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- Suppose the government imposes a per-unit tax on the buyers of instant noodles. Does it necessarily mean that the buyers have to bear the entire tax burden? Explain with a diagram. With the above diagram, explain the impact of the per-unit tax on the consumer surplus, producer surplus and total surplus.Why is it necessary for problem formulation to come after goal formulation?Why problem formulation must follow goal formulation?
- A transfer-pricing method leads to goal congruence when managers: a. act in their own best interest and the decision is in the short-term best interest of the company b. act in their own best interest and the decision is in the long-term best interest of the manager's subunit c. act in their own best interest and the decision is in the long-term best interest of the company d. always act in their own best interestOn August, a light business bought $3600 worth of lamps. At the beginning of September, the store had $1400 in lights on hand, and by the end of September, it projected to have $1600 in lamps on hand to meet some of the forecasted October sales. And what's the August planned cost of goods sold?Aqua Man Company manufactures and sells a single product. Planned and actual production in its first year of operation was 100,000 units. Planned and actual costs for the year were as follows: Manufacturing Non-manufacturing Variable P600,000 P500,000 Fixed P400,000 P300,000 The company sold 85,000 units of product at a selling price of P30 per unit. Using absorption costing, the company’s operating profit was Select one: a. P1,020,000 b. P975,000 c. P900,000 d. P750,000
- You are the Operations Manager of the UBSC which has an artificial soccer pitch. The club closes at 4 p.m. on Saturday. A community soccer club approaches you and asks to hire it from 4 p.m. until 6 p.m. If the pitch is open for public use you must provide staff, which will cost $30 per hour. What price should you charge for the hire and what are your business considerations?Determine which factor of production is needed in the following problem. 1.The ABM manufacturing Co.hired a gardener.He uses a lawn mower for landscaping.Which factor of production would you consider this machine? 2.The owner of the company withdrew cash for the salaries of thw employees.which factor of production would you consider cash on hand? 3.The top manager of the firm said "the great ideas,consepts and emotional determination of a person to produce something that consumers want to buy" is very important for the company.What factor of production describes the ability to create great ideas? 4.The farmers planted pineapple cutting in the vacant area located in their locality.Which factor of production would you consider a pineapple plantation?Describe what the problem is you are focussing on (current situation) and the final goal is that you want to achieve (purpose - desired outcome).
- c) (i) A company manufactures a component which it sells for £100. The variable cost associated with its manufacture is £52 per component. Fixed costs allocated total £384,000. Determine how many components the company needs to sell to break even (i.e. to cover the sum of fixed and variable costs). (ii) Plot a graph which shows the break-even point in terms of the number of components produced.What are Adjacent CPF Solutions?Mary Jones and Jack Smart have joined forces to start M&J Food Products, a processor of packaged shredded lettuce for institutional use. Jack has years of food processing experience, and Mary has extensive commercial food preparation experience. The process will consist of opening crates of lettuce and then sorting, washing, slicing, preserving, and finally packaging the prepared lettuce. Together, with help from vendors, they think they can adequately estimate demand, fixed costs, revenues, and variable cost per 5-pound bag of lettuce. They think a largely manual process will have monthly fixed cost of $50,000 and a variable cost of $2.50 per bag. They expect to sell 75,000 bags of lettuce per month. They expect to sell the shredded lettuce for $3.25 per 5-pound bag. Jack and Mary has been contacted by a vendor to consider a more mechanized process. This new process will have monthly fixed cost of $125,000 per month with a variable cost of $1.75 per bag. Based on the above…