge higher prices than its competitors. According to Exhibit 7a, Samsung’s prices per chip are on average higher by $0.72 than those of its competitors, or by 14.5%.